Insurance Mitigates Public Losses Caused By Natural Hazards


The Hong Kong Federation of Insurers (HKFI) today (22 March 2019) released statistics on claims incurred by the calamitous Typhoon Mangkhut in 2018 (Table 1). These statistics were collected from 59 insurance companies accounting for more than 80% of the market share.

Table 1: Claims incurred by Mangkhut (山竹) as of 16 November 2018

“Typhoon Mangkhut struck Hong Kong on 16 September 2018 and caused severe damage to the city. Close to 32,000 claims were lodged for various types of insurance with claims amount reaching close to HK$2.9 billion,” said Mr David Alexander, Chairman of the General Insurance Council (GIC) of the HKFI.

In view of the rising concerns towards catastrophic losses and their impacts on our community, the GIC collected claims data for all lines of business being affected by Typhoon Mangkhut and provided a more holistic picture. The enormous amount in claims duly reflects the vital social function being performed continuously by the insurance industry in mitigating the economic burden and retaining social stability against natural disasters.

“Over 70% of claims, i.e. HK$2 billion, was incurred by property damages. When comparing the figures with those arising from Typhoon Hato, we saw a 500% surge on reported case count,” said Mr Clement Hau, Deputy Chairman of the HKFI’s Fire Insurance Association. “These alarming figures remind us the importance of insuring your properties against catastrophic risks. Currently, 80% of households do not have household insurance and are exposed to huge risks. Tenants or home owners should consider taking out sufficient cover to protect their properties against catastrophic loss.”