Advertise here, Reinsurance News

Menu

Reinsurance News

Kansai Airport recovers over 75% of Typhoon Jebi loss from insurance

6th June 2019 - Author: Matt Sheehan

Japan’s Kansai Airport has reported that it has recovered from its insurance program more than 75% of the losses it incurred as a result of Typhoon Jebi.

kansai-airport-typhoon-jebi

Kansai Airport’s runways submerged under seawater on September 4th after Typhoon Jebi. Source: Mainichi

Jebi is thought to have caused a profit decrease and disaster losses totalling 8.1 billion yen (US $75 million) in fiscal 2018 alone, but proceeds from Kansai Airport’s disaster insurance scheme totalled 6.2 billion yen ($57.5 million).

The airport, which is located on a man-made island near the city of Osaka, was heavily impacted by Typhoon Jebi in September of last year after storm surge inundated its premises with several meters of seawater.

The situation was further exacerbated when a large tanker crashed into the bridge that links the airport to the mainland, stranding passengers and staff and resulting in a temporary closure for two days.

In spite of the disruption, Kansai Airport turned a net profit of 29.6 billion yen ($273 million) for the year, with operating revenues up 7% and operating income up 8%.

In preparation for massive natural disasters in the future, the airport is undertaking a 54.1 billion yen ($499 million) project to further enhance its protection.

This will involve preventing high waves from overtopping its seawalls, better protecting electrical facilities and other key infrastructure that may be exposed to torrential rain or high waves, and improving drainage systems to expedite the recovery of airport functions.

The latest estimates from risk modellers such as PCS have suggested that the total insured loss resulting from Typhoon Jebi in Japan is already as high as $10 billion, with the potential for further loss creep to push the eventual cost even higher.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
BMS takes investments from major institutions at $636mn valuation

UK headquartered brokerage BMS Group has announced that it's secured a significant investment from British Columbia Investment Management Corporation (BCI)...

Close