Zurich-based catastrophe insurance data provider PERILS has disclosed its third industry loss estimate for Typhoon Nanmadol, raising it to JPY 129.6bn ($988m).
This latest figure compares to PERILS’ previous loss estimates of JPY 119.7bn (USD 910 million), released on 20 December, and JPY 113.5bn (USD 860 million), released on 1 November.
PERILS states that in accordance with its coverage definition for Japan, this number encompasses only property losses sustained by the Japanese non-life insurance industry and does not include losses suffered by the cooperatives insurance industry (Kyosai).
Typhoon Nanmadol made landfall on 18 September near the city of Kagoshima on the southern island of Kyushu, which incurred 75% of the losses.
According to PERILS, despite gusts of up to 183km/h and rainfall of up to 904mm within 72 hours, the overall size of the industry loss was not exceptional for the Japanese non-life insurance industry.
The catastrophe insurance data provider adds that the manageable loss impact of Typhoon Nanmadol demonstrates the high level of preparedness across Kyushu Island for extreme weather events.
Typhoon Nanmadol was the 14th named storm in the 2022 Western North Pacific typhoon season.
Takashi Goda, Senior Advisor for PERILS in Japan, commented, “This third loss report on Typhoon Nanmadol is an important milestone for the Japan non-life insurance industry.
“This is the first time that property LOB-level industry loss information per prefecture has been released for a typhoon event.
“Our ability to deliver such a detailed industry loss footprint has only been possible due to the strong support of the Japanese P&C insurance industry, for which we would like to thank them sincerely.”
Lukas Wissler, Product Manager at PERILS, said, “Our detailed Typhoon Nanmadol loss data can be applied to multiple use cases, including enabling the correlation analysis of maximum gust speed and damage degrees.
“This provides valuable insight into the vulnerability of insured property assets in Japan. In our view, there is clear value in being able to calibrate models with ground-truth data as it supports a more robust assessment of Japanese typhoon risk.”
Dalida Bachmann, Head of Client Relationship at PERILS, added, “In 2018, when Typhoon Jebi struck Japan, the industry-loss-based risk transfer market faced considerable challenges. There was no independent reporting agency and the industry loss sources used were slow in updating their estimates.
“With the release of our third loss report for Typhoon Nanmadol according to our pre-defined reporting schedule, plus the release of our Industry Exposure Database (IED) for Japan in June last year, we are able to provide a comprehensive solution that addresses these issues for Wind/Flood in Japan.”
