Hong Kong insurance: ‘Once-in-500-years’ September rainstorm triggered US$244 million of claims, second only to Mangkhut-linked losses

Hong Kong’s insurance industry received a total of HK$1.9 billion (US$243.6 million) in claims related to damage caused by a devastating black rainstorm and Typhoon Saola in September, making them among the highest claims on record.

The city’s 104 general insurers received a combined HK$1.54 billion worth of claims filed by the owners of cars, businesses and property for the damage done by the black rainstorm on September 7 and 8, according to data from the Insurance Authority released on Monday. Saola separately prompted HK$361 million of claims on September 1.

The rainstorm triggered the second-highest in claims, behind only the record HK$3.1 billion paid out in 2018 in the wake of Typhoon Mangkhut. In comparison, only HK$858 million was paid out on Typhoon Hato in 2017, while the outbreak of Severe Acute Respiratory Syndrome in 2003 involved only HK$325 million of claims.

The September rainstorm, which Hong Kong officials described as a “once-in-500-years” event, left one person dead and 117 injured, with many cars, shopping centres and properties damaged by flooding.

“These figures serve as a stark reminder that having adequate insurance coverage is of utmost importance for individuals and communities alike,” said Sally Wan, chairwoman of the general insurance council of the Hong Kong Federation of Insurers (HKFI).