Typhoon Haiyan will not be costly to insurers

Typhoon Haiyan that hit the Philippine coasts on November 8 has resulted in huge economic losses. Winds nearing 320 km/h and torrential rains were particularly harmful to the center of the country. By November 27, 2013, 5 500 people were reported dead and another 1 700 missing, while 10 million Filipinos have been affected.

The companies AIR and Eqecat specialized in natural catastrophe modeling have estimated that insured losses will be limited due to the low penetration of insurance in the affected areas. Moreover, only 15 to 20% of the insurance policies written covers flooding caused by typhoons.