China – July 2016 Floods to Cost $33 Billion, Only 2% of Losses Insured

The flooding that struck parts of China during July this year were some of the worst since 1998, and are likely to cost $33 billion, according to Aon catastrophe report. Furthermore, only 2% of the damage is thought to be covered by insurance compared to nearly 70% for US storms

Impact Forecasting, Aon Benfield’s catastrophe model development team, today launches the latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during July 2016. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc.

The report reveals that much of China endured substantial seasonal “Mei-Yu” rainfall that led to a dramatic worsening of flooding along the Yangtze River Basin and in the country’s northeast. Nearly 20 provincial regions were impacted by floods that have been ongoing in some areas since May. Data from China’s Ministry of Civil Affairs indicated that a combined 764 people were left dead or missing, and more than 800,000 homes and other structures were damaged or destroyed.

Considerable damage to the agricultural sector was also prevalent with an estimated 18 million acres of cropland damaged by floodwater. Total combined economic losses were estimated at USD33 billion, with at least USD28 billion occurring in the Yangtze River Basin. The China Insurance Regulatory Commission cited insurance claims payouts representing less than 2.0 percent of the economic cost, with most of the claims from lost agriculture.

Adam Podlaha, Global Head of Impact Forecasting, said:

“While it was expected that China would see above normal rainfall during the peak monsoon months with such a strong El Niño, the intensity and scope of what transpired from the associated floods were at a magnitude not seen in nearly two decades. The flood peril is one which is becoming better understood by catastrophe modelers, and the industry is better prepared than ever to help create awareness of the risks associated with such large events.”

USA and Canada – July Floods Cost Over $1.5 Billion

Meanwhile, the United States recorded severe convective storms and flash flooding including in Nevada; Kentucky and Tennessee; Wisconsin and Minnesota; and West Virginia.

Total combined economic losses were minimally estimated at USD1.5 billion. By contrast to China, public and private insurers were anticipated to record losses nearing USD1.0 billion or 67% of overall economic costs.

Many of the storms were spawned by an extended period of very hot and humid conditions that led to a “Ring of Fire” thunderstorm pattern. This active weather pattern also contributed to elevated thunderstorm and flood activity and damage in Canada’s provinces of Alberta, Saskatchewan, Manitoba, Ontario, and Quebec. Total combined economic and insured losses were expected to well exceed USD100 million once all assessments are completed.

See the full Impact Forecasting July 2016 Global Catastrophe Recap report here.

Featured image: Yangtze River floods in China, July 2016, NASA

Flood Summary

Last updated: August 5, 2016
Event
Yangtze River Basin, China, July 2016
Date
June 30, 2016
Type
Inland flood, Landslide, River flood
Cause
Extreme rainfall, Long-term rainfall
Heavy rain and storms since 30 June have caused flooding and landslides in 11 provinces of the country, affecting Jiangsu, Anhui, Jiangxi, Henan, Hubei, Hunan, Guangxi, Chongqing, Sichuan, Guizhou and Yunnan, according to China’s Ministry of Civil Affairs (MCA). Since 30 June, several daily rainfall records have been broken, including in Macheng (285 mm), Jingmen (273 mm), Jiangxia (263 mm), Zhongxiang (230 mm), Huangpi (227 mm), all in Hubei Province, and Chaohu (293 mm) in Anhui Province, according to a statement by MCA.

Locations

Wuhan

Magnitude

Rainfall level
293 mm in 24 hours
Chaohu, Anhui Province - July 4 to July 5, 2016
Rainfall level
285 mm in 24 hours
Macheng, Hubei Province - July 4 to July 5, 2016
River level
Overflowing
Yangtze River, Wuhan - July 1 to July 7, 2016
River level
Overflowing
Han River, Wuhan - July 1 to July 7, 2016

Damages

Fatalities
168 people
June 30 to July 18, 2016
Figures for 11 provinces: Jiangsu, Anhui, Jiangxi, Henan, Hubei, Hunan, Guangxi, Chongqing, Sichuan, Guizhou and Yunnan
Missing people
29 people
June 30 to July 12, 2016
Figures for 11 provinces: Jiangsu, Anhui, Jiangxi, Henan, Hubei, Hunan, Guangxi, Chongqing, Sichuan, Guizhou and Yunnan
Buildings destroyed
73,000
June 30 to July 12, 2016
Figures for 11 provinces: Jiangsu, Anhui, Jiangxi, Henan, Hubei, Hunan, Guangxi, Chongqing, Sichuan, Guizhou and Yunnan
Total damage assessment
28 billion
June 30 to July 31, 2016
Figures according to AON Benfield catastrophe report for July 2016

Flood Summary

Last updated: August 5, 2016
Event
Northern China, July 2016
Date
July 19, 2016
Type
Inland flood
Cause
Extreme rainfall
Heavy rain since 19 July resulted in flooding in the provinces or municipalities of Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Shandong and Henan

Locations

A - Hebei
B - Henan
C - Xingtai

Magnitude

Rainfall level
244.9 mm in 24 hours
Xingtai, Hebei - July 19 to July 20, 2016
Rainfall level
165 mm in 24 hours
Beijing - July 19 to July 20, 2016
Rainfall level
193 mm in 24 hours
Tianjin - July 19 to July 20, 2016
Rainfall level
122.8 mm in 24 hours
Beijing - July 20 to July 21, 2016

Damages

Fatalities
164 people
July 19 to July 25, 2016
130 of the fatalities occurred in Hebei.
Missing people
125 people
July 19 to July 25, 2016
110 of the missing are in Hebei.
Buildings destroyed
125,000
July 19 to July 22, 2016
Evacuated
514,000
July 19 to July 25, 2016
Total damage assessment
5 billion
July 19 to July 31, 2016
Figures according to AON Benfield catastrophe report for July 2016

Flood Summary

Last updated: July 22, 2016
Event
China, Tropical Cyclone Nepartak, July 2016
Date
July 9 to July 15, 2016
Type
Inland flood
Cause
Extreme rainfall, Long-term rainfall
Nepartak made landfall near Shishi City in Fujian Province, early on 09 July, 2016. China's Ministry of Civil Affairs reports that severe weather in the wake of Nepartak continued to affect provinces of Fujian, Jiangxi and Guangdong until at least 15 July. Fujian was by far the worst hit, in particular Minqing and Yongtai counties.

Locations

A - Minqing
B - Yongtai

Damages

Fatalities
69 people
Fujian - July 9 to July 15, 2016
Evacuated
265,000
Fujian - July 9 to July 15, 2016
Buildings destroyed
16,000
Fujian - July 9 to July 15, 2016