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FOR IMMEDIATE RELEASE
HONG KONG - SEPTEMBER 26, 2022 09:13 AM (EDT)
Given Super Typhoon Nanmadol’s reduced strength upon landfall and the parts of Japan affected, AM Best expects insured losses to be manageable for Japan’s non-life insurers.
In its Best’s Commentary, “Manageable Impact of Super Typhoon Nanmadol on Insured Losses,” AM Best states that large insurers in Japan are well-capitalized and their comprehensive reinsurance programs will protect them from a significant impact on capital. If insured losses are not high from the event, which mainly affected the agriculture-heavy island of Kyushu, the amount of losses passed to reinsurers may not be significant. However, secondary perils such as hurricane-induced flooding, storm surges and landslides are not modeled to the same extent as primary perils, and loss creep was an issue for insurers after 2018’s Typhoon Jebi. Nevertheless, some of the necessary conditions leading to loss creep a few years ago may not necessarily apply given some of the initiatives major insurers have implemented in recent years.
The commentary also notes that any catastrophic event after above-average catastrophe years may cause reinsurers to revisit their risk appetite and underwriting.
To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=324320 .
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.