Munich Re and SCOR estimate insured losses from Thai floods

Munich Re and SCOR have estimated their respective losses from the Thai floods to be EUR 500 million (roughly Cdn$674 million), net before tax, and EUR 140 million
(roughly Cdn$188.5 million), net of retrocession and before tax.
In view of the marginal penetration of flood insurance for residential properties in Thailand, the losses caused by this event will come almost entirely from manufacturing and supply chains, a SCOR release says.
The floodwaters are still slowly draining away in some of the industrial areas with the highest exposure, creating difficulty for adjusters to access the affected areas.
“The current market loss estimate is therefore largely based on the damage ratios being applied to the aggregate sums insured in affected areas, on underwriter assessments based on contract terms and conditions and on information provided by clients,” SCOR continued.
“A large number of electronic key component manufacturers were affected, leading to production delays and disruptions at client businesses. Approximately 25% of the world’s supply of components for computer hard drives is manufactured in Thailand and was thus directly impacted by the floods,” a Munich Re release says.
Recently, Aon Benfield estimated total insured losses from the event would be roughly $10 billion. Swiss Re’s estimated its claims costs from the event to be $600 million, net of retrocession and before tax.