AIR Worldwide estimates Typhoon Faxai’s insured losses

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Industry insured losses from Typhoon Faxai will be between JPY 340 billion (USD 3 billion) and JPY 740 billion (USD 7 billion), catastrophe risk modeling firm AIR Worldwide estimates. Typhoon Faxai was comparable in strength to Typhoon Jebi, which devastated the southern Shikoku Island in 2018. Faxai made landfall in Tokyo southern suburb Yokosuka on the main island of Honshu at around 3 a.m. local time on 9 September, with 1-minute sustained wind speeds of 170km/h (105 mph). Faxai crossed Tokyo Bay to hit Tokyo City with winds still equal to a Category 2 hurricane. Additionally, Faxai brought damaging winds across southeastern Honshu, along with storm surge and heavy precipitation to coastal regions. According to AIR, Faxai surpassed Typhoon Higos for the strongest sustained wind speed at landfall in the region and tied with 1958's Typhoon Helen for the lowest recorded central pressure. High winds took out two electrical towers and multiple utility poles, leaving more than 900,000 without power in the prefectures of Chiba, Ibaraki, Kanagawa, Shizuoka, and Tokyo. Crops in the region, including rice fields and fruit farms, were also affected. AIR’s modeled insured loss estimates include insured damage to property (residential, commercial, industrial, and agricultural/mutual), both structures and their contents, and automobile from wind and storm surge. Its modeled insured loss estimates do not include: • Losses from precipitation-induced flood • Landslide • Losses to land • Losses to infrastructure • Losses to CAR/EAR, marine hull, or marine cargo lines of business • Business interruption losses • Loss adjustment expenses • Demand surge—the increase in costs of materials, services, and labor due to increased demand following a catastrophic event; demand surge can be applied by AIR software users who want to account for this variable

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