Typhoon Yagi, the second-most powerful storm to ever hit China, has led to economic losses of at least CNY78.6bn (US$11bn) in southern Hainan province, the equivalent to one-tenth of the tourism hub’s gross domestic product last year.
The Hainan government announced that the typhoon caused direct economic losses of CNY9.6bn (US$1.4bn) in the northwestern Lingao county. The storm severely affected 400,000 people, which is around 96 percent of the administrative district’s population.
According to previous press conferences held by the provincial government, Typhoon Yagi caused combined losses of more than CNY69bn in Haikou, Wenchang, and northwestern Chengmai county, reported Yacai global.
Typhoon Yagi made landfall near the coast of Wenchang on 6 Sept., with maximum wind speeds at the centre reaching 62 metres per second. It is the second strongest typhoon to make landfall in China after Rammasun, which hit Hainan in July 2014 with maximum wind speeds of 70 m/s.
Typhoon Rammasun caused direct economic losses of CNY12bn in Hainan, six times less than the losses already caused by Yagi, according to official figures.
As of 7 Sept., Yagi had affected 526,100 people across 19 cities and counties in Hainan, resulting in four deaths and 95 injuries. The typhoon caused significant damage to crucial infrastructure, including water, electricity, natural gas, and roads, as well as to agriculture and the service industries, according to the local government.
Yagi has devastated the Asia region. In the Philippines, it left in its wake 15 dead and 21 missing, causing millions of USD in agricultural losses. The storm was also described as Vietnam’s worst storm in decades. It caused widespread damage in northern Vietnam, particularly in Quang Ninh, Hai Phong, Hanoi, and neighbouring provinces and cities. With low attachments in the region, AM Best expects the bulk of natural catastrophe losses will be worn by domestic and international reinsurers, potentially putting nat cat appetite to the test in the upcoming 1/1 renewals.
