AIR Worldwide pegs typhoon Faxai insured losses between $3bn and $7bn

Catastrophe risk modelling firm AIR Worldwide estimates that industry insured losses from Typhoon Faxai, which made landfall in Japan on September 9, will be between JPY 340 billion ($3 billion) and JPY 740 billion ($7 billion).

Faxai was comparable in strength to Typhoon Jebi, which devastated the southern Shikoku Island in 2018.

The storm made landfall in Yokosuka, a southern suburb of Tokyo, on the main island of Honshu at around 3:00 AM local time Monday, September 9, with 1-minute sustained wind speeds of 170km/h (105 mph). Faxai crossed Tokyo Bay to strike Tokyo City with winds still equivalent to a strong Category 2 hurricane.

According to AIR, Faxai brought damaging winds across southeastern Honshu, along with storm surge and heavy precipitation to coastal regions. Impacts were reported across Chiba, Kanagawa, and Shizuoka prefectures. Storm surge was highest along the eastern shores of Tokyo Bay. Typhoon 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.

AIR's modelled 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.

It does not, however, include the losses from precipitation-induced flood, landslide, losses to land, infrastructure, and to CAR/EAR, marine hull, or marine cargo lines of business, business interruption losses, loss adjustment expenses, and demand surge.

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