Lloyd’s estimates Thai flood losses could pass $2 billion

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20 February 2012

Global insurance market Lloyd’s expects net claims from last year’s devastating Thai floods to cost around $US2.2 billion ($2.06 billion).

Lloyd’s says the estimate of its own losses is consistent with the total $US15-$US20 billion ($14.05-$18.73 billion) the disaster is expected to cost the whole industry.

CEO Richard Ward says $US2.2 billion figure is a preliminary estimate only, and “actual net claims from these events may vary”.

“The Lloyd’s market is as well capitalised as it has ever been,” he said. “While claims from Thailand could still evolve over time, paying these claims is within the normal course of business for Lloyd’s.”

The floods started when unusually heavy monsoonal rains lashed the country in July and August producing huge volumes of water flowing across the country’s plains.

More than 800 people are thought to have died and millions more were displaced from their homes. Seven major business parks went three metres underwater, closing more than 10,000 factories and causing 350,000 workers to be laid off.

Japanese insurance firms have taken the heaviest losses from the floods, as they were most likely to insure the vehicle and electronics factories which dominated Thailand’s business parks.

The World Bank has put total economic losses from the floods at $US45 billion ($42.15 billion).