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Japanese typhoon will cost insurers up to $10 billion

Insured losses from Typhoon Faxai will be anywhere between $US3 billion and $US7 billion ($4 billion and $10 billion), risk modelling firm AIR Worldwide says.

The typhoon made landfall in Japan last week. It was packing sustained winds of 170 kmh and struck Tokyo with a force equivalent to a category 2 hurricane. It is comparable in strength to Typhoon Jebi, which devastated Japan last year.

Southwest of Tokyo the city of Izu had more than 43 cm of rain in 24 hours, and a storm surge of more than a metre was experienced on the Izu Peninsula. On the main island of Honshu, 900,000 people were left without power.

The estimates don’t include land and infrastructure losses, business interruption, rain-induced flood or landslide.