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Thailand floods - One year on


Thailand floods - One year on

Between late July and early December 2011 Thailand endured colossal damage in the wake of the worst flooding in at least five decades.  More than 800 people were killed and millions of residents were left homeless following the flooding.  In total, 65 of Thailand's 77 provinces were impacted and economic losses were estimated by the World Bank at $45.7 billion.  That's over double the amount that was originally estimated and confirmed in our last story in November 2011.

Since then, the world's leading reinsurer intermediary Aon Benfield has released the 2011 Thailand Floods Event Report.  The report breaks down the impact of the floods including economic loss, damage impacts, and impacts on the insurance industry.

Some of the key findings include;

. As many as 1.5 million homes and other structures were impacted as a result of the floods
. Total economic losses to households were estimated at $2.7 billion by the World Bank
. The Department of Industrial Works reported that more than 7,510 industrial and manufacturing plants were damaged by floods in 40 different provinces
. The manufacturing sector endured the worst loss at $1,007 billion.  Most loses were sustained at industrial factories including Toyota, Mazda, Nissan and Sony
. Toyota announced that the Thai floods led to lost production of 260,000 vehicles due to damaged auto part facilities
. Mazda reported an operating loss of $656.8 million
. Nissan reported that recovery costs related to the impact on supply chains from the Thai floods was £67.6 million
. Sony was forced to temporarily shift production to other manufacturing facilities in Thailand, China, and Japan.  The company sustained a $107.2 million loss due to repair, removal, and cleaning of damaged facilities

It is likely that there will be further adjustments in the final loss figures as some of the losses are still being finalised.   Until then, Aon Benfield's Impact Forecasting (the catastrophe model development centre of excellence) has embarked on developing a riverine flood risk model to assist its clients during January 2013 renewals.

Aon Benfield is a division of Aon, the world's number one insurance broker.  To find out more about the leading employer click here.

 


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