Some are calling an all-time high insurance claim in China over a devastating flood in central province Henan which has reportedly affected 11 million people and claimed dozens of lives.
Insurance giant Ping An will pay about 1 billion yuan ($154 million) in compensation related to the Henan floods, according to a statement on its website, with over 46,000 claims received.
97 percent of the claims are related to cars and the rest are related to damages to property, farms and accidents, including 39 deaths.
Another major insurer, The People’s Insurance Co (Group) of China (PICC), estimates that compensation will reach 2 billion yuan, according to a statement on its website, with more than 200,000 claims received already as of Sunday afternoon.
Historical Claim
The Henan floods – which have affected 11 million people and claimed at least 71 lives as of yesterday – are turning out to also become a historical event for insurers in China due in part to the growing prevalence of coverage in the mainland.
«The Henan flooding may well trigger the largest insurance payment in a single natural catastrophe in China as Zhengzhou is a major city,» said an «SCMP» report citing Louis Tse Ming-kwong, a managing director at Hong Kong brokerage Wealthy Securities.
The floods are reportedly being attributed in part to heavy rains which are estimated to have caused 82 billion yuan in economic damages thus far, according to local authorities.
