Fitch Ratings: cost of floods in China

Fitch Ratings estimates the amount of damage caused in July 2021 by floods in Henan province, China, at 8 billion CNY (1.2 billion USD).

Henan experienced torrential rains on 16 July 2021, causing severe flooding. The Chinese province recorded a year's worth of rain in just three days. 60 people have been reported dead and millions were heavily affected by the floods.

According to the rating agency, flood-related losses will greatly impact the results of non-life insurers in 2021. Motor, property damage and agricultural risks recorded the highest losses. The incurred losses are expected to be worsened by the inclusion of catastrophe coverage for motor insurance.

People's Insurance Company of China estimates its losses at 2 billion CNY (307.63 million USD) as of 25 July 2021. Ping An Insurance expects losses of about 1 billion CNY (153.81 million USD) for the claims reported as of 23 July 2021.