Nonlife insurers bracing for ‘huge claims’ due to ‘Ruby’ onslaught
MANILA, Philippines–Nonlife insurance firms belonging to the Philippine Insurers and Reinsurers Association (Pira) are bracing for “huge claims” after the onslaught of Typhoon “Ruby,” but they expect that losses would likely not be as much as those caused by Supertyphoon “Yolanda” (Haiyan) in 2013.
“The year 2014 would have been a very good year for nonlife insurance companies. That is, if Ruby did not enter the picture,” Pira said in a statement on Monday.
“Though this may not be exactly like Yolanda, still we are preparing for huge claims,” Pira chairperson Emmanuel R. Que said.
Last year, nonlife companies paid P15 billion in insured losses mainly as Yolanda flattened central Philippines.
“Our biggest worry is if [Ruby] hits Metro Manila, which we hope does not happen. If it does, then what could have been a good year for us will turn into a bad year just like last year,” Que said.
(The Philippine Atmospheric, Geophysical and Astronomical Services Administration said Ruby, which has been downgraded to tropical storm, would be over Batangas by 6 p.m. Monday, and Metro Manila would feel the effects of the storm by then.)
Weather forecasts have warned Metro Manilans that Ruby would batter the metropolis on Monday night. The Metropolitan Manila Development Authority has informed the residents of the National Capital Region to prepare for strong winds, storm surges and floods.
As Ruby has already passed through the Visayas and inflicted heavy damage to properties in the region, nonlife insurers have started preparing for major claims, Pira said.
Que, however, said that “it is too early to come up with estimates as to how much will be the insured losses for typhoon Ruby.”
“We will know in the coming days once we have received actual reports from the ground,” Que said.
In 2013, the nonlife insurance sector posted a net loss of 3.35 percent, as industry net income slid to P3.163 billion from the previous year’s P3.272 billion due to a number of natural disasters and calamities that struck the country, including typhoons and earthquakes.
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