The first-ever typhoon warning insurance product for businesses operating in Hong Kong
You have to close or suspend your operations as a result of the Hong Kong Observatory (HKO) issuing a warning signal level 8 or above. Does your existing property and business interruption insurance cover against this type of event and potential impact on earnings?
Now, with Swiss Re Corporate Solutions you can. We developed Insur8, the first-ever typhoon warning insurance solution for businesses operating in Hong Kong. This new solution indemnifies local businesses against loss of earnings and additional operating costs stemming from a typhoon warning signal 8 or above.
For many businesses a typhoon warning signal of this magnitude can result in:
- Loss of earnings from customers not being able to reach your store or premises
- Reimbursement costs from an event being cancelled or postponed
- Loss of revenue from reduced productivity
When a typhoon warning signal 8 or above is issued, for safety reasons, many employers will not require their employees to report for work as per government guidelines. In addition, ferry, MTR and bus services may be impacted and suspended if weather conditions deteriorate.
That‘s why Swiss Re Corporate Solutions created Insur8, a solution made in Hong Kong, for Hong Kong.
Proud to be the winner of the Hong Kong Federation of Insurers' (HKFI) prestigious Insurance Awards 2017 for Insur8.
What‘s the exposure and likelihood of a typhoon 8+ signal warning?
Since 1980 there have been 51 recorded signal 8+ typhoons hitting Hong Kong (see figure 1). On average a typhoon 8 or higher signal warning lasts 13 hours, with the longest typhoon lasting 66 hours (Cyclone Mary in 1960) (see figure 2).
Why your organisation should consider Insur8 for typhoon exposure
- Typhoon warning signals level 8 and above can potentially disrupt many businesses in Hong Kong due to closure or suspended operations.
- Existing property and business interruption insurance products leave gaps in coverage and can result in substantial economic losses remaining uninsured.
- According to the Swiss Re Institute, the overall economic impact of this type of typhoon on Hong Kong’s GDP is estimated at 4.29 billion (627 million) per day.
- Typhoon warning signals level 8 and above happen on average 1.4 times per year, with the potential to create financial losses for many companies, especially in the retail, leisure, finance, hospitality, entertainment, construction, logistics and transportation sectors and more.