Home insurance amidst extreme weather
Home insurance amidst extreme weather | Insurance Business Asia
Insurance News
Home insurance amidst extreme weather
How should Hong Kong prepare for upcoming typhoons?
Insurance News
By
Jonalyn Cueto
Hong Kong’s recent onslaught of extreme weather events has spurred a surge in insurance claims, prompting a closer examination of the role of insurance in mitigating losses. Last year alone, the city faced the double whammy of Typhoon Saola and a black rainstorm, resulting in staggering claims totaling HK$1.54 billion and HK$360 million, respectively, according to the Insurance Authority.
A virtual insurer found itself at the forefront of this battle, supporting numerous customers grappling with the aftermath of these natural disasters. One such policyholder, a resident of the New Territories, found relief in their OneDegree Home Insurance policy when their home was inundated during the September 2023 black rainstorm. Swift assistance ensured the family received approximately HK$280,000 in compensation, including temporary accommodation for two months.
Bracing for five typhoons this year
With the Hong Kong Observatory predicting up to five typhoons this year and recent months witnessing an unprecedented number of rainstorm warnings, the need for comprehensive insurance coverage has never been more urgent. Stephen Yiu Kin-wah, chairman of the Insurance Authority, stressed the pivotal role of insurance in mitigating losses during such calamities.
“While natural disasters are mishaps, insurance coverage does play a role in mitigating losses incurred to those affected. These events underscore the social value of insurance and remind us of the importance of identifying protection needs, proactively managing risks, and addressing protection gaps,” he said.
Emily Chow, deputy chief executive of OneDegree, emphasised the company’s commitment to policyholder welfare, highlighting their streamlined claims process aimed at expediting assessments and ensuring swift compensation.
“Policyholders can directly contact our claims team for updates on claim assessment,” she said. “Our efficient claims process can be completed in as little as two weeks, surpassing the months-long resolution typical of traditional insurers. This allows policyholders to receive swift compensation, aiding in home restoration and the resumption of normal life.”
Any thoughts about this story? Leave a comment below.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
