Insurance claims arising from the damage caused by natural disasters in Hong Kong are set to hit a record high of more than $500m (HK$3.92bn) in 2023, according to Bloomberg Intelligence.

Typhoon Koinu is expected to skirt the city later this week, with its arrival possibly adding to the damages in the storm season.

The rainstorm, along with damages caused by Typhoon Saola in September, are projected to contribute to the surge in insurance claims, the report says.

If Koinu’s arrival brings heavy rains to Hong Kong, it could contribute to the total figures.

In September this year, the South China Morning Post reported that enterprises and vehicle owners in Hong Kong might face increased insurance rates in the coming days due to the generation of more claims caused by torrential rains. 

Two regions in Hong Kong are still recovering from the damage caused by a rainstorm, which hit the region in September.

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By GlobalData

The rise in claims is expected to surpass a whopping HK$3.1bn payout executed in 2018 for Typhoon Mangkhut-associated damages, the report said.

According to Hong Kong Federation of Insurers data, the insurance claims arising from Mangkhut are recorded as the highest figures for a natural disaster since records commenced in the city in 1988.

The Swiss Re Institute previously noted that natural catastrophes across the globe incurred $50bn in claims payouts in the first half of the year.