Typhoon Mangkhut bill could set Hong Kong record of US$1 billion in insurance claims

Economist says people and companies might evaluate durability of their properties or facilities, which will end up driving up costs and spending

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Damaged boats at Hong Kong Yacht Club in Causeway Bay. Photo: Handout

Published: 10:01pm, 17 Sep 2018Updated: 5:58am, 18 Sep 2018

Hong Kong faces a massive economic bill, including an unprecedented level of invoked insurance coverage, as the scars left by the city’s most intense storm on record emerge following the weekend’s terrifying ordeal.

One assessor estimated that claims could exceed US$1 billion, which would make Typhoon Mangkhut the most destructive storm in local history. The typhoon slammed into Hong Kong on Sunday and tore through cities in neighbouring Guangdong province before landing in the city of Taishan.

The city’s most intense storm on record led its weather officials to issue a No 10 typhoon signal, which remained in place for 10 hours. In the end, authorities received 1,500 reports of fallen trees and 500 reports of broken windows – both totals dwarfing those tallied last year after Typhoon Hato struck.

On Monday, Hong Kong International Airport was racing to clear a backlog of flights by rescheduling about 2,000 of them over a two-day period and deploying both runways round the clock. Most franchised public buses and some rail services proved unavailable owing to fallen trees blocking some 600 roads as well as train tracks.

Heng Fa Chuen housing estate, fronting Victoria Harbour on the eastern side of Hong Kong Island, witnessed extensive devastation. Powerful waves raged so forcefully that pavement was unearthed, an underground car park was inundated, and glass shattered across a wide swathe of the private development. Residents lost electricity and access to drinking water.