Munich Re Estimates Thai Floods' Losses At 500 Million Euros

[webfact]

Munich Re estimates Thai floods' losses at 500 million euros

BERLIN, December 8, 2011 (AFP) - Munich Re, the world's leading reinsurer, said on Thursday that the worst flooding in Thailand for decades would cost it about 500 million euros ($671 million) before tax.

It said the estimate from the floods which reached their highest levels in October and November was still "subject to uncertainty" since the water had not yet fully receded in some areas.

"It therefore remains difficult to estimate losses in the worst affected industrial areas around Bangkok," the reinsurer said describing the floods as "the costliest natural catastrophe" in Thailand's history.

"The economic losses are huge since key industries are concentrated in the region north of the capital Bangkok and its environs," the statement said.

Three months of unusually heavy monsoon rains have inundated large swathes of Thailand, killing at least 675 people and affecting the homes and livelihoods of millions.

On Tuesday, Munich Re's big Swiss competitor, Swiss Re said that the Thai flooding cost it around $600 million but warned that the estimate could be revised.

Munich Re board member Torsten Jeworrek called the Thai floods a "wake-up call".

"In emerging countries of growing significance to the interconnected global economy, the provisions made for and adaptation to such natural hazards need to be improved in order to contain the losses," he said in the statement.

-- (c) Copyright AFP 2011-12-08

[laurentbkk]

well only for my house I already counted a loss of around 50,000 euros ... and its not dry yet ...still have 20cm in the house .

[sirchai]

well only for my house I already counted a loss of around 50,000 euros ... and its not dry yet ...still have 20cm in the house .

I'm pretty sure that it's more than 500 million Euros.............

[ShopBoy]

How did they arrive at that figures ? 500 million euros.

Don't wonder banks need to be saved analyst feeding junk figures all the time.

[uptoyoumyfriend]

i think they are talking about how much they have to shell out as underwriters of thai insurance co's

[ShopBoy]

i think they are talking about how much they have to shell out as underwriters of thai insurance co's

That would not be alot of money for what they have collected here.

[maidu]

All sorts of numbers being tossed around. Whether 500 million or 500 gazillion, it's all basically saying the same thing:

Tons of money being thrown to prop up a city that has suffered serious floods an average of every 3 years in the past 30 years. And even with 3 relatively new dams, this flood is considered the worst. Doesn't say much good for the dams which were supposed to avert this exact problem, does it. Who is reading the writing on the wall - written in mud, toxic filth and human blood?

So, this time it's a heap of money. In approx. 3 years it will probably be a 30% larger heap, and 3 years after that, an additional larger 30% more .....until 9/10ths of Thailands revenue will have to be devoted to trying to keep Bangkok from suffering year ' round standing water - and even then the expenditures will continue to balloon.

Is there are less insane way to deal with this chronic problem? YES! Start moving Bkk to higher ground, as much as possible. Sure it's expensive and inconvenient. Yet, continuing to prop up a flood-prone city with tens of billions of $$'s per year will prove to be more costly.

Meanwhile, there are no youth centers, no dog pounds, no decent libraries (outside one or two in Bkk), and few national parks in the entire country. Thais don't care about such things, as much as they care about malls, TV soaps, and whitening cream. Overall, Bkk is top priority, come h@ll or high water ......

[Credo]

I have to agree with you Maidu.