The recent severe flooding in China’s Henan province is expected to suppress underwriting margins for the China non-life insurance and reinsurance industry in 2021, with total industry losses expected to exceed US $1.25 billion, according to Fitch Ratings.
At this level of insurance and reinsurance industry loss, it would account for more than 0.7% of the market’s entire premium base, the rating agency has explained.
As we explained last week, Henan in east-central China experienced torrential rainfall since July 16th, triggering devastating floods and landslides.
The equivalent of a year’s average rain fell for three consecutive days in Zhengzhou, the provincial capital, damaging thousands of properties and motor vehicles in the region.
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