AIR Worldwide, a catastrophic modeling firm has estimated the total damage to residential, commercial, and agricultural properties from Super Typhoon Haiyan will range between $6.5 billion and $14.5 billion. However, because insurance penetration in the region is relatively low, AIR estimates that insured losses will range between $300 million and $700 million. Wow, what an incredible difference between actual damage and that which is covered by insurance.
The storm created a humanitarian disaster in the Philippines as it swept away small villages in its path, left over 2,000 people dead, and displaced more than 650,000 people. The lack of insurance will create another type of humanitarian crisis when rebuilding begins.