Tropical Cyclones in 2021 > Annex 1: Estimated Direct Economic Losses in Hong Kong caused by Tropical Storm Lionrock (2117) and Typhoon Kompasu (2118)

Annex 1: Estimated Direct Economic Losses in Hong Kong caused by Tropical Storm Lionrock (2117) and Typhoon Kompasu (2118)

1. Data collection

(A) Losses reported by government departments, public utility companies and other organizations

The Hong Kong Observatory conducted a survey to collect data on damages and economic losses caused by Tropical Storm Lionrock and Typhoon Kompasu from the following government departments, public utilities and other organizations between January and May 2022:

Government departments

Agriculture, Fisheries and Conservation Department, Architectural Services Department, Buildings Department, Civil Aviation Department, Civil Engineering and Development Department, Drainage Services Department, Electrical and Mechanical Services Department, Environmental Protection Department, Fire Services Department, Food and Environmental Hygiene Department, Government Property Agency, Highways Department, Home Affairs Department, Housing Department, Lands Department, Leisure and Cultural Services Department, Marine Department, Social Welfare Department, Water Supplies Department.

Public utility companies and other organizations

China Light and Power Company Limited, China Mobile Hong Kong Company Limited, City Bus Limited, Discovery Bay Transportation Services Limited, HGC Global Communications Limited, Hong Kong and China Gas Company Limited, Hong Kong Airport Authority, Hong Kong Broadband Network Limited, Hong Kong Electric Company Limited, Hong Kong Red Cross, Mass Transit Railway Corporation Limited, Hong Kong Telecommunications Limited, Hong Kong Tramways Limited, Reach Networks Hong Kong Limited, Kowloon Motor Bus Company (1933) Limited, Park Island Transport Company Limited, Sun Ferry Services Company Limited, Shun Tak China Travel Shipping Management Limited and the “Star” Ferry Company, Limited.

As of 31 May 2022, the losses reported from government departments, public utilities and other organizations are as follow:

To avoid double counting the insurance claims data in part (B), items with insurance claims covered have been excluded.

(B) Insurance claims data

The insurance claims statistics incurred by Tropical Storm Lionrock and Typhoon Kompasu in Hong Kong are provided by the Hong Kong Federation of Insurers (HKFI) based on its member surveys. Details of the statistics are as follows :

(B1) Insurance claims data of Tropical Storm Lionrock

The insurance claims incurred as of 9 December 2021 are as follows :

Adjusted by market share of the participating companies (71%), the insurance claims incurred by Lionrock is estimated to be (HK$ 125,269,247 + HK$ 6,282,451) / 71% = HK$ 185,284,082

(B2) Insurance claims data of Typhoon Kompasu

The insurance claims incurred as of 12 December 2021 are as follows :

Adjusted by market share of the participating companies (68%), the insurance claims incurred by Kompasu is estimated to be (HK$ 22,288,956 + HK$ 694,999) / 68% = HK$ 33,799,933

2. Estimation of direct economic losses caused by Tropical Storm Lionrock and Typhoon Kompasu

The estimated direct economic losses due to Tropical Storm Lionrock in Hong Kong are considered to be the sum of (A) total reported losses of government departments, public utilities and other organizations (net of related insurance claims) and (B1) insurance claims (adjusted by market share of companies participating in the survey):
= HK$ 34,742,939 + HK$ 185,284,082
= HK$ 220,027,021 (around HK$ 220 million)

The estimated direct economic losses due to Typhoon Kompasu in Hong Kong are considered to be the sum of (A) total reported losses of government departments, public utilities and other organizations (net of related insurance claims) and (B2) insurance claims (adjusted by market share of companies participating in the survey):
= HK$ 939,530 + HK$ 33,799,933
= HK$ 34,739,463 (around HK$ 35 million)

3. Disclaimer

The estimated direct economic losses are based on the best available information from the responses of government departments, public utilities and other organizations to the survey conducted by the Hong Kong Observatory, statistics on insurance claims collected from the members of the Hong Kong Federation of Insurers and other relevant government reports at the time of assessment. The estimates are for reference only as the data collection are by no means exhaustive and may be subject to various limitations in the survey responses and analysis method.

Acknowledgement

The Hong Kong Observatory gratefully acknowledges the government departments, public utilities and other organizations involved in the survey, the Hong Kong Federation of Insurers for providing insurance claims, and the Census and Statistics Department for providing professional advice to the survey and analysis methods of economic losses.