Swiss Re, a global reinsurance corporation, has released its estimates of the damage done by the recent flooding in Thailand. Heavy rainfall in July caused widespread flooding in many parts of Thailand. Waters first began receding in late October and many parts of the country are still inundated. More than 600 people have lost their lives to the disaster with many thousand more losing their homes. According to Swiss Re, the damage caused by the floods could cost the insurance industry as much as $11 billion.
More than 1,500 industrial facilities were affected by the disaster. The floods put to a halt production of automobiles and other products for several weeks. Swiss Re expects that the floods will have a major impact on Thailand’s economy, as many of the nation’s most active businesses were shut down as a result of the flooding. Thailand also plays a major role in the world’s supply chain. With supply disrupted to some degree, the impact on the global economy, while modest, will surely be felt.
As much of the water has yet to recede, Swiss Re has not been able to fashion an official estimate regarding the damage done to properties. As insurers continue to process claims and Swiss Re’s agents comb through the data, these estimates will become available. Until then, the already daunting price tag attached to the disaster will have to suffice.