Severe flooding in the Kerala region of India the worst in a decade is now expected to drive economic losses of at least US$3 billion while the toll for the Insurance Industry is anticipated to rise.
Based on the scale of the flooding and the still developing catastrophe in Kerala, this estimates could still rise. Insurers are expected to shoulder claims from damage to property and contents, autos and Crops as well as some Commercial claims in the affected areas. Insurers have been instructed to settle claims under parametric micro Crop Insurance Policies, whose payout is linked to the weather conditions, as well as under other state-backed micro Insurance schemes including life and livelihood coverages. The Insurance Regulatory & Development Authority of India (IRDA) has issued a statement asking Insurers to settle claims quickly to help in the recovery from the flooding.