In the aftermath of the December floods, insurance firms have witnessed a 40-50 per cent increase in policy sales in Chennai and the surrounding areas. “Call it ‘fear psychosis’ or ‘being extra cautious’, Chennaiites have become more alert when it comes to protecting assets. If you rewind back to a few months ago, the insurance claims touched Rs 5,000 crore after the floods,” an insurance analyst pointed out.
The total losses due to the floods were estimated to be at least $2 billion. Insured losses were $0.8 billion, making the floods the second costliest insurance event in India on sigma records. “A large part of the losses originated from commercial lines as Chennai is home to many manufacturing companies, particularly in the motor industry,” according to an analysis by Swiss Re on natural catastrophes and manmade disasters in 2015.
