$3.3bn in insurance claims filed in Thai floods

The worst flooding in Thailand in more than 50 years has left more than 350 dead and caused an estimated $5bn in economic damage and prompted $3.3bn in insurance claims thus far.An analysis of the catastrophe released on Tuesday by Guy Carpenter & Co. LLC noted that the floodwaters threatening Bangkok had affected 61 of Thailands 77 provinces, forcing several industrial parks to close and affecting an estimated eight million people. The flooding was caused by monsoon rain and the remnants of Tropical Storm Nock-ten.Carpenter noted that the flooding had done "massive" damage to manufacturing in Thailand, with defenses surrounding seven industrial parks breached and approximately 1,300 factories affected by the floods.Suspended production at inundated factories was expected to cause significant supply chain disruptions, with companies such as Honda Motor Company Limited, Nissan Motor Company Limited and Toyota Motor Corporation, saying they expected Thai facilities to be closed for more than a month.Electronics and high-tech firms also were hit hard. Toshiba Corporation announced that flooding forced it to halt production at nine Thai plants, with production not expected to resume before January. Flooding closed two Western Digital Corporation plants in Thailand responsible for approximately 60 per cent of the companys hard drive production. Sony Corporation was forced to close two of three facilities in Thailand, forcing it to delay the launch of some new models; while Nikon Corp. said it was unsure when it will be able to reopen a facility reported to account for 90 per cent of the companys single-lens reflex camera production. Canon Inc closed production at two Thai facilities, and was considering relocating its inkjet printer production to Vietnam, according to reports.Carpenters report noted that while central Bangkok is protected by flood barriers, floodwaters had started to affect outlying areas of the capital. The Thai government estimated it would take approximately 10 weeks for floodwaters built up north of Bangkok to drain through areas of the city into the Gulf of Thailand.Flooding forced the closure of Bangkoks second airport, Don Muang International, on Tuesday, though the countrys main international airport, Suvarnabhumi, was still in operation.
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