Shinkong, Fubon report highest exposures

By Joyce Chang, The China Post

Following the huge fire at the Eastern Science Park, insurance companies are in the progress of figuring out their losses, among which Shinkong and Fubon insurance companies are reportedly the most exposed, at about NT$30 million each.

The burned insured properties at the park are estimated to be worth NT$13.1 billion. Because most of them have been re-insured at other insurance companies, the actual amount that the insurance companies have to pay for the burned properties is sharply reduced.

The gross insurance exposure of Union Insurance is estimated at around NT$2 billion, with 22 fire insurance policies in the science park. However, the company estimates that the net amount it will be required to pay is NT$20 million.

Fubon Insurance covers burned insured properties estimated to be worth NT$1.4 billion, involving 25 insurance policies, but the actual amount that Fubon will have to pay is about NT$30 million. Similarly, Shinkong Insurance will pay around NT$30 million for its NT$1 billion worth of insured properties destroyed by the blaze.

First Insurance said that it might have to pay NT$15 million for the NT$300 million worth of burned properties covered by the company.

Meanwhile, Central Insurance is estimated to be exposed to NT$5 million of net claims, and Taiwan Fire & Marine Insurance to NT$1 million.

Three other insurance companies Chung Kuo Insurance, Central Reinsurance and South China Insurance are still processing their statistics. According to reports, the Tuntex Group and Acer Group suffered the worst losses in the fire. Tuntex’s fire insurance is covered by Union Insurance, and worth around NT$3.8 billion, while Acer Group is mainly covered by Zurich Insurance, valued at NT$2.5 billion. The insurance companies have said that the amount of compensation can only be finalized when the exact losses have been confirmed by the damaged companies and then assessed by building experts.