Chennai floods have caused an enormous loss to the Indian economy. As per Aon Benfield, the reinsurance broker, due to torrential rains and massive flooding in Chennai, the Indian economy has suffered a whopping $3 billion loss.
In the monthly report on global catastrophes, the full-service capital advisor has analyzed the amount of loss Chennai has suffered due to flooding rains in the month of November and December. Previously, ASSOCHAM had estimated the financial loss in Chennai floods to exceed a good 15,000 crore.
The head of impact and forecasting of the Asia Pacific region at Aon Benfield, Adityam Krovvidi said in a statement, new economic developments in Asia are taking place in flood plains and marshlands with scant attention to drainage, thus increasing run-off and flooding.
This year, Chennai rains broke several records including a century-old rainfall record. As per Krovvidi, the Chennai catastrophe shows the weakness of the general nature of the economic pursuit. There were also indications of the low insurance penetration in India, as The General Insurance Corporation in India reported only $300 million insurance claims.
Chennai rains have not only affected the Indian economy, but it has also caused immense damage to life and property. The severe flooding has left a scar on the residents of the capital city, which will take a really long time to heal.
Image Credit: themalaymailonline.com