Typhoon Fitow which has hit the region of Shizuoka in Japan, is predicted to create insured losses of around $500 million.

The storm came onshore about 100 miles south and west of Tokyo and had maximum sustained winds at landfall of approximately 75 knots (88 miles per hour), making it a medium Category 1 storm.

Evaluations of the typhoon by US-based EQECAT, based upon current meteorological information and analysis using the EQECAT Industry Exposure Database for Japan has produced a "best estimate" of the insured losses from this event to be around ¥50 billion ($500m), although the range of losses may go as high as twice that, up to $1 billion.

EQECAT said considerations of the final insured loss figure include:

• Relatively low wind speeds producing primarily incidental damage. However, regional- or micro- gusts could significantly increase the damage estimates.

• The area affected is a large metropolitan area. At its closest approach to Tokyo (which was about 30 miles from the 'centre' of the storm) the maximum sustained winds still exceeded typhoon strength (in excess of 65 knots.)

• There will be significant incidents of flooding damage, especially since Fitow is still progressing along Honshu, with winds well below typhoon strength but bringing significant amounts of water and incipient loss exposure.

The bulk of losses are expected to be on household insurance. The expected economic damage, as opposed to insured losses, is likely to be around $2bn.