Japan earthquake damage estimated at up to $3.3bn
Catastrophe modeller Verisk has estimated that insured losses to properties from the New Year's Day earthquake in Japan are between $1.8 billion and $3.3 billion.
Verisk said the earthquake, which measured 7.5 on the Richter Scale, occurred off the west coast of Japan and affected the Noto Peninsula
"The Noto Peninsula earthquake caused damage across an extensive area around and south of the epicene," Verisk said. "While most of heavy damage occurred in Ishikawa prefecture and in particular Wajima city including a large fire, damage from ground shaking and liquefaction was observed in other prefectures such as Niigata and Toyama.
"Tsunami waves of over one metre inundated many buildings along the shore, especially in Wajima, Suzu, and Noto.
"Building codes in Japan are among the most advanced in the world and have been adopted and practiced well since 1981. In the areas impacted by 2024 Noto Peninsula earthquake, seismic code requirements are higher than those in the southern part of Japan."
The earnings impact on major domestic Japanese non-life insurers of losses stemming from the earthquake is expected to be manageable relative to the sector’s net profit, ratings agency AM Best said last week, adding that much of the risk for commercial properties is laid off to the international reinsurance market.
