Japan: Kumamoto quake insurance loss estimates at US$800 mln-$1.2 bln
Source: Asia Insurance Review | Jun 2016
Insured losses for the magnitude-7.0 earthquake in Japan’s Kumamoto Prefecture on Kyushu Island on 15 April are estimated at US$800 million-$1.2 billion, according to RMS, a global catastrophe risk management firm.
RMS has also updated its economic damage estimate for the earthquake and the earlier 14 April M-6.4 earthquake to S$5.5-7.5 billion.
The RMS economic and industry damage estimates do not include business interruption or alternative living expense impacts, damage to infrastructure, damage to Kumamoto Castle, land damage, workers’ compensation, post-event loss amplification such as economic demand surge and price increases, marine and cargo assets, or auto, said RMS in a statement.
Second highest property insurance payout
Separately, Guy Carpenter said that industry estimates of the insured losses for property risks stemming from the Kumamoto Earthquake range from $1.7-$2.9 billion.
Guy Carpenter said in a statement: “The Japan Fire and Disaster Management Agency recently reported that the event had caused 65 fatalities, 332 severe injuries, and total damage to more than 2,000 buildings. Nearby companies including Nissan, Honda and Toyota Motor Corporation also felt the significant impact of the events, with Toyota alone expected to lose 80,000 units of production after shutting down nearly all of its assembly plants in Japan.”
The Kumamoto earthquakes are expected to result in the second highest property insurance payout total of any Japanese natural disaster, partly on the growing popularity of earthquake insurance. The March 2011 earthquake and tsunami disaster in northeast Japan holds the insurance payout record at JPY1.3 trillion (US$11.95 billion).