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Verisk estimates up to JPY 340 billion insured losses from Kumamoto quake

Verisk put insured losses from the July 28 Kumamoto earthquake in Japan at JPY 220 billion to JPY 340 billion, highlighting uncertainty around shaking intensity, damage estimates and earthquake insurance take-up.

Summary

Verisk's Catastrophe and Risk Solutions group estimated insured losses of JPY 220 billion to JPY 340 billion, or about USD 1.4 billion to USD 2.1 billion, from the magnitude 6.8 earthquake that struck near Kumamoto City on Japan's Kyushu Island on July 28. The estimate provides an early gauge of potential exposure for insurers and reinsurers, with Verisk saying uncertainty remains around fault slip, ground-motion intensity, damage estimation and earthquake insurance take-up in Japan.

Terms & Concepts
  • insured losses: Estimated claims covered by insurance policies, excluding uninsured damage and other excluded categories.
  • ground-motion intensity: The strength of earthquake shaking at different locations, which affects the extent of physical damage.
  • strike-slip faulting: A type of fault movement in which blocks of the Earth's crust slide horizontally past each other.