The magnitude 7.3 earthquake that struck off the coast of Japan last week is expected to cost insurers $2-$4 billion in property losses, according to Verisk Extreme Event Solutions (formerly AIR Worldwide).
Verisk said $400-$820 million of the losses from the March 16 earthquake can be attributed to commercial and industrial properties, citing reports that more than 1,000 buildings were damaged in the Fukushima and Miyagi prefectures. Other losses include power and water outages; damage to highways, rail lines, viaducts and other infrastructure; short-term cancellation of some train service; and significant supply chain and production interruption.
Verisk’s insured loss estimates include insured physical damage to onshore property (residential, commercial/industrial, mutual), both structures and their contents, and from ground shaking, fire-following and liquefaction.
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(Photo: Kyodo News via AP)