Verisk's Catastrophe and Risk Solutions group has estimated insured losses of the 6.8 magnitude earthquake that struck near Kumamoto City in Japan on 28 July to be between JPY220bn ($1.4bn) and JPY340bn.
According to a statement, Verisk’s insured loss estimates are dominated by damage from ground shaking, with a comparatively small contribution from other modelled earthquake perils. The loss range reflects uncertainty related to fault slip distribution, ground-motion intensity, damage estimation and earthquake insurance take-up rates in Japan.
The company’s estimates include insured physical damage to residential, commercial, industrial and mutual property risks, including both structures and contents.
The estimates exclude losses to uninsured properties, infrastructure, automobiles, business interruption, workers’ compensation, marine and aviation risks, loss adjustment expenses, demand surge and losses arising from certain non-modelled perils such as landslide and fire following.