Verisk estimates insured losses from the Kumamoto earthquake could reach up to JPY 340 billion (≈USD 2.1 billion)
Executive summary: Verisk modeled insured property losses from ground shaking and liquefaction caused by the Kumamoto earthquake, estimating a range of JPY 220 billion to JPY 340 billion (≈USD 1.4 billion–USD 2.1 billion) before recoveries under Japan’s earthquake insurance program. The estimate informs insurers and reinsurers about potential loss reserves and capital needs, and signals to regulators where the earthquake‑insurance program’s solvency may be examined.
Who is involved: Verisk (risk‑modeling firm), Japanese primary insurers and reinsurers, Japan’s earthquake insurance program regulators, and affected property owners.
Likely next: Insurers will likely update loss reserves; reinsurers may adjust retrocessional coverage; Japanese regulators could review the adequacy of the earthquake‑insurance scheme before claim payouts proceed.
Verisk’s catastrophe model estimates insured property losses from ground shaking and liquefaction caused by the Kumamoto earthquake to lie between JPY 220 billion and JPY 340 billion (approximately USD 1.4 billion–USD 2.1 billion), before any recoveries under Japan’s earthquake insurance program. The figure provides insurers, reinsurers and regulators with a first‑order estimate of the potential capital impact of the event. It highlights the exposure of Japan’s property‑insurance market and may trigger a review of the adequacy of the nation‑wide earthquake‑insurance scheme.
Timeline
- — Verisk Estimates Insured Losses from Kumamoto Earthquake in Japan Will Range Between JPY 220 Billion (~USD 1.4 Billion) and JPY 340 Billion (~USD 2.1 Billion) (GlobeNewswire)
Analysis — what this means
Sectors affected
- Property insurance
- Reinsurance
Key entities
Sources
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