BOSTON - Verisk (NASDAQ:VRSK), a global data analytics and technology provider, has estimated that the insured losses from the M7.5 earthquake that struck near Japan's Noto peninsula on January 1 could range between JPY 260 billion (USD 1.8 billion) and JPY 480 billion (USD 3.3 billion). This estimate comes after the United States Geological Survey (USGS) reported on the earthquake's occurrence due to shallow reverse faulting in the Earth's crust.
The seismic event, which took place on the west coast of Japan, a region less accustomed to high rates of seismicity compared to the east coast, caused significant damage across Ishikawa prefecture, particularly in Wajima city, as well as in neighboring prefectures such as Niigata and Toyama. Notably, the earthquake generated a tsunami with waves exceeding one meter, inundating buildings along the coast.
Japan's stringent building codes, which are some of the most advanced in the world, have been in place since 1981 and are particularly rigorous in the northern regions impacted by this earthquake. Despite these precautions, the shallow nature of the quake resulted in stronger shaking and more extensive damage than might be expected from deeper seismic events.
Verisk's modeled insured loss estimates do not account for various types of losses, including uninsured properties, land, infrastructure, automobiles, business interruption, workers' compensation, civil engineering risks, marine cargo and hull risks, aviation risks, transit warehouse risks, movable all risks, personal accident risks, loss adjustment expenses, and losses from non-modeled perils such as landslides. The estimates also exclude the potential increase in costs due to demand surge following the catastrophic event.
This information is based on a press release statement from Verisk, which plays a strategic role in assisting the global insurance industry with analytics and technology solutions. The company focuses on enhancing operational efficiency, underwriting, claims outcomes, and informed decision-making regarding global risks, including climate change and extreme events.
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