EQECAT releases total insured loss estimate from Japanese earthquake

EQECAT has released its estimate of total insured losses from the March 11 Japan earthquake and tsunami to between $12 and $25 billion. 
The largest component of the insured loss will be covered by the property insurance market, which provides earthquake insurance to individuals and business in the country, EQECAT reports.
Roughly $2 billion to $4 billion of the total insured loss is expected to be ceded to the Japan Earthquake Reinsurance Pool (JERP), reducing the total loss to non-life property insurers in Japan, the catastrophe modeler notes.
JERP has a published claims paying capacity of $25 billion.
The loss estimate encompasses the effects of earthquake shaking, ensuing tsunami and fires, and losses to automobiles, marine, life, and personal accident insurance lines.
It does not account for losses associated with the nuclear emergency at power plants in the area.
The estimated market loss by line of business is:
• earthquake shake: $8 to $ 15 billion, with an estimated 25% ceded to JERP;
• auto: up to $1 billion;
• marine: $1 to $3 billion;
• life: $2 to $3 billion; and
• personal accident: $1 to $2 billion.
The Fire and Disaster Management Agency said the number of buildings completely or partially destroyed by the earthquake had reached 75,000 as of March 14.