RMS estimates up to $300 billion economic losses from Japan ‘super cat’ event

RMS estimates the economic losses resulting from the March 11 Tohoku earthquake and tsunami in Japan will range between $200 and $300 billion.
The quake and tsunami “is a complex ‘super cat’ event, where the final costs will not only reflect the level of direct damage to property from strong shaking and the catastrophic tsunami, but will also involve other significant secondary consequences,” a release from RMS says.
The loss estimate represents approximately 4-5% of Japanese GDP.
The estimate includes losses resulting from earthquake shaking and tsunami inundation, the impact of disruptions in power supplies, evacuations and decommissioning several nuclear power stations. Specifically, beyond damage to property and infrastructure, the estimate includes the costs of interrupted business processes and ports and a reduction in industrial and manufacturing production.
Exposure to loss in this “super cat” event includes large-scale destruction of housing, agriculture, land contamination, auto and marine sectors, industrial production and infrastructure damage.
Only a minor proportion of the economic loss will be covered by insurance, RMS said in a release.