NU Online News Service, Sept. 15, 3:51 p.m. EDT
Insured losses from the Christchurch, New Zealand, earthquake could reach as much as $2.5 billion, according to a catastrophe modeling firm.
Risk Management Solutions (RMS) said it expects insured losses of between $1.5 billion and $2.5 billion from the earthquake in New Zealand earlier this month.
The catastrophe modeler said about two-thirds of the total insured loss from the Sept. 4 earthquake will be paid by the country's Earthquake Commission, which provides coverage of up to $73,385 (NZD $100,000) per building for residential owners who purchase fire insurance.
Modeler EQECAT has said it also estimates insured losses from the 7.0 magnitude quake of between $1.5 billion and $2.5 billion.
AIR Worldwide puts the estimate of insured losses between $2 billion and $4.5 billion.
RMS said its estimate for total losses includes those from personal lines--including losses covered by the Earthquake Commission--as well as commercial and industrial losses. It does not include damage to infrastructure, public buildings or uninsured property.
Losses in excess of what is covered by the Earthquake Commission will be covered by the private market, but RMS said it expects this amount is likely less than 10 percent of the total losses.
Private market losses are expected to range between $400 million and $1.1 billion, RMS said.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
