Major Japan quake not likely to cause major strains on insurers – Tokio Marine

Major Japan quake not likely to cause major strains on insurers – Tokio Marine | Insurance Business Asia

Insurance News

Major Japan quake not likely to cause major strains on insurers – Tokio Marine

No official estimates relating to the damage have been released as of yet

Insurance News

By
Kenneth Araullo

While there has been no official estimate of the damage of the recent major earthquake in Japan, Tokio Marine Holdings Equity Research indicated that the event is unlikely to cause significant strain on insurance companies.

A magnitude-7.6 earthquake off the Noto Peninsula on Japan’s northwest coast has resulted in the death of at least 30 people, with many more injured. The quake, which caused significant damage including toppling buildings and buckling roads, led to a fire in Wajima, one of the hardest-hit areas. Wajima, a city of around 23,000 people known for its lacquerware and fishing port, saw about 200 structures engulfed in flames, as reported by Kyodo News.

According to a Bloomberg report, rescue efforts continue in the region, located about 315 kilometres northwest of Tokyo, as aftershocks persist. The earthquake and its aftermath disrupted the New Year holiday for numerous families, forcing many into evacuation centres and leaving hundreds without access to fresh water.

The Japan Meteorological Agency lifted a tsunami warning for the Sea of Japan coast on Tuesday morning. Prime Minister Fumio Kishida announced the formation of a task force to aid in rescue and repair operations, highlighting the widespread damage from the quake.

The Ishikawa Prefecture confirmed that at least 30 people died due to the earthquake, with at least 15 casualties in Wajima. The largest tsunami following the quake, recorded in Wajima, reached approximately 1.2 meters.

The Noto Peninsula is not densely industrialised, but some major companies, including Murata Manufacturing Co., have production sites in the affected areas. Murata Manufacturing, with 13 plants in Toyama, Ishikawa, and Fukui, is currently assessing the impact.

The earthquake led to the suspension of some train services and the closure of power plants, roads, and an airport runway. Approximately 33,000 households were without power as of Tuesday afternoon, according to Hokuriku Electric. The quake also affected several thermal power plants in the region, with Hokuriku Electric Power Co.’s Nanao Ohta power plant and Jera Co.’s Joetsu power station halting operations due to the tremor.

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