BOSTON, Jan. 08, 2024 (GLOBE NEWSWIRE) — The Extreme Event Solutions business unit of Verisk (Nasdaq: VRSK) has estimated insured losses ranging from JPY 260 billion to JPY 480 billion (USD 1.8 billion to USD 3.3 billion) for the recent M7.5 earthquake that struck near the Noto peninsula in Ishikawa prefecture, Japan.
According to the United States Geological Survey (USGS), the earthquake occurred on January 1, 2024, and was caused by shallow reverse faulting in the Earth’s crust. While Japan is a seismically active region, this earthquake struck on the west coast where crustal deformation is accommodated in shallow faults.
Verisk highlights that shallow earthquakes tend to cause more damage compared to deeper ones, as the energy generated is released closer to the surface, resulting in stronger shaking. In this case, the coastal earthquake produced significant shaking on land and generated a tsunami.
The USGS states that the Noto Peninsula experiences lower rates of seismicity compared to the major subduction zone along the east coast of Japan. However, historical data reveals that 30 other earthquakes of M6 and larger have occurred within 250 km of the January 1 event since 1900.
The damage caused by the Noto Peninsula earthquake was extensive, particularly in Ishikawa prefecture, where heavy damage was concentrated. Additionally, other prefectures such as Niigata and Toyama experienced ground shaking and liquefaction. Tsunami waves over one meter high affected buildings along the shore, most significantly in Wajima, Suzu, and Noto.
It’s worth noting that Japan’s building codes are among the most advanced worldwide and have been consistently practiced since 1981. The seismic code requirements in the affected regions are higher than those in the southern part of Japan.
Verisk’s insured loss estimates do not encompass losses to uninsured properties, land, infrastructure, automobiles, business interruptions, workers’ compensation, civil engineering risks, marine cargo and hull risks, aviation risks, transit warehouse risks, movable all-risk, personal accident risks, loss adjustment expenses, losses from non-modeled perils, or demand surge effects.
Verisk (Nasdaq: VRSK) is a global data analytics and technology provider that partners with the insurance industry to enhance operational efficiency, improve underwriting and claims outcomes, combat fraud, and inform decision-making related to global risks. By leveraging advanced data analytics, software, scientific research, and deep industry expertise, Verisk supports building global resilience for individuals, communities, and businesses.
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Note: The estimated insured losses for the Noto Peninsula earthquake range from JPY 260 billion to JPY 480 billion (USD 1.8 billion to USD 3.3 billion) according to Verisk’s Extreme Event Solutions business unit.
