Japan disaster: Insured losses at $15-32 billion

Tsunami survivors cook and eat in front of their damaged house. -- PHOTO: AP/KYODO NEWS

WASHINGTON - JAPAN'S devastating earthquake and tsunami last week have resulted in insured losses of between US$12 and US$25 billion (S$15.4 and S$32 billion), risk assessment firm EQECAT said on Wednesday.

EQECAT said the epic magnitude-9.0 quake that struck Japan on Friday and the ensuing massive tsunami were piling up 'significant losses' to the insurance industry.

'EQECAT estimates total insured losses at US$12-US$25 billion,' the company said. 'This loss estimate encompasses the effects of earthquake shaking, ensuing tsunami and fires, and losses to automobiles, marine, life, and personal accident insurance lines,' it said.

But the loss estimates did not include the developing nuclear crisis as Japan raced to prevent a catastrophe at quake-stricken nuclear plants.

'These estimates do not account for losses associated with the current nuclear emergency at power plants in the region,' the firm said.

EQECAT estimated that between US$2.0 to US$4.0 billion of the insured losses was expected to be borne by the government's Japan Earthquake Reinsurance Pool, reducing the total losses to non-life property insurers in Japan. -- AFP