|
|
- Permanent Link:
- http://dpanther.fiu.edu/dpService/dpPurlService/purl/FI13022780/00001
Notes
- Summary:
- This report reviews the recent major earthquakes that took place in Haiti, Chile, New Zealand, Japan, Turkey, Italy, Mexico and the United States. Pre-disaster mechanisms, such as insurance, earthquake awareness among the general public, and earthquake modeling are the major issues addressed in this document. The cumulative catastrophic impact of earthquakes on society is overwhelming. Among all the natural disasters, earthquakes are potentially the most destructive in terms of both loss of life and property damage. The several massive earthquakes over the past two years have resulted in a devastating number of fatalities and injuries, as well as widespread property damage. Seismic events caused economic losses of over USD 276 billion in 2010 – 2011, yet much of the world is significantly underinsured, even the countries with high seismic risk. The report shows that the insurance industry’s contribution to reconstruction efforts differs dramatically from country to country. The earthquake in Japan caused economic losses of between $210 billion to $300 billion, but only 12% to 17% of the loss will be covered by the insurance industry. On the other hand, New Zealand’s 2011 quake event caused $15 billion in damages and as much as 80% will be covered by the insurance company. Low insurance coverage means economic losses of great magnitudes will require public sector funding by relief organizations or governments, and thus ultimately borne by taxpayers. Governments can play a role by enacting stringent building codes and mandating earthquake insurance, especially in high risk areas, while insurers can play a role by simplifying pricing structures. According to the report earthquake models are quite accurate in predicting the immediate physical damages caused by tremors, however, secondary loss factors, such as liquefaction and particularly business interruption should also be considered more comprehensively in earthquake models. Unfortunately, the low frequency of earthquake events, compared to other natural catastrophes, tends to shape the perception that earthquake risk is much lower than it actually is. Thus raising public awareness is sorely needed. Also, it is believed that insurance coverage will naturally rise over time as the developing nations of the world become more aware of the unique risks posed by quakes and as their economic exposure increases. ( English )
- Subject:
- Disasters and Insurance ( English )
- Citation/Reference:
- Bevere, L., Grollimund, B. (2012). Lessons from recent major earthquakes. Swiss Reinsurance Company (Swiss Re)
|
|
