AIR revises loss estimate from Japan earthquake/tsunami

AIR Worldwide has revised its insured loss estimate for the Mar. 11 Japan earthquake to a range of between $20 billion and $30 billion. Initially AIR estimated insured losses to range from $15 to $35 billion. The combined insured loss estimate includes insured losses from ground-shaking and fire-following of between $11 billion and $21 billion, and insured losses from tsunami of between $8 billion and $9.7 billion.AIR’s loss estimate includes payouts from the Japan Earthquake Reinsurance Co. Ltd and is net of government recoveries. “This is an unprecedented event in the history of seismology and earthquake engineering – never in history has a magnitude 9.0 earthquake been so well recorded instrumentally,” said Dr. Jayanta Guin, senior vice president of research and modelling at AIR Worldwide. “By independently estimating the loss due to the tsunami, the combined loss estimate avoids double-counting in the affected areas.”