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Japan earthquake estimated to cost insurers $6.4 billion: report

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Japan earthquake estimated to cost insurers $6.4 billion: report

If nothing happened, insurance company get money when it goes on the other way, insurer get money. That's how insurance works.

3 ( +9 / -6 )

It's pretty hard to be sympathetic to companies that otherwise just sit there and collect money that is never given back. It's even harder when you realize some of these companies will probably try to seek bankruptcy protection to avoid paying, or resort to dirty tricks like some did in the Tohoku Disasters ("Your house was destroyed by the tsunami, not by the earthquake, so earthquake insurance doesn't cover it!" or what have you).

4 ( +9 / -5 )

Insurers contracted to take on this risk, nothing to debate.

All should be mindful of earthquake risk, older single-family homes built on soft soil close to water = high risk.

People willingly 'assume' this housing risk because it's less expensive. Until the you know what hits the 'fan'

6 ( +9 / -3 )

People pay very big money for this insurance.

Pay up without conditions.

11 ( +11 / -0 )

Japan earthquake estimated to cost insurers $6.4 billion: report

As opposed to $8,919,003,240.00 the Tohoku earthquake or 1.29 trillion Japanese yen

4 ( +4 / -0 )

As opposed to $8,919,003,240.00 the Tohoku earthquake or 1.29 trillion Japanese yen

You see taxpayers insured TEPCO meltdown at Daiichi, as insurance companies wouldn't take on the risk!

Naturally TEPCO couldn't 'self-insure', not a bad biz model, heads we win, tails you the taxpayers loose.

We were just lucky, Shika was offline. Expect it'll stay offline a long time given the likely damage it sustained.

Japan's still willing to take this nuclear risk because it's 'cheaper'. Until the you know what hits the 'fan' again!

0 ( +3 / -3 )

That car looks…..looked brand spanking new.

Horrible situation all around.

3 ( +3 / -0 )

That car looks…..looked brand spanking new.

Yes, but they still can't park their car there.

0 ( +2 / -2 )

That car looks…..looked brand spanking new.

Nissan Marche, one of the cheapest lowest quality cars money can buy, but thankfully it looks like the driver and any others could survive!

5 ( +6 / -1 )

Insurance companies….they can pay out. They force us to pay everyday.

6 ( +7 / -1 )

I’m with Smith on this. It won’t cost the insurance companies a single penny: they’ll just claw it all back in increased premiums, like they’ve always done.

Nissan Marche

Nissan Juke. Fixed that for you.

8 ( +8 / -0 )

Nissan Marche

Nissan Juke. Fixed that for you.

Excellent catch, a sporty "Marche" if you will but every bit equal in its low quality!

1 ( +3 / -2 )

Insurance companies having a tough time these days if you look at their widespread credit downgrades, weather, catastrophic and covid have badly damaged their balance sheets. Plus, huge, fixed income write downs with rising rates for many...real blood bath.

But pretty sure nobody's feeling too blue on their behalf!

0 ( +2 / -2 )

People would need to have separate earthquake insurance.

-7 ( +1 / -8 )

Many people do not have earthquake insurance. Too expensive.

-4 ( +2 / -6 )

People would need to have separate earthquake insurance.

Exactly, projected costs to insurers based upon know policies contracted with 3rd parties, like homeowners, whether single family residences, multi-family structures or commercial properties etc.

Larger buildings usually have 'umbrella' coverage for all units, except inside unit itself. Mansion owners need separate policy to cover damages inside their unit.

2 ( +2 / -0 )

Earthquake insurance is too expensive in Shin Okubo.

-1 ( +2 / -3 )

Average annual household expenditure on fire and earthquake insurance premiums per household in Japan from 2014 to 2022

https://www.statista.com/statistics/1289900/japan-annual-household-expenses-fire-and-earthquake-insurance-premiums/#:~:text=Annual%20expenses%20for%20fire%20and,household%20in%20Japan%202014%2D2022&text=In%202022%2C%20households%20in%20Japan,increased%20by%20about%20400%20yen.

In 2022, the ownership ratio of earthquake insurance on dwelling risks among households in Japan stood at 35 percent, up from 34.6 percent in 2021.

https://www.statista.com/statistics/746610/japan-ownership-ratio-earthquake-insurance-on-dwelling-risk/#:~:text=In%202022%2C%20the%20ownership%20ratio,from%2034.6%20percent%20in%202021.

The cost of earthquake insurance depends on the area and the building.

https://japanpropertycentral.com/2018/01/how-much-does-earthquake-insurance-cost-in-japan/

0 ( +3 / -3 )

Thanks. Very informative. Does that apply for tsunami too? Fire and earthquake are not the only calamity one can experience in Japan.

The cost of earthquake insurance depends on the area and the building.

Obviously. Mountains and cities are very different.

0 ( +3 / -3 )

Elvis is here

Thanks. Very informative. Does that apply for tsunami too? Fire and earthquake are not the only calamity one can experience in Japan

According to you, there wasn't a tsunami.

The tsunami is covered by earthquake insurance.

Earthquake insurance indemnifies against damage caused by fire, destruction, burying or washing away, resulting from an earthquake or volcanic eruption or a tsunami following either of these events

-2 ( +2 / -4 )

Twenty-five minutes after the New Year's Day earthquake, a tsunami several metres high barrelled into Shiromaru, leaving a trail of destruction for the Japanese coastal community's mostly elderly residents.

https://www.france24.com/en/live-news/20240106-japanese-villages-wait-for-help-after-quake?utm_source=flipboard&utm_content=topic%2Fjapan

0 ( +3 / -3 )

generally speaking, single family residential earthquake insurance is cost prohibitive, while multi-family i.e. mansion dwellings quite reasonable, both building umbrella policy and individual unit specific policies

If you know serious people in the insurance industry, they ALL live in mansions FYI/see above.

3 ( +3 / -0 )

Oh no won't someone think about the insurance companies

1 ( +2 / -1 )

According to you, there wasn't a tsunami.

What relevance does that have to the discussion?

-2 ( +1 / -3 )

Good. Let them pay. Japanese Insurance companies are the most callous in the world. They will find any reasons NOT to pay the insurance, and if they do, they usually raise it after by a very huge amount.

Remember the 2011 tsunami where they refused to pay for the houses swept by water?

Since then, zero respect for them.

1 ( +1 / -0 )

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