NU Online News Service, Sept. 7, 1:00 p.m. EDT
Modelers estimate insured losses of between $1 billion and $4.5 billion from Saturday's magnitude 7.0 earthquake in New Zealand.
The damage from the earthquake, which rumbled the country's oldest city of Christchurch, is widespread but moderate in severity, according to catastrophe risk modeler AIR Worldwide.
Modeler Risk Management Solutions (RMS) and AIR said Christchurch's older masonry buildings suffered damage such as fallen walls and chimneys. Damage appears restricted to the Christchurch region, RMS said.
AIR puts the estimate of insured losses between $2 billion and $4.5 billion.
Modeler EQECAT expects damage of between $1 billion and $4 billion.
New Zealand Prime Minister John Key said early damage estimates were $1.4 billion.
RMS said industry losses will primarily be related to commercial and industrial losses. All residential property owners who buy fire insurance automatically buy earthquake coverage from the New Zealand Earthquake Commission, RMS said. The commission has a fund of nearly $4 billion as well as a reinsurance program. It is backed by the government if funds are exhausted, RMS reported.
The New Zealand Institute of Geological and Nuclear Sciences (GNS) said the earthquake occurred on a previously unknown fault line, RMS said.
The quake on Saturday (local time) is likely the most damaging to New Zealand since a magnitude 7.8 earthquake in Hawke's Bay in 1931, RMS said. There reportedly have been about 260 aftershocks, the largest being a magnitude 5.4 earthquake about 12 hours after the magnitude 7.0 event occurred.
The United States Geological Survey said the New Zealand quake is the 18th earthquake of magnitude 7.0 or higher during 2010 worldwide. The biggest was the magnitude 8.8 quake in Chile in late February.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.