Swiss: Japan earthquake 'will result in $1.2 bn claims'

21 March 2011

The world's second largest reinsurer has estimated the earthquake in Japan will result in it facing claims of $1.2 billion.

Bloomberg reports that Swiss Reinsurance has explained that cover for fire after a natural disaster is sold privately and is often reinsured.
The figure provided is the net of retrocession and calculated before tax, the organisation explained. However it noted the unfolding events at the Fukushima Dai-Ichi atomic power plant, in which operators are working to prevent a meltdown, will not have a significant effect on reinsurers.

The company said: "Coverage for nuclear facilities in Japan excludes earthquake shock, fire following earthquake and tsunami." It added the nuclear plant situation is unlikely to result in direct loss for the property and casualty insurance industry.

Reuters recently reported that the cost of recovery and reconstruction in the country following the earthquake and subsequent tsunami will cost more than $180 billion.

By Gary Cooper

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