The Tohoku Earthquake And Tsunami - Second Report

Five months have now passed since the 9.0 magnitude earthquake and ensuing tsunami devastated the Tohoku region of north-eastern Japan. By way of update to our original report dated 30 March¹ – in which we summarised the main lines of Japanese insurance business likely to be impacted by the disaster – we set out below an overview of:

(i) the factual situation in Japan since our original report; and

(ii) direct and reinsurance issues that have the potential to emerge as the focus gradually shifts from residential to commercial loss adjustment. This includes a brief overview of the characteristics of contingent business interruption cover as written by direct insurers in:

a. Japan²;