While the total economic losses of the devastating Tohoku earthquake are substantial, the Japanese insurance industry is expected to withstand this catastrophic event without significant financial impairment, according to Fitch Ratings.
A close look at residential earthquake insurance coverage in Japan reveals two systems that are polar opposites in terms of how they insure and reinsure earthquake exposure. Despite their differences, both systems achieve results that enable them to compensate claimants while maintaining solvency.