The largest earthquake for 2009 to date occurred on 29 September in the Samoan Islands. It measured 8.0 mms (moment magnitude scale) and generated a tsunami, or several according to media reports, causing damage in Samoa, American Samoa and Tonga. The death toll is around 200 persons.
Large waves with no major damage extended to the coasts of Fiji, the northern coast of New Zealand and Rarotonga in the Cook Islands.
A further earthquake off the southern coast of Sumatra, Indonesia followed on 30 September, measuring 7.6 mms. After shocks and a tsunami damaged around 250,000 houses and the growing loss of life tally is around 1,000 persons.
Both earthquakes were along a single fault line known as the “Pacific Ring of Fire”.
Many countries in, and bordering, the Pacific Ocean issued several tsunami alerts, including Australia & New Zealand.
While international aid and support flows into these areas and discussion of early warning systems continues, it seems many were saved by church bells ringing, other warning systems and the lessons from Banda Aceh, Indonesia.
Inevitable comparisons have been made with the devastating Boxing Day Tsunami off the west coast of Sumatra, Indonesia, on 26 December 2004. With a magnitude between 9.1 and 9.3 mms, the combined death toll was approximately 230,000 with more than 1,000,000 people displaced.
Initial insurance estimates of the September losses are around US$20million.
Once again the devastation is not mirrored by the insured costs. We extend our sympathy to all those affected by these tragedies.
Australia is not immune to seismic activity.
Earthquakes, with devastating effects, have occurred in Australia and have been the subject of insurance claims e.g. a report by Emergency Management Australia advises the earthquake in Newcastle on 28 December 1989 left 13 dead, 160 insured, 200,000 affected and 1,000 people homeless. The insurance cost at the time was estimated at $1,124m.
News reports in September 2009 indicate a Melbourne University geologist Professor Joyce advised an Australian volcanic eruption is overdue!
If working in claims has taught us anything it is to expect the unexpected. Thankfully the events described above are infrequent but other events including fire, flood, storm, etc occur with seemingly increasing regularity. A well constructed insurance portfolio is a vital risk management tool to assist recovery from such disasters.
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Claim Solutions Pty Ltd
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