$6.4 Billion Estimated Insured Losses in Japan’s Noto Peninsula Earthquake

The 2024 Noto Peninsula Earthquake, a magnitude 7.5 seismic event off Honshu’s west coast, has resulted in estimated insured losses of $6.4 billion, as reported by Karen Clark & Company (KCC). The earthquake predominantly affected Ishikawa, Niigata, Toyama, and Fukui prefectures. This earthquake was marked by shallow reverse faulting, a geological phenomenon where one strata of earth is thrust over another.

The quake was particularly devastating in several cities and towns, including Shika, Nanao, Wajima, Suzu, Anamizu, and Noto, recording the highest ground motion. It stands as the largest earthquake since 2015 and the deadliest since 2016 in Japan.

KCC’s analysis pointed out the vulnerability of Machiya homes in Ishikawa Prefecture. These traditional structures, constituting over a third of residential buildings, are prone to collapse due to their earthen walls, timber construction, and tiled roofs. Additionally, the long and narrow design of these homes makes them more susceptible to lateral forces during earthquakes.

Contrastingly, most other residential buildings, primarily 1- and 2-story wooden structures, have better earthquake resistance due to light metal reinforcements in their wooden frames. Nonetheless, they also faced severe damage in areas of significant ground motion.

KCC noted the impact of building age on earthquake resilience. In Ishikawa, a third of residential buildings date back to before 1981. Meanwhile, commercial and industrial buildings, mainly steel constructions, fared better due to their higher earthquake resistance. Despite this, residential property losses are expected to surpass those in commercial and industrial sectors.