Large Magnitude Events We appear to be experiencing a global cluster of large-magnitude earthquakes.


“If you are in one of those overdue areas, then you should be thinking carefully about preparing insuring and getting ready.” Laurie Johnson, Lexington Insurance


Since the 2004 earthquake in Sumatra, there was a magnitude 9 earthquake in Japan, 8.8 in Chile and 7.9 in China. Although we currently lack a model that definitively says these earthquakes are related, we can see that within the 100-year record from which to determine if there are global trends, there was a similar spike in the occurrence of large earthquakes of magnitude 8.6 and greater in the 1950s and 1960s. If we are in another period of increased activity of large magnitude events, important questions must be addressed, including, among others, how to prepare for events in vulnerable areas that are overdue — including how to transfer risk associated with such events.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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