Kyodo News Reporting 1 trillion insurance cost seen in Earthquake insurance payments

Japan Times
Wednesday, March 23, 2011
¥1 trillion insurance cost seen
Kyodo News

http://search.japantimes.co.jp/cgi-bin/nb20110323a4.html

Earthquake insurance payments resulting from the massive quake that struck the Tohoku area could top ¥1 trillion, far higher than the previous record of ¥78.3 billion following the 1995 Great Hanshin Earthquake, according to some industry estimates as of Tuesday.

"Payments will not fall into arrears" because the government is required to cover part of the insurance payments under the quake insurance system, which is jointly run by the government and nonlife insurers, a General Insurance Association of Japan official said.

Eqecat Inc., a risk assessment agency based in the U.S., projected that upcoming insurance payments at between ¥650 billion and ¥1.2 trillion, while Goldman Sachs estimated they could reach up to ¥861 billion.

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Amazing! What insurance company can survive after this without government help that Japan has?