THE earthquake that struck Japan on Friday could be the most expensive in history.
While difficult to compare natural disasters in modern terms, the 1995 earthquake in Kobe, Japan, is widely considered the world’s most expensive natural disaster to date, with a $US100 billion ($99.3 billion) damage bill.

By comparison, the rebuilding effort in the wake of last month's Christchurch earthquake in New Zealand is currently estimated to cost as much as $NZ30 billion ($22 billion).
And closer to home, the Queensland Government said its floods and Cyclone Yasi are set to cost the state almost $1.5 billion, reported ABC News.



An earthquake in Chile was last year’s most expensive natural disaster in the world, with overall losses of $US30 billion ($29.7 billion) and insured losses of $US8 billion.

Economists say it is still too early to assess the full cost of the destruction from the 9-magnitude quake and the resulting tsunami that laid waste to the country's north-eastern coast and triggered an atomic emergency.
In an address to the nation, Prime Minister Naoto Kan warned that Japan was facing its biggest crisis since the end of World War II.

The death toll, officially still below 2000, is certain to rise substantially, with one hard-hit prefecture likely to have as many as 10,000 dead.

"The quake is expected to have considerable impact on a wide range of our country's economic activities," Chief Cabinet Secretary Yukio Edano said.



Catastrophe modeling company Eqecat estimates that the cost of the earthquake, tsunami and fires will reach at least $US100 billion. This includes $US20 billion in damage to homes and $US40 billion to infrastructure.
Risk analysts AIR Worldwide said the earthquake alone would cost up to $US34.6 billion. It has not estimate losses from the tsunami or the damage to the nuclear plants.

Adding to the cost is the fact that the number of Japanese businesses and homeowners with earthquake insurance was as low as 14 per cent.

The 1995 earthquake in Kobe, Japan, is the most expensive in history, with total losses of $US100 billion but insured losses of only $US3 billion.

The Insurance Information Institute predicted that the losses from this latest disaster would exceed this figure.
The Bank of Japan plans to pump "massive" funds into markets today in a bid to help them stabilise following the linked disasters, Dow Jones Newswires said overnight.

Tokyo's benchmark Nikkei index is meanwhile expected to tumble, with the index possibly breaking the psychologically important 10,000 level.

Many top Japanese firms have said they are suspending operations. Automakers Toyota, Nissan and Honda have announced the total suspension of production in Japan until at least Monday.

Sony Corp suspended production at its six plants in Miyagi Prefecture, which was hard hit by the quake, and neighbouring Fukushima Prefecture, it said, adding it has evacuated all employees there.

Yesterday Mitsubishi said it would halt production at all three of its domestic plants today and tomorrow. Suzuki motors also said it was suspending all domestic plant operations today.

The immediate prospects for Japan's atomic power industry are a key concern following a radioactive leak and an explosion Saturday at the ageing Fukushima No. 1 atomic plant located 250 kilometres (160 miles) northeast of Tokyo.

Japan's nuclear industry provides around a third of the nation's power needs, and the shutdown of reactors will lead to a shortfall in electricity supply that will make power outages necessary, the Government warned.


AFP