Precisely how much life
insurers will pay out in claims relating to the earthquake and
tsunami that struck Japan on 11 March remains uncertain, with the
latest estimate from the Life Insurance Association of Japan (LIAJ)
now standing at $2.4bn.
The LIAJ’s estimate comes at
a time when Japan’s Fire and Disaster Management Agency’s official
estimate of total fatalities stands at just under
14,000.
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Indicating the uncertainty as
to what total claims paid will be, the association’s estimate is
below consultancy Towers Watson’s lowest estimate of $2.9bn. Towers
Watson’s upper estimate is $4.6bn.
The LIAJ has also announced
that life insurers in Japan would make full payment of
accident-related insurance money and benefits without applying
exemption clauses.
According to the LIAJ, in
general, life insurance policy conditions state that in the case of
earthquakes, life insurers may reduce or not make payment of
insurance money and benefits under-accident- related
riders.
