RMS releases the preliminary findings of a study into earthquake scenarios in densely populated areas in China...
Risk Management Solutions has released its preliminary results of a study into the impacts of the 1679 Sanhe-Pinggu Earthquake based on the 2007 population and property exposures of the Beijing, China area. The risk analysis was based on the new RMS® China Earthquake Model, scheduled for release in spring 2007.
The largest historical earthquake in the vicinity of Beijing, this magnitude 8.0 event centred 50 km east of Beijing brought destruction to the region in the early years of the Qing Dynasty.
While building standards have improved significantly since 1976, when the collapse of unreinforced masonry buildings in the Tangshan Earthquake killed over 240,000 people, the new RMS study has shown the far-reaching impact of a major event striking a highly commercialised and populated area of China. The RMS analysis indicates a potential economic loss of 800bn RMB ($100bn) throughout the region, over half of which would occur in Beijing alone.
A share of this loss would be borne by the insurance industry, as well as mortgage lenders who will be impacted by damage to uninsured properties.
"As cities across Asia have rapidly increased in population and commercial development, a much greater proportion of the overall population now lives in cities like Beijing. It is only a matter of time before an earthquake strikes one of these cities, potentially leading to devastating effects," commented Dr Weimin Dong, chief risk officer of RMS.
