Bloomberg Markets reported on the estimate.

Japan's recent major earthquake has triggered insurance claims that Bloomberg Intelligence estimates may exceed the average of the country's six previous major tremors. The report focuses on potential payout volumes.

The average claim for those prior events is 175 billion yen ($1.1 billion). This figure represents the mean of claims recorded after the 1995, 2004, 2011, 2016, 2018, and 2023 quakes.

BI's analysis indicates that this week's claims could surpass that benchmark, signaling a potentially higher financial impact for insurers operating in Japan's seismic zone.

The estimate underscores the importance of evaluating exposure and reserves, as insurers must prepare for significant payouts following seismic activity.

The analysis also highlights the role of reinsurance and capital markets in supporting the insurance sector against large losses.

Overall, the projected exceedance of the $1.1 billion average could prompt adjustments in underwriting, pricing, and risk management strategies within the Japanese insurance industry.

The findings provide insight into potential economic effects of natural disasters on financial stability.