Insurance Rate Differentiation of Multi-Hazard Shaking-Tsunami Loss Coverage for Subduction Earthquakes

Abstract

This study proposes a new method of determining financial exposure and insurance premium rate for multi-hazard earthquake-tsunami risks due to mega-thrust subduction earthquakes. Since tsunami risk is sensitive to site-specific attributes (e.g. elevation, site-to-shoreline distance, and topographical feature), such characteristics of properties should be taken into account to differentiate the insurance premium rates for different policyholders. To investigate this problem, a new performance-based earthquake-tsunami engineering tool is used. Influences of local tsunami-related risk factors on the financial risk exposure as well as insurance premium rates are investigated through a case study that focuses upon building portfolios in Sendai and Onagawa, Miyagi Prefecture, Japan.