TREIF estimates $23.5m in losses from more than 450 claims

Guy Carpenter notes that the full extent of the quake’s impact on the industry is yet to be determined.

The 7.2 magnitude Hualien County, Taiwan earthquake brought out 472 claims which totaled $23.5m (TW$762m) in losses. Residential losses will be covered by the Taiwan Residential Earthquake Insurance Fund (TREIF) whilst commercial risks will be covered by private insurers.

Hualien County's tourism sector, vital to its economy, is projected to take two months to recover from the recent earthquake, with an estimated loss of $160m (TW$5.3b) in April alone, reported Guy Carpenter.

Although high-tech manufacturing plants were largely unaffected, some halted production briefly for equipment assessments. Property and business interruption loss evaluations are ongoing.

The renowned stone industry in Hualien County incurred losses of approximately TW$1b, with lingering effects from the 2018 earthquake. Taiwan Tobacco and Liquor Corporation sustained $430,000 (TW$14m) in damages, surpassing those from the 2018 quake.

Agricultural losses totalled $2.5m (TW$80.96m), primarily in Hualien County, impacting farming and fishery facilities. 

Guy Carpenter emphasised that not all losses are covered by earthquake insurance.

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Whilst Taiwan's catastrophe reinsurance programs have remained stable, the full extent of the earthquake's impact on the insurance industry, particularly in the high-tech sector, is yet to be determined, as assessments typically take weeks to complete.

Water supply has been fully restored, electricity to 99% of affected households, and natural gas repair is 90% complete. Communication tower repairs are scheduled for completion by April 11.

Schools suffered damage, with estimated reconstruction costs for affected institutions. While most students returned to school after a holiday, Hualien County anticipates a 2-month recovery period for its tourism industry, estimating substantial losses.

As of 10 April, the recent earthquake in Taiwan has resulted in 15 fatalities, all in Hualien County, with only one fatality due to a collapsed building. 

There were 1,155 reported injuries, with significant numbers in Hualien County, Taipei, New Taipei, and Taoyuan. Damage assessment shows 42 buildings marked with red stickers, mostly in Hualien County, and 70 buildings with yellow stickers.