A 7.1 magnitude earthquake struck Christchurch, New Zealand this past weekend, causing extensive structural damage, widespread power outages, gas and water supply disruptions, and transportation problems, according to the U.S. Geological Survey (USGS).  No tsunami alert was issued.

The earthquake’s proximity to Christchurch may result in New Zealand’s largest insured loss for many years, with early total loss estimates at $NZ2 billion, according to reports.  

The private insurance market is likely to be mainly exposed to commercial and industrial losses, as the New Zealand government provides residential earthquake protection. 

"The impact of a hurricane, a tsunami, or other natural disaster, can be devastating to an area, its economy and its people,” said Fletcher MacGregor, Natural Hazards Practice Leader, Marsh Risk Consulting. “Damage to homes, businesses and infrastructure can linger for weeks, months, or even years. The critical task for businesses, particularly those that operate in vulnerable regions of the world, is to ensure they have the plans and experienced personnel in place to mitigate the potential impacts of a natural disaster and return to normal operations as quickly as possible.”

Marsh’s Crisis Management, Emergency Planning, and Business Continuity Planning Practices work with companies worldwide to address a spectrum of issues surrounding a natural disaster – from planning, preparation and training to mitigation and recovery.