Disaster-Relief Assurance and Insurance

Retrofitting at Tokyo University, 2014

Japan is one of the most earthquake-prone countries in the world. To dampen the earth's shaking, strict building codes require extra steel bracing, giant rubber pads and hydraulic shock absorbers.  Older and more vulnerable structures have retrofitting as seen in this photo taken at Tokyo University (right).  Japan has spent billions of yen developing the most advanced technology as protection against earthquakes and tsunamis.    

Evacuation routes were clearly marked all along this coastal trail in case of an earthquake and tsunami.  But NO place looked safe!

Tsunami warning signs, giant seawalls and clearly-marked escape routes are found in applicable places.  Along with practice drills, preparedness training, disaster kits, and instruction manuals, Japan is more prepared for a disaster than any other nation in the world.  But sometimes I wonder if citizens put too much faith in this training and technology, becoming lulled into a false sense of security.  A Japanese friend who moved to Tokyo 16 years ago said, "I am no longer concerned about earthquakes because our buildings have such good construction."  Many residents take comfort in their emergency supplies, building's engineering and government's ready response units.  On the other hand, a friend told us that his children will not attend a university in Tokyo due to the inevitable death and destruction following a massive quake.  "It is a risk we will not take," he said.  People respond quite differently to the always-present seismic threat.   

No Electricity. Start Climbing!

Naturally, newly-constructed buildings that boast the most-advanced technology rent and sell more easily than older structures.  Despite flaunting the most-advanced construction, there is still a down-side to living in a new high rise.   A Japanese friend said, "We moved from the 16th floor of a 33-story high-rise so that we won't have to climb stairs when the power is shut off and the elevator stops working after an earthquake." (Notice the anticipation in her words.)  She doesn't mind swaying in the sky, only climbing to great heights.   On the other hand, following the Tohoku earthquake, my friend's boss, a 63-year old woman, made the climb to her 30th floor apartment without complaint.  She saw it as "an opportunity to stay fit" and a small sacrifice when so many others were suffering.  

Post-earthquake, Christchurch, 2011

Like this store after the 2011 Christchurch earthquake (right), our home city of St. Louis has many historic buildings constructed of brick and masonry.  Unlike Japanese structures, collapse is nearly inevitable after a large earthquake.  Interestingly, Japanese people express more concern over the degree of damage their buildings will suffer, not whether the structure will entirely collapse.  Large urban areas like Tokyo and Kobe have spent enormous resources to retrofit old buildings and deploy the latest technology in new construction.  I wonder whether buildings in rural communities have the same level of earthquake protection.  I suspect not.  

Kobe Earthquake, Collapsed Highway, 1995

Destruction in a Kobe Home

Back in the 1960s the government and private insurance companies struck a deal permitting property owners to add earthquake riders to their fire insurance policies with any claims being paid out of the "Japanese Earthquake Reinsurance", a giant fund maintained jointly by the government and insurance companies.   Despite government urgings to purchase earthquake insurance, many people do not add the rider because it is expensive compared with perceived potential payouts, which take into account the depreciating value of the home or building at the time of the disaster. They also fear that in the event of a very large earthquake, the government and insurers will be incapable of meeting payment obligations.   I am told that businesses and institutions maintain a separate disaster fund so they will have the resources to rebuild.   (Note:  Fires are a great threat as a result of an earthquake.  Fire insurance will not pay for fire resulting from an earthquake unless the owner has both fire and earthquake insurance.) 

Professor Shima-San (left) explains the ground's movement at Kobe's Earthquake Memorial Museum, a site that both commemorates and educates the public about earthquakes and disaster prevention.  The museum also has an earthquake simulator that demonstrates an intensity level-7 earthquake for 40 seconds.  The shaking is severe.  The strongest I have felt is intensity 5 and hope that is the maximum EVER.