Stroock Special Bulletin
"Reinsurance Implications of the Japanese Earthquake"
Following the March 2011 earthquake and tsunami that caused significant damage throughout Japan, Stroock released a Special Bulletin discussing potential insurance and reinsurance issues that might result once insurance claims relating to those devastating events were presented. In light of the property damage and potential business interruption caused by the April 15, 2016 Japanese earthquake, we are recirculating that Stroock Special Bulletin, as the issues it raised and topics it discussed might once again be at the forefront in dealing with resulting insurance and reinsurance claims.
As is common after an event that produced significant insurance and reinsurance claim activity, following the March 2011 Japanese earthquake, many insurance companies modified their contractual language, including clarification of the treatment of aftershocks and business interruption / contingent business interruption claims. It is, therefore, critical that insureds, insurers and reinsurers facing potential claims resulting from the recent Japanese earthquake carefully review their policy (or reinsurance agreement) language as a starting point to determine coverage.