Earthquake hits New Zealand
A strong earthquake hit New Zealand’s South Island, causing strong ground motions and damage in Christchurch, New Zealand. Reported as a preliminary magnitude 7.4 event, the (revised) magnitude 7.0 event occurred at 4:35 AM local time on Saturday, September 4. The 12 kilometer deep earthquake occurred about 35 miles WNW of Christchurch and 200 miles south of Wellington, New Zealand.
Risk modeler EQECAT said that the earthquake is believed to have occurred on one of several regional strike-slip faults related to the Australia:Pacific tectonic plate boundary which transects the islands of New Zealand. This earthquake is in the general area of several large earthquakes that have affected New Zealand in the last century. Strike slip faults do not typically trigger tsunami and none is expected from this event.
Strong ground motions cover an area with a population exceeding 400,000 people, although the most severe ground motions were in the much less densely populated central portion of the state near the Canterbury plains cities of Oxford and Darfield. New Zealand building codes and practices include high levels of seismic resistant design and most buildings are expected to remain safe and usable, although seismic design does not preclude economic damage.
Pockets of damage are expected from an event of this severity, although the combination of a remote occurrence location and relatively robust building design are expected to prevent widespread devastation.
Significant uncertainties remain in understanding the focusing of earthquake ground motions from this event, but initial reports indicate the potential for significant levels of damage. At this time, earthquake-induced damage is expected to total to a range of from $1 to $4 billion (USD). At this level of estimation, the breakdown of damage is expected to be about half dwelling and one-half commercial occupancies.
Insurance Australia Group (IAG) said it has responded to more than 2,000 calls from people affected by the Christchurch earthquake.
IAG is the Australian insurer with the biggest exposure to the New Zealand market, operating under the State and NZI brands.
