Friday’s devastating, magnitude 7.7 earthquake in central Myanmar has so far claimed over 3,000 lives, with estimates suggesting the death toll may even exceed 10,000, in what will be one of the deadliest natural catastrophes to hit the region, and the most powerful since the 1912 Maymyo earthquake. The event resulted in significant humanitarian impacts, exacerbated by the ongoing civil war.

The earthquake also caused notable damage in neighbouring Thailand, including the collapse of a high-rise building under construction in the capital of Bangkok, resulting in at least 13 deaths.

Significant economic losses can be expected from this event, although insured losses are expected to be minimal, reflecting low insurance penetration.

Friday’s tragic events occurred along the Sagaing Fault in Myanmar, one of the region's most active fault systems, stretching for more than 1,200km. This fault line has historically experienced significant earthquakes, with other notable M7.3+ events in 1931 and 1946, and six M7+ events since 1930.

Commenting on the situation, Andy Souter, head of Asia-Pacific, Howden Re, said: “This is a significant human tragedy. Unfortunately, there will be a notable protection gap highlighting the continuing need to bring more insurance capital into emerging markets. In comparison to primary perils such as typhoons and floods, earthquake risk in Thailand is considered comparatively low, although earthquake models for the region indicate that they are not unlikely. In areas like Bangkok with highly concentrated, high value properties, it does not take long for losses to accumulate.

"Typically, the rating for earthquake in Thailand is included within the overall rate for property with deductibles relatively low and similar to those for the main fire peril. Despite low seismic activity in Thailand and other countries in the region like Singapore, their vulnerability to earthquake risks from large, distant events should not be underestimated.”

Dr Myrto Papaspiliou, head of international catastrophe model research at Howden Re, added: “Of Thailand's 76 provinces, only 10, primarily in the northwest, are classified as earthquake risk zones. However, Bangkok's deep, soft alluvial soil amplifies shaking, making larger earthquakes from southern China and Myanmar felt in the city and potentially damaging. This was evident during the 2014 Chiang Rai Earthquake and, most notably, the 2004 Sumatra Earthquake, although the tsunami was a key driver in the latter case.”

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