Verisk (Nasdaq: VRSK) estimates insured losses of between JPY 220 billion (approximately $1.4 billion) and JPY 340 billion (approximately $2.1 billion) from a magnitude 6.8 earthquake that struck near Kumamoto City on Japan's Kyushu Island on July 28, according to a press release from the company's Catastrophe and Risk Solutions group.

The estimates are before any recoveries under Japan's earthquake insurance program and cover insured physical damage to residential, commercial, industrial and mutual property risks, including structures and contents. The estimates are dominated by damage from ground shaking, with a smaller contribution from liquefaction.

According to the U.S. Geological Survey, the earthquake occurred south of Kumamoto at a shallow depth of approximately 10 kilometers and resulted from shallow strike-slip faulting within the Eurasian Plate. The region was previously affected by a magnitude 7.0 earthquake in 2016 that caused widespread property damage and loss of life.

Authorities reported hundreds of damaged homes and commercial buildings across Kumamoto Prefecture, with the strongest shaking recorded in Uki City and Hikawa Town. Approximately 48,000 households experienced power outages following the event, and transportation networks, including highways, bridges and rail infrastructure, sustained damage.

Several semiconductor, electronic and automotive facilities in the region temporarily suspended operations to conduct inspections and damage assessments.

Verisk's loss range reflects uncertainty related to fault slip distribution, ground-motion intensity, damage estimation and earthquake insurance take-up rates in Japan. The estimates exclude losses to uninsured properties, infrastructure, automobiles, business interruption, and certain non-modeled perils such as landslide and fire following.