We’re waking to reports of Pacific basin-wide tsunami alerts having been issued by numerous countries after a magnitude 8.8 earthquake occurred near the Kamchatka Peninsula of Russia this morning.A magnitude 7.4 foreshock preceded the significant 8.8 earthquake, which the USGS said has occurred close to the epicentre of a historic magnitude 9.0 quake back in 1952.There have been numerous earthquakes in the region in recent days.The magnitude 8.8 earthquake struck at 11.24am local time and has been followed by numerous earthquakes of magnitude 5.0 and higher.

At 8.8, the magnitude of this earthquake is said to be the joint sixth most severe in recorded history.Initially, reports suggested tsunami waves of 3 to 4 metres might be widely experienced around the Pacific basin, with countries including the United States issuing alerts and warnings to residents.Initial tsunami waves that hit the Russian coastline have been reported to be significant, with reports of damage experienced.

There are also reports of structural damage in the Kamchatka Peninsula region and Russia’s far east, with buildings damaged from the major earthquake’s shaking.For Japan, evacuation orders have been issued, but reports suggest tsunami waves of just 30 to 40 centimetres have struck the Hokkaido coastline so far.According to a BBC report, seismologist Dr Lucy Jones explained that, “the tsunami could damage harbours and waterfront property in Hawaii – and possibly in California – but it is not expected to cause a catastrophic loss of life anywhere in the Americas.” Predictions suggested that Hawaii could experience waves of 2 to 3 feet, while the west coast of the United States may see waves of 1 to 2 feet.

Hawaii’s governor recently said that a wave had been recorded passing through the Midway Atoll island between Japan and Hawaii at 6ft from peak to trough, leading him to say that the islands are still expecting meaningful tsunami effects.Residents of Hawaii are being urged to head for higher ground as tsunami waves approach, while warnings now stretch from south America, around the Pacific basin to Asia.Earthquakes of this severity can have widespread impacts, reaching far beyond the regions immediately affected by shaking, which this Kamchatka earthquake is now demonstrating.

At this stage it does not seem damage from this quake is going to be especially meaningful for the global insurance and reinsurance industry, but with the quake still impacting sea levels across the Pacific and the tsunami effect spreading further west, it remains to be seen if it becomes more of an event that would concern the sector.Japan was really the major concern for the reinsurance and perhaps insurance-linked securities (ILS) market, given the role of risk capital there in protecting against domestic earthquake risks means sector capital would also be on-watch for any impacts driven by a quake from a neighbouring region.Of course, there are a reasonable number of catastrophe bonds that potentially could have been exposed to such an event, had the tsunami caused significant damage, with Japan again seeming the most likely location for that to occur given its proximity to Kamchatka.

Cat bonds that cover earthquake risks tend to cover tsunami related damages as well.Although some, but not all, would require the quake event to have occurred in the specific region where that coverage is targeted, meaning tsunami wave damages from a quake in a neighbouring country may not affect them.This is an ongoing event at this time, with tsunami impacts only just beginning for Hawaii (4 foot waves reported so far) and even longer for the west coast of the Americas, should any sea level rise or waves spread that far.

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