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DISASTER MANAGEMENT
Japan battles nuclear, humanitarian crisis

AIG unit forecasts Japan quake loss of $700 mn in Q1
Washington (AFP) March 18, 2011 - Insurer AIG said Friday that Japan's massive earthquake and tsunami disaster would cost its Chartis subsidiary $700 million in the first quarter of 2011. AIG said the property casualty insurance unit would be hit with another $200 million in pre-tax insurance losses from other disasters, including the January New Zealand earthquake, and huge floods in Australia and Brazil. The preliminary Chartis loss estimates from the Japan disaster excluded AIG's general insurance operations in Japan, it said.

It said the maximum loss it could incur from those operations would be $575 million, mainly from its participation in the Japanese government's earthquake insurance pool for private homes, which holds about $500 million in AIG reserves. On home losses, it said, "the industry loss remains unquantified at this time." "The catastrophe in Japan has affected people, their homes, infrastructure, and businesses both in and outside of Japan, and our industry is working hard to quantify the complex impact of the devastation, a process that will take some time," said AIG chief executive Robert H. Benmosche in a statement. "As a result, our preliminary loss estimate will change as the industry losses from (the government insurance pool) for earthquake damage to personal dwellings become known and other information becomes available as the situation in the quarter evolves."
by Staff Writers
Tokyo (AFP) March 19, 2011
Japan battled a nuclear and humanitarian crisis Saturday, with engineers desperate to restore power to a stricken power plant in what the UN's top atomic expert said was a "race against time".

Half a million people made homeless when the huge tsunami razed Japan's northeast coast were suffering in appalling conditions, struggling to stay warm in freezing temperatures and with scant supplies of food and fuel.

But Prime Minister Naoto Kan promised the traumatised nation: "We will overcome this tragedy and recover... We will once more rebuild Japan."

The confirmed dead from the earthquake and subsequent tsunami on March 11 hit 6,911, with more than 10,000 unaccounted for, making it Japan's worst natural catastrophe since the 1923 Great Kanto Earthquake, which killed over 142,000 people.

A moment of silence was observed at 2:46 pm Friday, exactly one week after the 9.0-magnitude quake struck.

At one emergency shelter in the town of Yamada, in ravaged Iwate prefecture, hundreds of elderly survivors quietly stood and bowed their heads. Many of them wore face masks and overcoats. Some wiped away tears.

Global concerns remained focused on the crippled Fukushima No. 1 plant, with radiation fears triggering an exodus of foreign nationals, particularly after Britain, France and others advised their citizens to leave Tokyo.

International Atomic Energy Agency (IAEA) chief Yukiya Amano, who was visiting the country, said the crisis at the nuclear facility, where there have been fires and explosions, was a "very grave and serious accident".

But an expert at the UN's atomic watchdog said current radiation levels in Japan did not pose any harm to human health.

The IAEA sent a radiation monitoring team to Japan to help authorities determine whether any dangerous radiation had been released from the stricken plant 250 kilometres (155 miles) northeast of Tokyo.

Nevertheless, Japan's nuclear agency hiked the accident level to five from four on the international 0-7 scale of gravity for atomic accidents, an admission the crisis had at least equalled the US Three Mile Island accident in 1979.

Amano emphasised that Japan must reach out for help, after criticism authorities had not issued information fast enough and fears that a larger radiation leak might contaminate the 12-million-strong capital.

"It is important that the international community, including the IAEA, handles this jointly," he said in Tokyo. "Especially cooling (the reactors) is extremely important, so I think it is a race against time."

Japan has said radiation levels from the plant pose no health threat outside a 20-kilometre exclusion zone, despite slightly elevated levels in Tokyo earlier in the week.

The elevation of the accident level to 5 indicates "an accident with wider consequences", according to the International Nuclear Event Scale (INES). The world's worst nuclear disaster, at Chernobyl in 1986, rated a 7.

Many nations shifted embassies out of Tokyo, and the mood grew jittery even far from Japan, with panic-buying of iodine pills in the United States, and Asian airports scanning passengers from Japan for radiation contamination.

The capital's usually teeming streets were quiet, although some residents headed to work as usual. The city's neon glare was dimmed at night, in line with a power-saving drive forced by shutdowns at other atomic plants.

"This town has become so lonesome at night, as many stores keep the lights off and close early," said Shin Fujii, who runs a Spanish restaurant where custom has slowed to just a few diners a day.

"As I try to get as much information as possible about the nuclear accident, I also see baseless rumours on the Internet as well. I just try to do the best I can."

Kan sought to rally the nation in a television address Friday evening, again recalling its post-World War II recovery and promising "firm control" of the crisis by the government despite "huge difficulties" at the power plant.

"We are in a situation in which this crisis is truly testing us as a people," the premier said.

"While we have been called a small island country, we were able to miraculously rebuild after the war. With the power of the people, we will rebuild this country."

A major international relief operation was under way for the homeless and millions left without water, electricity, fuel or enough food in the stricken northeast.

But thick snow has covered the wreckage littering obliterated towns and villages, all but extinguishing hopes of finding anyone alive in the debris and deepening danger and misery for survivors.

At the Fukushima plant, workers conducted water cooling operations Friday and early Saturday using fire trucks in a race to bring overheating at the plant's reactors and fuel storage tanks, known as containment pools, under control.

If the fuel is exposed to air, it could degrade further and emit dangerous levels of radioactivity.

Disaster teams managed to get a power line onto the site in an effort to reactivate crucial water pumps to cool overheating reactors and prevent a calamitous meltdown.

"The power cable is near. We would like to speed up this operation as we can then use it to speed up the rest of what we have to do," said chief government spokesman Yukio Edano.

But nuclear expert John Price, formerly of the Safety Policy Unit of Britain's National Nuclear Corporation and now a professor at Australia's Monash University, said that restoring power could be difficult.

"The problem is we don't know whether connecting up those wires is actually going to make a difference -- there's other failures in the area as well," he told AFP.

"I wouldn't say it's out of control but they haven't gained full control yet."



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Tsunami takes grim toll on Japan's elderly
Miyako, Japan (AFP) March 18, 2011
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