New estimates of insured losses from the Japanese earthquake and tsunami have come in between $US18 billion ($17.1 billion) and $US26 billion ($24.7 billion).

Risk Management Solutions says total insured property losses from the March disaster are expected to be at least $US18 billion, rising to $21 billion ($19.96 billion) once life and health insurance losses are included.

Total losses for the insurance sector could reach up to $US34 billion ($32.3 billion), RMS said.

Chief Research Officer Robert Muir-Wood says the calculation of losses is difficult because of Japan’s insurance arrangements.

“Insured exposure in Japan is a complex landscape of coverage, varying considerably by class of exposure and line of business,” he said.

The biggest challenge to loss modelling the impact of the magnitude 9.0 “Tohoku event” is not the details of the property damage itself, “but rather sampling and modelling the underlying pattern of insurance take-up rates and restricted terms of coverage”.

The size and breadth of the disaster has hit insurers and reinsurers worldwide. The Tohoku event is likely to cost Munich Re about €1.5 billion ($2.1 billion) in claims, Swiss Re about $US1.2 billion ($1.17 billion), AIG at least $US700 million ($685 million), and Ace $US250 million ($244 million).

Flagstone Re, now on ratings watch by Moody’s after releasing estimated losses from the Australian floods and Christchurch earthquake, released a loss estimate of $US80-$US130 million ($76 million-$124 million) from the Japanese quake, while Montpelier Re estimates pre-tax net losses from Japan of around $US126 million ($120 million).

Bermudian reinsurer Arch is facing Japan-related claims of $US60-$US100 million ($57 million-$95 million).

QBE is exposed to about $US125 million ($123.9 million) in net insurance claims from the earthquake and tsunami.