August earthquakes cause billions of dollars in losses

August earthquakes cause billions of dollars in losses

Sep 12, 2014

 

Earthquakes caused significant disruptions to countries worldwide last month, highlighting the importance of disaster recovery (DR) capabilities.

San Francisco Bay experienced the strongest earthquake in 25 years on August 24, with a magnitude 6.0 tremor striking northern California.

A new report by Aon Benfield revealed the quake damaged infrastructure, property and wineries, as well as injuring 258 people.

According to the company, around 1,120 homes and buildings were structurally damaged in Napa alone, and economic losses are thought to have reached at least US$2 billion.

Unfortunately, earthquake insurance among residential property owners in Napa County is low (5.3 per cent), meaning insured losses will likely only be in the hundreds of millions of dollars.

Elsewhere, a 6.1-magnitude earthquake caused widespread devastation in the Yunnan Province of south-west China on August 3. Ludian County suffered the biggest impact as it was at the epicenter of the disaster.

Aon Benfield estimated the economic losses to be in the region of US$6.3 billion, with China's Ministry of Civil Affairs claiming 25,800 homes collapsed and a further 200,000 sustained some form of damage. Peru, Iran, South Africa, Algeria and Ecuador also recorded earthquakes in August, the company said.

Earthquakes don't only affect homeowners; the impact on local businesses can also be significant. This is particularly true when inadequate DR processes are in place.

Ensuring key IT infrastructure and systems remain online following an incident is vital for many organizations, which is why many business leaders opt for DR software such as standby databases for maximum protection.

This software can form an essential part of DR plans, allowing companies to switch over to an exact copy of a source database in the event the original database experiences problems.

Standby databases help protect businesses across a wide range of natural disasters, as well as hardware failures, software corruption and other incidents.

From our Blog

Subscribe to the Dbvisit blog


 

Related News

 

News RSS Feed