Seismic damage in NSW, Australia: Construction insurance, social, and economic consequences

Earthquakes in 1999 and 2000 in Taiwan, Pakistan, and Turkey draw attention to the possibility of an earthquake occurring in a center of population in many diverse locations. In 1992, there was a serious earthquake in Cairo, Egypt, and another in Saudi Arabia. There were fatalities in each of these earthquakes. The most serious and recent earthquake to affect Sydney occurred in December 1989. The center of that earthquake was in Hamilton near Newcastle, 100 kilometers north of Sydney. The office of one of the writers of this paper was destroyed in that earthquake. This paper documents examples of building failures during the 1989 earthquake in Newcastle, Australia. Postdisaster investigative processes are presented, relationships between the insurance companies and building owners are reviewed, and examples are included of repairs after the earthquake. The social and subsequent economic consequences in the decade following the earthquake are discussed. Readers in regions of frequent seismic activities are already familiar with many of the concepts presented in this paper. The value of the paper is the direct observations by the writers, following a rare event in an area not frequented by seismic activities.