Insurers face a long tail of small claims following the Queensland earthquake on August 16, according to Risk Frontiers.

The magnitude-5.6 event near Kilkivan in the Gympie region could lead to modest losses from claims for non-structural damage such as cracks in plasterboard and masonry veneer, tiles, parapets and chimneys.

Insurers may also receive business interruption claims after power outages affected about 14,000 properties.

Risk Frontiers notes the 1989 Newcastle earthquake, which killed 13 people, was the same magnitude as Kilkivan but caused $4 billion in total losses. The Insurance Council of Australia ranks it as the country’s third most devastating natural catastrophe.

The contrast shows how losses are shaped not only by quake size but also exposure density and building stock, the risk modeller says. Urban Newcastle has many masonry buildings, while rural Kilkivan has fewer – mostly timber – properties.

Queensland is among the states least likely to experience earthquakes, and Risk Frontiers says the threat of a damaging aftershock is low.