EQECAT Estimates Insured Losses For Chile EQ of $3 to 8 Billion
01-Mar-10
EQECAT is providing this updated notification for the magnitude 8.8 earthquake that occurred off the coast of Chile on February 27, 2010. We estimate insured losses in the range of $3 to 8 billion, or 25% of the total economic losses. This loss represents 15 to 40% of the estimated insured limits for earthquake coverage.
Our estimate of insured losses considers the following:
- Property and casualty insurance premiums in Chile are about $4bn annually.
- Earthquake coverage will comprise a minority of P&C premiums.
- Coverage limits will be a large multiple of the annual premiums.
EQECAT notes that this initial estimate of insured loss is not yet informed by on-the-ground data or a geographic distribution of insured values at risks, and therefore the range is correspondingly wide. In addition, a large degree of uncertainty in the insured loss estimate stems from the extent of infrastructure damage. The speed of restoration of the transportation and utility networks can significantly impact Business Interruption losses.
Our previously stated estimate of economic damage in the range of $15 to 30 billion remains unchanged.
EQECAT is in touch with company personnel on-the-ground and will continue to monitor this event and region, and provide additional information as it becomes available.
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