EQECAT Estimates Losses in Hundreds of Millions of Dollars for Haiti Earthquake

January 13, 2010

Oakland, CA

A large earthquake has occurred in Haiti.

Source: USGS

The event is reported to be centered about 10 miles from the capital city; Port-au-Prince and its ground motions are very severe for a large populace. The city of Carrefour is expected to be affected by ground motions at intensity IX (approximately 0.5g). Port-au-Prince and its environs are expected to see motions near intensity VIII (approx. 0.25 g). Current estimates are that up to 2 million people were affected by motions at this level or higher.

This is a tragic event - buildings in this region tend to be built with heavy materials (concrete, masonry) and with little or none of the lateral reinforcing needed for earthquake resistance. Therefore a number of building collapses will have occurred. Also, the occurrence of significant aftershocks will have exacerbated the damage. A smaller earthquake not centered in an urban area several decades ago in neighboring Dominican Republic caused several fatalities and many significant casualties. Likewise, this event will have caused several hundred fatalities.

While it can be challenging to estimate exposure values in developing countries such as Haiti, EQECAT estimates the economic damages from this event to be in the hundreds of millions of dollars. Due to expected better underwriting standards than general building standards, insured buildings will generally perform better than the typical building, but this earthquake is very severe, and even well-designed buildings could expect damage from this event.

EQECAT will update this note as more information becomes available.

For more information, contact:

PR@eqecat.com