Eqecat says $3bn - $8bn of insured damage or 25% of total
Catastrophe risk modelling firm Eqecat said insured losses from the earthquake in Chile could reach $8bn, but that it won't have a big impact on reinsurers or the pricing of insurance, Dow Jones reports.
Insured losses will be about 25% of the total economic loss. The company said the loss, which will be between $3bn and $8bn, represents 15-40% of the estimated insured limits for earthquake coverage.
Eqecat said the economic damage could be 10% to 15% of Chile's gross domestic product.
Macquarie analyst Bill Yankus said: "We do not foresee this as a potential pricing catalyst for the [reinsurance] industry."
Bigger losses than Haiti
Chile's insured losses will far exceed those in Haiti because the country has more private insurers. “The more advanced the economy, the larger the catastrophe losses," said Robert Hartwig, president of the Insurance Information Institute.
About 90% of homeowners in Chile have property policies that cover earthquakes, Hartwig said, citing information from Axco, an independent supplier of global insurance market information. Only 12% of homeowners in California have such coverage.
No comments yet