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Daily Insurance Industry News
Wednesday 23rd of May 2018
March 15, 2010

Chilean earthquake could see insured losses of $8bn

by Richard Kilner

Story link: Chilean earthquake could see insured losses of $8bn

Stephen Jackson, MD of Latin America for Cooper Gay, has given his assessment of the Chilean earthquake on the (re)insurance market.

At present, Jackson has said, the insured losses will be between $2bn and $8bn, and are most likely to be from $3bn to $5bn.

If the losses are as high as expected then the earthquake will become the most costly in Latin America’s history, surpassing 2005’s Hurricane Wilma.

Wilma affected a smaller area, hitting Mexico’s Cancun region, whereas the earthquake affected an area of 900 square miles.

In addition, Chile is amongst Latin America’s most developed nations, and as such has a higher uptake of insurance, increasing losses for the industry.

Jackson is cautious about the prospects of the earthquake changing the market, but warned that if losses are at the top end of estimates then numerous global programmes could be hit.

Recent years have been mixed for the reinsurance sector, with 2009 seeing low insured losses totalling just $22bn, according to Munich Re.

However, 2008 was a very costly year, with Guy Carpenter blaming a very active hurricane season and Munich Re citing the Sichuan earthquake that struck China.

 

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