Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • April 2016
04

Insurers face up to $850m of losses from Ecuador earthquake

Open-access content 22nd April 2016

Insured losses resulting from an earthquake that struck Ecuador on 16 April will be between $325m (£226m) and $850m (£590m), according to AIR Worldwide.

2


The country is still evaluating the casualties and widespread losses that resulted from the magnitude 7.8 earthquake. 

Citing from the Ecuador's Secretariat for Risk Management, AIR Worldwide said 570 had been killed and more than 4,600 injured. 

More than 1,100 buildings had been destroyed and over 800 damaged. Other impacts include lack of running water, power, and communications systems, as well as damage to highways and bridges. An airport in Manta was closed.

President Rafael Correa declared states of emergency of six of the country's worst hit regions: Esmeraldas, Los Ríos, Manabí, Santa Elena, Guayas and Santo Domingo.

Arash Nasseri, senior engineer at AIR Worldwide explained the region experienced some of the largest earthquakes in the world.

"Seismic hazard in Ecuador is driven primarily by the Nazca subduction zone, which is located just offshore of western South America," he said.

"This subduction zone has led to uplift of the Andes mountain range and has produced some of the largest earthquakes in the world, including the largest earthquake on record, the 1960 magnitude 9.5 earthquake in southern Chile."

The catastrophe modeling firm's estimates explicitly capture damage from ground shaking. Insured losses are based on assumptions of earthquake insurance penetration rates in Ecuador.

Therefore, the firm warned there could be "considerable uncertainty". Total economic losses are expected to be "much higher" than insurers' payout.

The findings were published just before another earthquake hit the country today. 

The US Geological Survey rated it at magnitude six. So far no immediate damage has been reported. 

This article appeared in our April 2016 issue of The Actuary.
Click here to view this issue
Filed in:
04
Topics:
Environment
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Actuarial Analyst - Lloyd's Pricing

London (Central)
£40000 - £60000 per annum + benefits
Reference
119072

Move from Reserving/Capital to Lloyd's Pricing? Get in touch...

London (Central)
£40000 - £55000 per annum + benefits
Reference
119071

Senior Validation Actuary - Lloyd's

London (Central)
£100000 - £140000 per annum + benefits
Reference
119070
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200