chile

Chile is the latest sovereign government that is reportedly looking to a catastrophe bond issuance, providing a responsive source of disaster risk insurance or financing, as part of a goal to become more responsible about disaster and weather risk management.

Risk modelling firm AIR Worldwide estimates that the insurance and reinsurance industry will deal with an industry loss in the range of $600m to $900m after the recent magnitude 8.3 earthquake in Chile.

Overnight there has been a major magnitude 8.3 earthquake just off the coast of Chile. The quake has damaged regions of Chile, particularly coastal areas where a tsunami was recorded. Insurance and reinsurance industry exposure is unknown at this time.

Insurance linked investment manager Credit Suisse Asset Management has reported that despite having some small Chile earthquake exposures in its CS Iris Low Volatility Plus fund it does not expect any impact from the recent earthquake in Chile.

Since the February 2010 earthquake, the Chilean government has been actively looking for ways to improve their disaster risk financing both for the financial management of catastrophe risks and for their ability to recover post disaster. Last week the Organization for Economic Cooperation and Development (OECD) responded by holding a roundtable meeting on the Financial […]

It’s almost one year on from the 27th February 2010 earthquake in Chile and reinsurance intermediary Aon Benfield has issued a report which looks into the science behind the earthquake, the impact on the local insurance market and global reinsurers and outlines steps which can help insurers prepare for similar catastrophes.

The magnitude 8.8 earthquake which struck Chile in February of this year has caused major losses to insurers and certain reinsurers. Insured losses are said to total $8b to $12b with the majority ceded to reinsurers.

Chile is a country extremely prone to earthquakes, as evidenced by the 8.9 magnitude quake which devastated areas of the country in February this year. You would be forgiven for thinking that as a country plagued by earthquakes it would have a robust risk management and insurance culture. It doesn’t, but talks are beginning to […]

While the recent earthquake in Chile is going to be hugely costly to the Chilean economy and very costly to insurers it won’t have any impact at all on catastrophe bonds as none that have been issued cover that region for quake risk.