October 7, 2016 by Canadian Underwriter
The initial estimate of the insured property market loss for the damage caused by the earthquake in central Italy on Aug. 24 is 34 million euros, according to PERILS, the independent Zurich-based organization that provides industry-wide catastrophe insurance data.
The Rome-based Istituto Nazionale di Geofisica e Vulcanologia, currently the largest European body dealing with research in geophysics and volcanology, reported that the magnitude 6.0 earthquake’s epicenter was located near the borders of the Lazio, Marche and Umbria region, an area known for experiencing high seismicity. The last significant earthquake in the central Apennine mountain range occurred in April 2009 and mainly affected the town of Aquila, situated only 45 kilometres to the south of the event, PERILS said in a press release earlier this week.
The earthquake caused the deaths of 298, mostly in the small towns of Amatrice, Accumoli and Arquata del Tronto.
“Earthquake insurance penetration varies greatly in Italy,” Luzi Hitz, CEO of PERILS, noted in the release. “As a general rule, insurance penetration is driven by economic activity. It is therefore not a surprise that the insured losses from the Amatrice earthquake, which hit a remote area in the central Apennine mountain range, are comparatively low. Had a similar earthquake occurred in a heavily industrialized area of Italy, insurance penetration and insured losses would have been much higher.”
The next loss report will be made available on Feb. 24, 2017 and will contain loss data by CRESTA zone, and by the property sub-lines residential and commercial.