Italy earthquake insurance losses may be minor

italy earthquake insurance

Damage from the quake was extensive and the aftershocks continued over a span of several days.

The total damage from the devastating Italy earthquake has yet to be tallied as it is too early to know. That said, the insurance industry has predicted that the insured losses will not be significant.

The property values in the affected towns and the lack of coverage has meant limited losses for insurance companies.

Despite the fact that there won’t be tremendous insurance losses, the disaster left behind for the people is horrifying. In the days following the Italy earthquake, aftershocks continued to shake the ground. They caused further destruction and made rescue and relief efforts more difficult. The immediate death toll was around 50, but that number quickly rose to reach closer to 300 in following days. RMS, a risk management firm, predicted that the final number will likely be between 250 and 350.

Even the Vatican sent a team of emergency rescue professionals to help following the Italy earthquake.

italy earthquake insuranceThe chief research officer at RMS, Robert Muir-Wood explained that it will take a number of days before a complete tally of the damage is formed. That said, “it is clear there is little higher value property in the towns and villages affected by the area of stronger shaking, which will limit insurance losses as residential properties are generally uninsured for earthquake.”

Many of the homes within the area struck by the catastrophic earthquake, the Umbria region of Italy, were completely destroyed. These towns were composed of many older homes made from masonry rubble. They are especially vulnerable to the shaking of an earthquake and are prone to collapse. This poor building quality was a direct contributor to the number of deaths from the earthquake, said RMS.

The towns struck by the Italy earthquake are small and old, making them very popular destinations for tourists. Amatrice, for instance, already had many guests staying in the region in preparation for the 50th annual Festival of the Spaghetti all’Amatriciana. That festival was meant to be held over the weekend. The rise in tourists staying in the affected towns also meant for a more deadly earthquake.

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