Earthquake Risk Transfer for Venezuela

Earthquake Risk Transfer for Afghanistan; Short-term earthquake loss
Fig.1 - Hashed circles represent current Earling undercover regions.

On August 21, 2018, a magnitude 7.3 earthquake struck just off the northern coast of Venezuela, near Cariaco, Sucre. It prompted evacuations in Caracas, and caused shaking in Colombia, Guyana, Brazil, Grenada, Dominica, Barbados, St. Vincent and the Grenadines, St. Lucia, and Trinidad and Tobago, the last of which also suffered damage and brief phone and power outages from about 100 miles away. A tsunami is not expected, though the Pacific Tsunami Warning Center warned of wave potential, and an alert had been broadcast for tsunami waves along coastlines. In terms of damage, concrete fell from the unfinished Tower of David skyscraper, blocking the sidewalk and closing traffic.

Venezuela short-term expected earthquake loss

Earthquake risks that need to be transferred? download the report.

How EPA Affects Recent Insured Losses

Fig.2 - PML - Mean return period in years. EPA can help to expand the earthquake insurance penetration rate. But EPAs those are not supported by First Notice increases insurance loss. Venezuela earthquake Average Annual Loss is $2,044 million (Venezuela, Bolivarian Rep of Disaster & Risk Profile, 2014).

Affordable Risk Transfer

Once a loss occurs, it is too late to revise an insurance policy. Consequently, the policyholder must be extremely diligent during policy purchase and renewal. Understanding specific insurance requirements, carefully calculating the property and business interruption values, outlining contingency plans, and anticipating the potential losses at each location are all key steps in maximizing future insurance recoveries. In sum, paying close attention to the potential impact of a loss at the insurance procurement stage will help to minimize issues and maximize recovery when a loss does occur.

Proposing the best time-window(s) for maximizing insurance coverage before a catastrophe is the Earling solution to transfer earthquake risks. Instead of 365 days insurance, maximize the current coverage only for a few days in each year.

Now that revising insurance policies once a loss occurs is too late, Earling helps to know the best time to transfer risk through new policies or extending the current coverage for a limited period of time for example only for 10 days and not for 365 days of year.
Maximizing insurance coverage after a catastrophic loss is difficult for any company but Earling Earthquake Preparedness Alerts assists to do it before a catastrophe occur.

Well Known Risk Takers

Tackle your risks with our solutions to the big players. We propose enterprise companies as well as SMEs and individualizes the best time to purchase a new earthquake policy or extending the current coverage to make it inexpensive.
risk takers
Currently, Japan, New Zealand, Greece, Turkey, Caribbean, Chile, Ecuador, Taiwan, Romania, Indonesia, California are the regions, which Munich Re accepts their risks. In addition, South Africa, Oklahoma and Utah are subject to further work. Also, between the regions that Earling issues Earthquake Preparedness Alerts, Japan, New Zealand, Caribbean, Chile, Ecuador, Taiwan, Indonesia and US (California, Utah) are undercover by Swiss Re to take the risks.

How we can help?

In general, Earling has a global seismic monitoring network and specialists that are subject matter experts. Regarding the challenges mentioned above, Earling is been able to deliver support.

  • In the pressure on profitability, performance management and key performance indicator settings.
  • In the entrance of parametric insurance markets and issuing alternative products, Earling can deliver independent advice by our global resources.
  • To keep control on the impact of catastrophic events, Earling can assist in optimizing, validating on Cat and reinsurance programs modelling.

Requirements

Schedule a meeting to see how Earthquake Preparedness Alerts can transfer your risks.
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