Earthquake Risk Transfer for Ecuador
Ecuador, a country exposed to a high seismic hazard from megathrust subduction earthquakes and moderate‐to‐large shallow crustal earthquakes.
Quito the capital of Ecuador can be strongly affected by three kinds of earthquakes: (1) events with magnitude larger than 8 coming from the subduction zone located at more than 200 km (e.g. Esmeralda, Mw 8.8), (2) shallow events with a magnitude 7 to 7.5 from the Andes cordillera and originated about 80 km away or more and (3) events with a magnitude 6 to 7 occurring on faults close to the city.
Several faults around Quito could generate damaging earthquakes. Among them, ‘Quito Fault’ is considered as the most important for seismic hazard purposes.
Building on the knowledge produced in the recent historical seismicity and earthquake catalogs earthquake recurrence models are developed. As a result, one of the latest preparedness alert issued for a moderate M6.2 earthquake, on September 6, 2018. The earthquake shook the region on day 6 after the preparedness alert issued by Earling.
Ecudador short-term expected earthquake loss
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How EPA Affects Recent Insured Losses
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.
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.
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.