Insured losses from Chile earthquake likely to be low: AIR Worldwide
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The 8.2-magnitude earthquake that struck off the coast of Chile on Tuesday is unlikely to result in significant insured losses, according to Boston-based catastrophe modeler AIR Worldwide Corp.
In a statement released Wednesday, AIR said the expected low amount of insured losses reflected the fact that the region most affected by the quake is “relatively sparsely populated.”
“Since the quake's epicenter was located quite a distance from the coast, the shaking inland was not very severe and should serve to reduce the insured losses from this event,” said Mehrdad Mahdyiar, senior director of earthquake research at AIR Worldwide, in the statement. In addition, he said the fact that the impacted area was very rural and characterized primarily by low-rise buildings constructed from either unreinforced masonry or confined masonry helped mitigate the potential for insured losses.
AIR noted that the most imminent threats from the quake were tsunamis, and that the Chilean government issued mandatory evacuation orders for those living along the coast. The orders remained in effect until early Wednesday morning for coastal areas north of Antofogasta, Chile. Although waves as tall as 6.9 feet came ashore in the northern port cities of Pisagua and Iquique causing flooding, there were no reports of major damage, according to AIR.
