PERILS: Insured losses of the Amatrice earthquake of August 2016 account for 1.5% of the total economic loss

24 August 2017 — Daniela GHETU
Insured losses caused by the Mw 6.0 earthquake which hit Central Italy on 24 August 2016 have totaled EUR 108 million, 1.5% of the overall economic losses, shows the PERILS final loss estimate.

The revised estimate of the property insurance market loss is based on loss data collected from insurance companies. An earlier loss estimate of EUR 66 million was issued by PERILS on 24 November 2016, three months after the event.

In this final loss report, the market loss data are available by CRESTA zone and property line of business. This loss footprint information is complemented by instrumental shaking intensities, peak ground accelerations and loss ratios which show the incurred loss from the earthquake as a percentage of the sums insured.

Subscribers to the PERILS Industry Exposure & Loss Database can find more information about this earthquake in the "Industry Loss" section of the website. The final loss report for the series of earthquakes which hit a similar region in Central Italy on 26 and 30 October 2016 will be released by PERILS on 26 October 2017.

While this loss estimate is significantly below PERILS' standard EUR 200 million loss capture trigger for European events, it has nevertheless been captured given the significant socio-economic impact of the earthquake. The Italian Civil Protection Agency estimates the economic losses from the event at EUR 7.1 billion.

Based on the PERILS loss estimate of EUR 108 million, only 1.5% of the overall economic losses were insured. In comparison, the PERILS estimate of the insured loss of EUR 1.24 billion from the Emilia-Romagna earthquakes in 2012 represented 9.3% of the total rebuilding costs of EUR 13.3 billion estimated by the National Council of Engineers. The difference in these figures reflects the significant variation in earthquake insurance penetration levels across Italy.

The 6.2-magnitude quake hit at 03:36 (01:36 GMT) on Wednesday, August 24th, 100km (65 miles) north-east of Rome. The small cities of Amatrice, Arquato, Accumoli e Pescara del Troto were the worst hit. The August event was followed by a seismic series which counted between August 2016 - January 2017, more than 45,000 after shocks among which 6 episodes of over 5 degrees Richeter magnitude. Total losses throughout the period are currently estimated by the Italian authorities close to EUR 10 billion.

PERILS is an independent Zurich-based organisation providing industry-wide natural catastrophe exposure and event loss data.

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