Italy earthquake losses could reach close to €35m

The insured property losses caused by the earthquake which hit Central Italy on August 24 is expected to be €34 million, as estimated by catastrophe insurance data provider PERILS.

The main earthquake with magnitude of 6.2 and a depth of 10 kilometres, followed by a dozen weaker aftershocks, caused severe damage to the areas of Amatrice, Accumoli, Norcia, and Pescara del Tronoto.

The hardest hit towns were smaller, older towns, with numerous buildings having collapsed and severe building damage reported in the town of Amatrice.

Luzi Hitz, CEO of PERILS, said: "Earthquake insurance penetration varies greatly in Italy. As a general rule, insurance penetration is driven by economic activity.

“It is therefore not a surprise that the insured losses from the Amatrice Earthquake, which hit a remote area in the central Apennine mountain range, are comparatively low.

“Had a similar earthquake occurred in a heavily industrialized area of Italy, insurance penetration and insured losses would have been much higher.”

Eduard Held, head of products, added: “PERILS’ detailed market exposure and loss data allow a precise evaluation not only of the market-wide insured exposure to natural catastrophes but also of related loss vulnerabilities and insurance penetration levels.

“Regarding the variations in these levels across Italy, our market data also enable the quantification of insurance penetration per province and therefore help to quantify insurance gaps."