19 April 2016 Insurance

Ecuador earthquake strongest since 1979

The Mw7.8 earthquake that struck Esmeraldas Provine in northwester Ecuador on April 16 is the strongest recorded earthquake in Ecuador since 1979, said catastrophe risk modelling company Risk Management Solutions (RMS).

The quake destroyed at least 370 buildings and damaged approximately 151 buildings, according to the firm. It said ten earthquakes of Mw4.5 or greater have followed the original quake, including an Mw5.6 earthquake at 07:13 UTC on Sunday April 17, approximately 75 mi (120 km) south southwest of the Mw7.8 epicentre.

According to officials, oil production has been unaffected and the country's energy industry - a crucial sector of its economy - remains largely intact.

A national state of emergency has been declared and around 10,000 troops and 3,500 police have been deployed in the affected areas to help with rescue efforts. It is thought that many people are still trapped under collapsed buildings.

According to Ecuador’s National Secretariat for Risk Management (SNDGR) there have been over 272 fatalities so far and over 1,577 people injured. The numbers are expected to rise, said RMS.

In Manabi Province, 95 percent of the electricity supply has been lost due to damage to electricity lines and transformers. Efforts are underway by all electricity companies to restore power, although they are facing difficulties due to earthquake damage on the roads. The SNDGR cannot at present give an estimate of when power will be restored. Drinking water plants in Manabi have reportedly also been damaged by the earthquake.

Several major roads have been closed in Manabi and Bolivar Provinces; two highways in Portoviejo, which experienced MMI VII shaking, have collapsed. Ecuador's airports are operating except for General Ulpiano Paez Airport near Salinas city in Santa Elena Province, which is closed due to problems with lighting, whilst the control tower at General Eloy Alfaro airport in Manta Province has collapsed.

Damage has been reported by the SNDGR to tourist accommodation in the whole central area of Portoviejo city (population 223,000), and at least 12 hotels have suffered structural damage. In the city of Manta (population 218,000), four hotels have collapsed and in Bahía de Caráquez (population 19,700) at least 14 hotels have been damaged.

A 1979 earthquake with a magnitude of Mw8.2 struck the Tumaco Province, which destroyed over 1,200 buildings, injured more than 4,000, and killed at least 500 people.

Dr Robert Muir-Wood, chief research officer at RMS, said: "As well as the fatalities and the impact on people’s lives there is likely to be significant economic damage in Ecuador.

For the insurance industry key areas of concern will be around Esmeraldas which is a major port city just beyond the northern extent of the strong shaking. As well as facilities for international sea trade there is also the country’s largest oil refinery with a capacity of 110,000 barrels per day.”

At the southern end of the area of strongest shaking lies the country’s largest sea port at Manta. A short distance inland from there is Portoviejo which is the main commercial centre for this region.

Right across the affected coastal areas it’s clear that construction standards are often poor, said RMS. Major commercial buildings and the many seaside hotels are also likely to be of concern to the insurance industry.

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