Puerto Rico earthquake insured losses will be lower than for hurricane Maria

Insured losses from the 6.4 magnitude earthquake in Puerto Rico yesterday are likely lower than the island’s overall economic losses and losses from Hurricane Maria, according to Fitch Ratings managing director Jim Auden.

"While hurricane risk is a prominent exposure in the Caribbean, there is a history of earthquake activity in the region as well, including a 7.1M event in 1917,” he said. “Without knowing the extent of devastation from today's quake, it’s hard to estimate its full toll.

"Property owners in Puerto Rico are less likely to have insurance coverage for earthquakes than for windstorms. As such, the percentage of economic losses from this event that is insured could fall much lower than those from Hurricane Maria, which limits loss potential for US insurers and reinsurers."

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