A 7.1 magnitude earthquake struck central Chile yesterday, disrupting power and communications but causing no casualties or serious damage, according to news reports.

A tsunami alert was not issued.

Lessons from Last Year’s Earthquake

Chile is still recovering from the massive earthquake that shook the country last year. The Marsh team has also been drawing important lessons from the disaster.  The Marsh team noted that renewals have been difficult and some rate increases have been substantial.  Among their observations has been the need to ensure appropriate policy wordings. (For instance, was the tsunami that followed the earthquake a "separate event" or the looting that followed a "separate incident"?).

Underinsurance is also likely to be an issue for many insureds, as the area impacted by the earthquake was much larger than modelling had anticipated.

Marsh’s Risk Consulting Practice recommends that companies operating in areas prone to natural disasters implement a thorough earthquake risk assessment in order to properly minimize financial loss. Business continuity management and crisis management are crucial elements to evaluate when preparing for, or trying to recover from, any type of crisis.

For real-time research and forecasts of natural catastrophes, please refer to Guy Carpenter's Cat Central bulletins.

For more information, please contact us at: contact@marsh.com.