RMS Caps Insured Losses from Puebla Earthquake at $1.2 Billion

Catastrophe risk modeling organization Risk Management Solutions (RMS) has released its initial loss estimates following the Puebla earthquake that hit Central Mexico on September 19, 2017.

Based upon current building damage information from the Mexican authorities, RMS said that economic shake losses will be between $4 billion and $8 billion. RMS also analyzed data on ground motion and examined how property exposures are distributed across the region.

Because of low insurance penetration rates across Mexico, particularly in residential lines, RMS expects that insured losses will not exceed $1.2 billion. This estimate accounts for shake-only insured losses to structures, contents, and business interruption, including the effects of liquefaction and landslides. Post-event loss amplification is not expected to be a significant factor in these losses.

RMS provides modeling information, data, and risk management solutions around risks of natural and human-made catastrophes, including hurricanes, earthquakes, floods, terrorism, and pandemics.