Much of Haiti damage not insured

[Robbien]

Source: Reuters

NEW YORK, Jan 13 (Reuters) - The insurance industry is unlikely to face large losses from a major earthquake that struck Haiti on Tuesday, because many properties in the impoverished country lack insurance coverage, according to catastrophe modeler Risk Management Solutions.

"The impact to the insurance industry is likely to be limited given that insurance penetration in Haiti is very low, at around 0.28 percent of gross domestic product," Risk Management Solutions said.

. . .

On Wednesday, the Caribbean Catastrophe Risk Insurance Facility said it would pay out $8 million, the full policy limit, to Haiti based on preliminary data of the location and strength of the earthquake.

Germany's Hannover Re said it expects a 20 million euro ($29 million) loss from the earthquake.

. . .

In 2005, Hurricane Katrina led to more than $40 billion of claims

The attack on New York's World Trade Center in September 2001 cost insurers up to $60 billion.

Read more: http://www.reuters.com/article/idUSN1315144420100113?type=marketsNews

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After the disaster relief people go home and the media spotlight is turned off, where does Haiti go from here? How does it rebuild when insurance is just talking in the millions.

[PacerLJ35]

1. If you can't afford to build a sturdy structure in the first place...

how the hell are you supposed to pay to insure it?

[Dr.Phool]

2. I think it's more, if you can't afford food.......

[Robbien]

4. But do you envision Port au Prince rebuilding

when they cannot even afford food? Most of the world's contributions right now is to help the people get through the initial stage of the disaster. The Tsunami disaster was rebuilt through foreign investors. Foreign investors aren't investing much these days.

[Warpy]

3. If you feed your children mud pies to calm the pain in their bellies

because you can't afford to buy enough food, why would you consider paying for insurance?

[Xenotime]

11. That's so sad...

[cutlassmama]

5. A shack doesn't cost a whole lot to rebuild

[Posteritatis]

6. It does if you can only afford to live in one. (nt)

[chollybocker]

7. Yeah, right. Haitians are reknowned for carrying expensive insurance policies.

...
And this is what concerns Reuters reporters? WTF? :eyes:

[Faygo Kid]

8. So what? The insurers would find a way to deny claims, anyway.

Insurance is a joke. Try to redeem a claim.

[Dr.Phool]

10. They'd deny the claim and say it was caused by a flood.

And you need flood insurance in the mountains.

[harkadog]

13. If you ever own a house I'm sure you won't have insurance.

Afterall they aren't going to redeem a claim so why pay for it.

[nightrain]

9. yes, they can't afford insurance either!

[varelse]

12. where does Haiti go from here? How does it rebuild when insurance is just talking in the millions.

That is on us, and it is up to us. Who else cares? :shrug:

[angrycarpenter]

14. Don't worry, the international banking community

will find some way to profit from the misery, they always do. They could end up owning the whole place for chicken feed.

[JCMach1]

15. Glad to see someone had to do extensive research for this article,

NOT!

Homer Simpson could have handled this one...