The earthquake that struck Morocco last September caused a direct economic cost of around $7 billion, according to the latest estimates from Gallagher Re, the global reinsurance broker. “Of this total cost, the insurance market covered $500 million, a significant portion of which was covered by a parametric insurance plan set up by Gallagher Re,” it is specified in a document official of which “Le Matin” has a copy. The compensation paid by the broker to Solidarity fund against natural disasters (FSEC) amounts, in fact, to 275 million dollars.
Recall that the FSEC signed, in 2020, a parametric insurance contract with Gallagher Re, the first of its kind in Africa, intended to cover earthquakes, particularly uninsured property and their owners. A group of more than 20 reinsurers, led by major global reinsurers, was tasked with coverage through Gallagher Re. With compensation received of $275 million, FSEC, adding equity, covered 80% of the losses insured, the rest being covered by the Moroccan insurance market.
However, the portion of costs not covered by insurance, known as the protection gap, is very significant, given that the overall economic bill from the earthquake is $7 billion, according to Gallagher Re. is thus that in application of the High Guidelines of HM le Roi Mohammed VI, an integrated and multidimensional program for the reconstruction and upgrading of the affected regions has been put in place. It concerns nearly 4.2 million inhabitants of the affected areas for a budget estimated at 120 billion dirhams over five years. Funding will be provided from credits allocated from the general State budget, contributions from local authorities and the Special Solidarity Account dedicated to managing the effects of the earthquake, as well as through donations and international cooperation. .
According to Gallagher Re experts, the protection gap is also observed on a global scale. In 2023, the estimated direct economic cost of natural disasters (direct property damage and net business interruption losses) worldwide, including the Morocco earthquake, amounted to $357 billion. About $123 billion of this total was covered by the private insurance market ($110 billion) and public insurance entities ($13 billion). This means that the portion of event costs not covered by insurance amounted to 66%, or $234 billion. The most economically costly event was the earthquake sequence in Turkey in February 2023. This event resulted in an economic cost of $46.2 billion, of which $6.1 billion was covered by entities private and public insurance.
2024-02-04 17:47:55
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