Initial estimates of AIR Worldwide have reported that the insured losses following the earthquake that shook Ecuador on April 16, 2016, could reach more than 850 million USD.
The human toll has recorded, to date, more than 570 dead and 4600 injured people. Important material damage was also reported with 1 100 homes destroyed and 800 damaged. According to the Ecuadorian government, the 7.8 magnitude earthquake is the country's worst ever in nearly forty years.
The China Development Bank and the European Union have already provided support to Ecuador which should receive an aid of 2 billion USD.
With almost 16 million inhabitants, insurance remains hardly developed in Ecuador. In 2014, the life premiums did not exceed 276 million USD, representing just 0.27% of the GDP.
In principle, this recent catastrophe should not have a huge impact on the global insurance market as it is the case for the Japan earthquake of April 17, 2016 whose insured losses would reach 2.9 billion USD.