Chile Finalizes Major Earthquake Insurance With World Bank
Chile is finalizing a deal with the World Bank for insurance against high-intensity earthquakes that would impact the country’s fiscal policy and public debt, the Finance Ministry said on Thursday.
“The specific conditions of the insurance will be disclosed once this financial operation is completed, which would eventually occur in the coming weeks.”
The government said that studies to design different financial insurance structures with the World Bank – through the International Bank for Reconstruction and Development (IBRD) – began in June 2022.
Chile is prone to earthquakes as it is located in the so-called Pacific Ring of Fire. It has been hit by some of the strongest recorded earthquakes in the world, including a record 9.5 magnitude quake in 1960 in the southern city of Valdivia.
The South American country was also struck by a devastating 8.8 magnitude earthquake and tsunami in 2010 that left more than 500 dead.
The government said that the IBRD intends to issue a catastrophic bond, or cat-bond, that replicates the coverage structure of the policy.
(Reporting by Fabian Andrés Cambero; editing by Sandra Maler)
- Prudential to Wind Down Direct-to-Consumer Assurance Business
- An Origin Story: The History of the Professional Liability Underwriting Society
- Insurers Get Green Light to Pay Less Than Billed Charges in Florida PIP Cases
- Cracks in O’Hare Columns Aren’t Insured Property Damage, Just Bad Product – Court