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Earthquake Risk Transfer for Ecuador

Earthquake Risk Transfer for Ecuador; Short-term earthquake loss
Fig.1 - Hashed circles represent current Earling undercover regions.

Ecuador, a country exposed to a high seismic hazard from megathrust subduction earthquakes and moderate‐to‐large shallow crustal earthquakes.
Quito the capital of Ecuador can be strongly affected by three kinds of earthquakes: (1) events with magnitude larger than 8 coming from the subduction zone located at more than 200 km (e.g. Esmeralda, Mw 8.8), (2) shallow events with a magnitude 7 to 7.5 from the Andes cordillera and originated about 80 km away or more and (3) events with a magnitude 6 to 7 occurring on faults close to the city.
Several faults around Quito could generate damaging earthquakes. Among them, ‘Quito Fault’ is considered as the most important for seismic hazard purposes.
Building on the knowledge produced in the recent historical seismicity and earthquake catalogs earthquake recurrence models are developed. As a result, one of the latest preparedness alert issued for a moderate M6.2 earthquake, on September 6, 2018. The earthquake shook the region on day 6 after the preparedness alert issued by Earling.

Ecudador short-term expected earthquake loss

Earthquake risks need to be transferred? download the report.

How EPA Affects Recent Insured Losses

Fig.2 - Probable Maximum Loss - Mean return period in years (Ecuador Disaster & Risk Profile, 2014). EPA can help to extend the earthquake insurance penetration rate. Ecuador earthquake Average Annual Loss is $1,248.84 million.
Fig.3 - EPA effect on Ecuador Apr 16, 2016 earthquake (SwissRe, 2017).