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The fear of the earthquake is overcome with insurances
Posted On 06 Oct 2016
The earth trembles 42 seconds and 30 years of hard work to build a house collapse. Unless you have insurance to cover the damage. This is the lesson learned by a 20.7% more of Ecuadorians, judging by the increase in the hiring of fire insurance policies (the branch which includes catastrophe losses) in the first half of the year.
“More concern and awareness” is the response of citizens to the disaster of last April, according to the CEO of the Association of Insurance Companies of Ecuador Patricio Salas. And it was reflected in a fire premium issued that reached $ 158.3 million from January to June this year compared to the $ 131.1 million accumulated in the same period of 2015.
These extraordinary the $ 27.2 million in the first half represent a premium increase of the 20.7% in the total market of policies already mentioned. In fact, comparing the first quarter (pre-earthquake) and the second quarter (after the earthquake) fire policies are contracted have doubled (109.06%).
“We have to wait to see if the trend continues until the end of the year and compensates,” said Salas. He makes a balance of a recession period “that has lasted for several months,” leaving a negative figure of 2.7% in the total market of policies and that forces to pay a bill of $ 9 million after the earthquake. The rest is assumed by reinsurers.
Source: http://expreso.ec/
