A magnitude 8.0 earthquake occurred near the coast of Peru about 125km SSE of the capital Lima, on 15 August 2007, just as Catastrophe Risk Management was going to press. Initial reports said at least 400 people were killed and 1,500 injured in the Ica-Lima-Pisco area. Extensive damage was reported at Chincha Alta, Ica and Pisco. Coastal Peru has a history of very large earthquakes.
According to catastrophe modelling companies, EQECAT and AIR, damage is extensive but only a small proportion will be insured. EQECAT estimated total losses would be between approximately $10 billion and $20 billion. AIR Worldwide believes that insured losses are not likely to exceed $1 billion. AIR said that the insured properties are mainly concentrated in the capital Lima where damage was limited.
