Morocco: Parametric insurance pool pays out $275m for Sep 2023 'quake

Source: Middle East Insurance Review | Mar 2024

A parametric insurance pool brokered by Gallagher Re has paid compensation of $275m to Morocco’s Solidarity Fund against Catastrophic Events (FSEC), relating to the September 2023 magnitude 6.8 Al Haouz earthquake.

With the compensation and its own funds, the FSEC covered 80% of the insured losses from the disaster, the rest being covered by Moroccan insurance companies, reported the newspaper Le Matin.

Estimates are that the Al Haouz earthquake resulted in insured losses of $500m out of overall economic costs of $7bn caused by the earthquake.

In 2020, the fund signed a parametric insurance contract with Gallagher Re, to cover earthquakes. Under the parametric insurance agreement, more than 20 reinsurers provide coverage as a group.

The FSEC was formed in 2019 to provide compensation for the uninsured or insufficiently insured against catastrophic events which cause residential property damage and bodily injury. Catastrophes covered include riots, civil commotion, terrorism, earthquakes, floods and tsunamis. M

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