Categories

Contributors

Other BV Blogs

US Insurers Have Very Little Exposure to Haitian Earthquake

Posted by Boyce Watkins, PhD on Jan 14th 2010 9:05AM
Filed under: Other

Comments (2)

The devastation of the recent earthquake in Haiti is not only an emotional challenge for those involved; there is now also the logistical discussion about insurance coverage in the area, which will make up some of the monies available for rebuilding shattered lives.

"Haiti is one of the smallest insurance markets in the Americas" and U.S. insurers may have very little exposure to the losses caused by the earthquake, according to MSNBC. Haiti's total non-life insurance premium income is only about $20 million, in comparison to U.S. coverage in 2008 at $441 billion according to the Insurance Information Institute's 2010 Fact Book.


These numbers "'reflect the country's poverty,' according to a report Wednesday from from Newark, Calif.-based Risk Management Solutions, Inc." (MSNBC). It is estimated that if there is property and casualty insurance business in Haiti, it is only about 0.3 percent of the country's gross domestic product, according to Jackie Barber, Risk Management Solutions' director of corporate marketing. Haiti is the poorest nation in the Western Hemisphere, with an annual government budget of just over $1 billion dollars. In comparison, Bill Gates could personally fund the Haitian government with the interest on his fortune and still have several billion left over each year.

Damage estimates from Haiti's terrible earthquake are not yet available. Yet, it appears that U.S. insurance companies will not be in the position of having to pay massive amounts to Haitian victims of the earthquake, regardless of what the final bill might be. The insurance policies were never taken out by residents or businesses, obviously because the people of this poor nation could not afford disaster coverage.

This underscores the importance of aid to Haiti, as the U.S., many companies, and millions of individuals continue to give.

Dr. Boyce Watkins is the founder of the Your Black World Coalition. To have Dr. Boyce financial commentary delivered to your email, please click here.

Comments: (2)

Add a comment

Page 1 of 1

Add a Comment

Please keep your comments relevant to this blog entry. Email addresses are never displayed but they are required to confirm your comments. When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password."

Get Closer to BV

  • slider Image
  • slider Image
  • slider Image

Find Your Next Car

New
Used

Resources

 

10 Most Searched Makes on AOL Autos