Summary:
19% of homes in Portugal have earthquake insurance, highlighting a significant protection gap.
The APS warns that 47% of homes are uninsured, and 34% lack specific earthquake coverage.
A recent 5.3 magnitude earthquake exemplifies the urgent need for a protective system.
The insurance sector is prepared to offer solutions to help citizens manage earthquake risks.
Urgent Warning from the Portuguese Insurance Association
The Portuguese Association of Insurers (APS), led by José Galamba de Oliveira, is sounding the alarm about the insufficient coverage for earthquake risks in Portugal. They emphasize the urgent need to establish a catastrophic risk protection system to safeguard both individuals and their homes.
Current Insurance Coverage Situation
Recent reports indicate that only 19% of homes in Portugal possess insurance that covers earthquake risks. The APS highlights that 47% of homes lack any insurance, and 34% have fire or multi-risk insurance but do not include coverage for earthquakes.
Recent Earthquake Highlights the Need for Action
Following a 5.3 magnitude earthquake that struck the region without causing any personal or material damage, the APS reiterated its long-standing message about the imminent risk. They assert that the current state of coverage is inadequate, noting that Portugal is located in a seismic zone that has historically experienced significant earthquakes.
A Call for Government Action
The insurance sector, with its extensive experience in managing such risks globally, is ready to contribute solutions. The APS has repeatedly proposed a viable protection mechanism to the government and parliament. They hope that this recent seismic event will prompt quicker action towards creating a system that helps citizens mitigate the losses that a major earthquake could inflict.
The APS believes that establishing such a system is crucial for restoring normalcy in people's lives after such catastrophic occurrences.
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