The massive earthquake that is reported to have killed thousands in China's Sichuan province today may involve limited insured losses for some sectors, a catastrophe modeling firm said.
Boston-based Air Worldwide said insured losses will be mitigated by the low amounts of properties with earthquake insurance, which AIR estimates to range between 2 percent and 5 percent in the epicentral region.
However, insurance take-up rates for projects under construction, the coverage referred to as "construction all risks, erection all risks" (CAR/EAR), are higher–up to 40 percent–and this may have a significant impact on insured losses in rapidly growing Chengdu, the company said.
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