(Bloomberg) -- The earthquake that struck Nepal caused about $2billion in economic losses in the country, and only a fraction ofthe cost will be incurred by insurers, according to KineticAnalysis Corp.
Damage in India could cost an additional $800 million, accordingto figures from the disaster-modeling firm that include propertydamage and long-term business-interruption costs. Less than 1% ofthe losses are covered by insurance, according to Kinetic’s initialdata from the main quake. The estimates exclude costs for immediateneeds such as food.
“Most developing countries just don’t really have matureinsurance industries,” Chuck Watson, Kinetic Analysis’s director ofresearch and development, said in a telephone interview Monday.“It’s getting by day-to-day. They’re not really concerned withthings like insurance.”
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