The recent devastating earthquake in Haiti has left its people aghast. As they gradually recover, they are looking around for means to resurrect their lives. But the insurance scenario in Haiti is so poor that adjusters have seen very few claims to compensate for losses after the devastation.
Most of the buildings in the Republic had no insurance whereas the losses incurred are quite significant. Despite the Republic being an active participant in the Caribbean Catastrophe Risk Insurance Facility since 2007, the funds that resources say to have been collected will not compensate the loss. Funds collected so far amount to a mere $8 million. Private insurers too may not be able to contribute much either, whereas the loss simply mounts to billions of dollars.
Officials at Haiti have assessed rebuilding costs at $3 billion which would only add to more as there are further assessments of damage from schools, medical facilities, court houses and other infrastructures.
According to a risk modeling firm Eqecat, most of the damage in Haiti occurred due to poorly constructed buildings. There is no national building code in Haiti and hence the intensity in this catastrophe. With only 8 active insurance companies amongst the 20 registered ones in Haiti, the adjusters may be having a tough time with the property assessment. 90% of the clients of these active companies belong to the Port-au-Prince.
Adjusters in Haiti expect insurance rates to increase in the Republic although they are not sure by how much the rates would increase.
Damages like this leave a scar not only physically but also mentally. Catastrophes may vary in magnitude and may be difficult to recover from, but with a proper infrastructure and proper insurance in place you may still have hopes of a better future.
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