The earthquake in Taiwan, in which at least twelve people died last Wednesday, is likely to be very expensive for the insurance industry. According to experts, it could result in a burden of between five and eight billion US dollars, which will be split between many insurers and reinsurers.
The estimate comes from the US company Corelogic, which specializes in modeling insurance risks and damage. According to the modelers, the economic costs caused by the earthquake are likely to be significantly higher.
If you compare the Taiwan quake with the strong quake that shook eastern Turkey and parts of Syria in February 2023, the damage is of a different magnitude. At that time, according to one estimate, insured losses amounted to $3.5 billion – mainly because the insured values in Syria and Turkey are significantly lower than in Taiwan.
The experts say that the reason for the high damage is that Taiwan is considered a world leader in the semiconductor industry, a key industry for the global economy. However, initial reports from industry suggest that there has been little to no impact on facilities and headquarters, located primarily in the west of the island.