Verisk’s Catastrophe and Risk Solutions Group says economic losses from the June 24, 2026 earthquake in Venezuela could exceed $10 billion. The panel said the industry’s share of lost insurance is unusually difficult to estimate due to the country’s macroeconomic conditions, rising inflation, low insurance penetration and sanctions-related market complexities.
Verisk, a strategic data analytics and technology partner for the global insurance industry, said factors contributing to this uncertainty include assumptions about earthquake insurance underwriting rates, ongoing inflationary pressures and the challenge of accurately valuing insurance assets in a rapidly changing economic environment.
Verisk explains: “Modeled insured loss estimates do not include losses from fire, landslides, sprinkler leaks, loss adjuster fees, damage to uninsured property or infrastructure, extra-contractual obligations, hazardous waste cleanup, vandalism or civil disturbance, whether caused directly or indirectly by the event.
“These estimates also exclude losses related to civil engineering (rail) risks, marine cargo and hull risks, aviation risks, transit warehouse risks, personal accident risks and other unmodeled sources of losses.”
The rare double earthquake occurred near Yumare-Morón in the state of Yaracuí, about 100 miles west of the Venezuelan capital Caracas.
“The magnitude 7.5 mainshock occurred just 39 seconds after the magnitude 7.2 foreshock, making it the strongest earthquake to affect Venezuela since 1900,” Verisk noted.
The Caracas metropolitan area and the coastal state of La Guaira were most severely damaged, with an estimated 1,400 buildings destroyed. Severe damage was also reported in the states of Aragua, Carabobo and Yarakuy.
According to USGS intensity estimates, the communities of Puerto Cabello, Catia Lamar, Maiquetia, San Felipe, Los Tex, Petare, Valencia and Baruta experienced severe shaking.
According to Venezuelan National Assembly Speaker Jorge Rodriguez, at least 2,295 people have died. According to wider reports, more than 43,000 people are still missing and 15,866 people are homeless.
Meanwhile, the United Nations Resident Coordinator in Venezuela, Gianluca Rampola Deltindaro, said the organization was procuring 10,000 body bags to deal with the rising death toll as an emergency measure agreed with local authorities
Verisk said Venezuela’s insurance and reinsurance industry remains relatively small and highly concentrated compared with many global markets.
The company continued: “The industry continues to operate under challenging macroeconomic conditions, characterized by rising inflation, currency depreciation, regulatory complexity and limited market capacity.
“These conditions create additional uncertainty when estimating insured losses following a disaster. Changes in earthquake insurance depth, coverage levels, and insured property values can have a significant impact on the ultimate insured share of economic losses resulting from an earthquake sequence.”
