Morocco Earthquake Damage Could Cost $10 Billion, Strain State Budget

The magnitude 6.8 earthquake that hit the Al Haouz region and caused nearly 3,000 deaths and more than 5,000 injuries has caused material damage of around $10 billion, or just over 9 billion euros, according to estimates from the United States Geological Survey (USGS) reported by LeDesk. The amount of the earthquake "will be between 1 and 10 billion dollars, costing the country up to 8% of its GDP," we are informed.

"This cost will be borne mainly by the state coffers, as well as through the fund set up specifically for this purpose, and which will be financed by donations collected from various stakeholders," specifies the same source, recalling that the insurance coverage rate against natural disasters remains very low in Morocco. However, the Solidarity Fund against Catastrophic Events (FSEC) makes it possible to compensate the victims of this type of disaster.

In Morocco, "the losses for insurers will be much lower than in Turkey," said Jean-Paul Conoscente, general manager of the damage branch of the Scor group, without giving details. The earthquake that shook Turkey in February had caused $34 billion in damage and insurance companies were expected to bear $5.3 billion, the reinsurer Swiss Re had estimated.