Verisk Estimates Economic Losses From June 24 Venezuela Earthquake Sequence Will Exceed USD 10 Billion
Strongest earthquake to impact Venezuela since 1900 causes widespread damage across northern Venezuela and highlights challenges within the country's insurance market
BOSTON, July 02, 2026 (GLOBE NEWSWIRE) -- The Catastrophe and Risk Solutions group at Verisk (Nasdaq: VRSK), a leading strategic data analytics and technology partner to the global insurance industry, estimates economic losses from the June 24, 2026 earthquakes in Venezuela will likely exceed USD 10 billion. Verisk notes a higher degree of uncertainty than usual in estimating the insured share of industry losses because of Venezuela's macroeconomic conditions, elevated inflation, low insurance penetration, and sanctions-related market complexities.
Earthquake Sequence and Impacts
On June 24, Venezuela was struck by a rare earthquake doublet near Yumare-Morón in Yaracuy state, approximately 100 miles west of Caracas. A magnitude 7.2 foreshock was followed just 39 seconds later by a magnitude 7.5 mainshock, making it the strongest earthquake to impact Venezuela since 1900. The shallow strike-slip rupture occurred along the San Sebastián fault system within the tectonically active boundary zone between the Caribbean and South American plates and was subsequently followed by more than 430 recorded aftershocks.
Damage was most severe in the Caracas metropolitan region and the coastal state of La Guaira, where an estimated 1,400 buildings were destroyed. Significant destruction was also reported across Aragua, Carabobo, and Yaracuy states. Communities including Puerto Cabello, Catia La Mar, Maiquetía, San Felipe, Los Teques, Petare, Valencia, and Baruta experienced severe shaking, according to U.S. Geological Survey intensity estimates.
Modeling Information
Because of Venezuela's economic environment, Verisk notes greater uncertainty than is typical for an industry loss estimate. Factors contributing to this uncertainty include assumptions regarding earthquake insurance take-up rates, ongoing inflationary pressures, and the challenges associated with accurately valuing insured assets in a rapidly changing economic environment.
The modeled insured loss estimates do not include losses resulting from fire-following, landslides, sprinkler leakage, loss adjustment expenses, damage to uninsured properties or infrastructure, extra-contractual obligations, hazardous waste cleanup, vandalism, or civil commotion, whether directly or indirectly caused by the event. The estimates also exclude losses associated with civil engineering (railway) risks, marine cargo and marine hull risks, aviation risks, transit warehouse risks, personal accident risks, and other non-modeled sources of loss.
Building Stock and Earthquake Vulnerability
Today, the majority of residential buildings in Venezuela's urban areas are constructed of masonry, including reinforced masonry, confined masonry, and unreinforced masonry structures. Reinforced concrete is the predominant construction type in mid- and high-rise residential buildings, particularly in major urban centers such as Caracas.
Although modern engineering standards exist, seismic performance varies significantly due to local construction practices, material quality, and enforcement of building codes.
Insurance Market in Venezuela
Venezuela's insurance and reinsurance sector remains relatively small and highly concentrated compared to many global markets. The industry continues to operate under challenging macroeconomic conditions characterized by elevated inflation, currency depreciation, regulatory complexity, and limited market capacity.
These conditions create additional uncertainty when estimating insured losses following a catastrophe. Variations in earthquake insurance penetration, coverage levels, and insured property values can materially influence the ultimate insured share of economic losses resulting from the earthquake sequence.
About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, catastrophic events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses.. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work. For more, visit Verisk.com and the Verisk Newsroom.
Mary Keller Verisk 339-832-7048 mary.keller@verisk.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
