“The fact that there is very little information about Haiti's private insurance market suggests that the market is very small–likely not more than a few tens of millions of dollars,” he added. “Consequently, private insurer losses…will be modest and will not have a material impact on global insurance and reinsurance markets.”

Beyond earthquakes, Haiti's insurance markets face challenges from frequent hurricanes, severe floods, landslides and mudslides, poor public safety infrastructure, and the fact that the country has a history of political and civil unrest, Mr. Hartwig noted.

The last major earthquake to hit Port-au-Prince occurred in 1770, causing 250 deaths and extensive damage. In recent years, only relatively minor earthquakes have been recorded, such as those in 1990 and 1994, with minimal to no damage, RMS said.

The Caribbean Catastrophe Risk Insurance Facility said Haiti's government, as a member of its risk pooling facility, will receive a little under $8 million for earthquake damage.

CCRIF said the amount it will pay Haiti is approximately 20 times the country's $385,500 premium for its earthquake coverage policy taken out as part of its disaster risk management strategy.

Based on calculations from the preliminary earthquake location and magnitude data, the pool said the 7.0 quake was of sufficient size to trigger the full policy limit for the earthquake coverage, with payment after a 14-day waiting period.

CCRIF said in addition to providing parametric catastrophe coverage, it has been assisting the Caribbean region to become disaster resilient by working with partner organizations such as the Caribbean Institute for Meteorology and Hydrology and the Caribbean Disaster and Emergency Management Agency to provide data and other technical assistance for better planning for, response to and recovery from natural catastrophes.

The pool noted that CIMH was running detailed weather forecast models over Haiti to identify areas prone to landslides from flash flooding in the areas that have been affected by the earthquake “and will facilitate proactive action.”

CCRIF said it was “hopeful that the rapid payment of funds under Haiti's policy will assist the government and people of Haiti in addressing immediate needs as they begin the recovery and rebuilding process.”

CCRIF is owned, operated and registered in the Caribbean for Caribbean governments. It is designed to limit the financial impact of catastrophic hurricanes and earthquakes to Caribbean governments by quickly providing short-term liquidity when a policy is triggered.

The pool describes itself as the world's first and, to date, only regional fund utilizing parametric insurance, giving Caribbean governments the unique opportunity to buy earthquake and hurricane catastrophe coverage with lowest-possible pricing.

Sixteen governments are members of the fund. In 2007, CCRIF said it paid out almost $1 million to the Dominican and St Lucian governments after the Nov. 29, 2007 earthquake in the eastern Caribbean, and in 2008, CCRIF paid out $6.3 million to the Turks & Caicos Islands after Hurricane Ike made a direct hit on Grand Turk.

Even though most private insurers were not directly exposed to the quake damage, many top carriers rushed to arrange relief aid to Haiti to help finance relief and rebuilding efforts.

o ACE Group announced that its ACE Charitable Foundation will donate $250,000 to the American Red Cross Haiti Relief and Development Fund. The foundation will also match ACE employee donations to the Red Cross fund on a dollar-for-dollar basis.

“We are deeply saddened and disturbed by the immense loss of life, suffering and destruction that the people of Haiti have experienced,” said Evan G. Greenberg, chair and chief executive officer of ACE. “Our hearts go out to the Haitian people, who have lost many loved ones in this tragedy and face a difficult recovery effort ahead.”

o Allstate said its Allstate Foundation made a donation of $50,000 to the American Red Cross. The foundation will also match employee contributions up to an additional $50,000 for a total commitment of $100,000. In partnership with the American Red Cross, the foundation set up a Web site for employees and agency owners to give to the relief effort at http://american.redcross.org/allstate-emp.

o Aon Corp. announced it was making a $100,000 donation to the Red Cross Haiti Relief and Development efforts, and would match up to an additional $300,000 in contributions from its colleagues around the world.

o Chubb Group said it would head up a $500,000 donation effort, contributing $125,000 to Doctors Without Borders and the same amount to Share Our Strength. In addition, Chubb will match employee contributions to qualified relief organizations on a two-for-one basis, up to $250,000. If total employee donations exceed $125,000, Chubb said it will continue to match those employee dollars on a dollar-for-dollar basis.

o The CPCU Society established a special fund to aid victims of the Haiti earthquake, matching the contributions of its members and chapters up to $25,000. The funds will be donated to the Clinton/Bush Haiti Fund of former Presidents Bill Clinton and George W. Bush. Society members and chapters have been asked to submit their contributions by Feb. 19 “so that the aid can be provided expeditiously.”

o Crawford & Company, a provider of claims management solutions, contributed $10,000 to Doctors Without Borders/Medecins Sans Frontieres to aid the group's medical relief efforts in Haiti.

o New York Life Insurance Company said it would donate $100,000 and donate up to an additional $150,000 in matching contributions by employees and agents.

o Philadelphia Insurance Companies presented the American Red Cross with a $50,000 donation, teaming up with the Philadelphia CBS-affiliated television station for “Operation Brotherly Love Help for Haiti.”

o Zurich Financial Services Group said its Zurich Foundation would match up to nearly $250,000 in charitable contributions made by Zurich employees to recognized charitable organizations.

Meanwhile, the Insurance Industry Charitable Foundation called on the industry to lend help to two organizations it recently supported with grants for their humanitarian efforts. The IICF said the International Rescue Committee, with 75 years of expertise in emergency response, and World Cares Center, which supports local groups, are in need of funds to support the relief effort in Haiti.

Contributions can be made to IRC at www.theirc.org/donate/donatenow-haiti and to World Cares Center at www.worldcares.org/content/donate-world-cares-center.

The IICF is also asking to be informed of industry giving by contacting it through e-mail at [email protected].

In terms of the damage caused, RMS said buildings in the region tend to be built with heavy materials (concrete, or masonry), with little or none of the lateral reinforcing needed for earthquake resistance.

“Around Port-au-Prince there's a striking contrast of high-end properties and shanty housing extending up the hillsides, with no building regulations in force to protect against earthquake damage,” said Neena Saith, senior catastrophe response manager at RMS.

She noted reports of hundreds of buildings having collapsed in Port-au-Prince, including the presidential palace, the World Bank local offices, hotels, a hospital, the university and the United Nations headquarters. Hundreds of other buildings have also been destroyed or sustained severe damage. Hundreds of thousands of people are estimated to be homeless.

Mary Lou Zoback, vice president for Earthquake Risk Applications at RMS, said Haiti is the poorest country in the Western Hemisphere, with 80 percent of the population living under the poverty line and over 50 percent in abject poverty.

“As rural poor migrate to the major cities they often take up residence in shanty towns on the city margins. They live in self-constructed homes, built using available materials. This substandard construction cannot stand up to the frequent hurricanes, landslides and earthquakes that strike so many capital cities such as in Latin America, including Port-au-Prince,” she said.