This week marked the one-year anniversary of the Haiti earthquake, while the first anniversary of the Chilean earthquake is coming up next month (Feb. 27, 2011).

Remembering these two catastrophes highlights the fact that in the insurance world, the same perils can have very different outcomes.

The 7.0-magnitude Haiti earthquake resulted in 220,000 fatalities, and was the deadliest event in 2010. It was also the deadliest natural disaster since 1983, according to Munich Re.

Yet, despite the high level of fatalities, in terms of insured losses, the impact of the Haiti quake was minimal. This is because Haiti's private insurance market is very small, though its government did provide a level of insurance coverage to its citizens by being a member of the Caribbean Catastrophe Risk Insurance Facility (CCRIF).

In contrast, the 8.8-magnitude earthquake and tsunami in Chile resulted in only 520 fatalities, but was the costliest disaster in 2010 with insured losses totaling $8 billion and economic losses of $30 billion. It was also the second costliest earthquake for the insurance industry since 1950, according to Munich Re.

It's important to mention that the relatively low death toll in the Chile quake was due in part to the enforcement of strict building codes in a country that has a long history of earthquakes.

At the Property/Casualty Joint Industry Forum held in New York City this week, one topic of discussion was the role of insurance in managing and reducing future losses from catastrophe events, including earthquakes.

Several panelists highlighted earthquake risk as an area of concern and a potential growth opportunity for insurers.

In the U.S., California remains the state most at risk of a major earthquake. Yet only about 12 percent of Californians now purchase earthquake coverage, compared to about 30 percent in 1994 when the Northridge earthquake struck.

Insurance Information Institute (I.I.I.) facts and stats show the Northridge earthquake, which struck Southern California on Jan. 17, 1994, was the most costly quake in U.S. history, causing an estimated $15.3 billion in insured damages when it occurred ($22.2 billion in 2009 dollars).

California is not the only part of the U.S. at risk of a major earthquake. This December marks the 200th anniversary of one of the largest earthquakes in U.S. history along the New Madrid fault in Missouri, where a series of quakes in 1811 and 1812 included at least three of 7-8 magnitudes.

Earthquakes that occur in and around the New Madrid fault zone potentially threaten parts of seven U.S. states: Illinois, Indiana, Missouri, Arkansas, Kentucky, Tennessee, and Mississippi, according to the U.S. Geological Survey (USGS).

Persuading people to buy earthquake insurance remains a key challenge for insurers. A recent report from cat modeling firm EQECAT noted that financial preparation for earthquakes is surprisingly modest in much of the developed world.

EQECAT pointed out that, like California, take-up of earthquake insurance in Japan is low, at estimated rates of 10 percent.

It suggested that minimizing physical and economic ruin from future earthquakes will require continued investment in public infrastructure as well as creative ways to improve insurance penetration and provide credible financial backstops.

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