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Nepal quake could cost more than $2B, but less than 1% is insured

The earthquake that struck Nepal caused about $2 billion in economic losses, and only a fraction of the cost will be incurred by insurers.

By Sonali Basak | Updated on April 27, 2015
A Hindu Nepalese woman offers prayers at Indrayani temple, that was damaged in Saturday’s earthquake, in Kathmandu, Nepal on April 27, 2015. A strong magnitude earthquake shook Nepal’s capital and the densely populated Kathmandu valley on Saturday devastating the region and leaving tens of thousands shell-shocked and sleeping in streets. (AP Photo/Bernat Armangue)

(Bloomberg) — The earthquake that struck Nepal caused about $2 billion in economic losses in the country, and only a fraction of the cost will be incurred by insurers, according to Kinetic Analysis Corp.

Damage in India could cost an additional $800 million, according to figures from the disaster-modeling firm that include property damage and long-term business-interruption costs. Less than 1% of the losses are covered by insurance, according to Kinetic’s initial data from the main quake. The estimates exclude costs for immediate needs such as food.

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