Best’s Commentary: Chile Mudslide Highlights Importance of Insurance Protection
- October 15, 2026 01:03 PM (EDT)
//BestWire// - Given Chile’s vulnerability to catastrophe-related risks such as seismic and volcanic activity, as well as floods, intense storms, megadroughts and wildfires, insured and economic losses from a recent mudslide highlights the need for adequate protection in the region, according to a new AM Best commentary.
The mudslide in Las Condes, a municipality located in the northeast region of Santiago, was triggered by intense storms in Chile. A sudden flood of the Honda stream carried between 250 and 330 thousand cubic meters of water, mud, rocks and plant debris to the urbanized areas of San Carlos de Apoquindo, a residential and university area. No lives were lost; however, the area has been declared a disaster zone, with preliminary damage estimates stating that 56 homes were destroyed with another 2,000 homes suffering major or minor damage.
The Best’s Commentary, “Chile Mudslide Highlights the Importance of Insurance Protection,” notes that insurance penetration in the country is the second highest in Latin America; however, insurance activity is geographically concentrated in Santiago. The full scope of insured losses remains subject to ongoing assessments, as the mudslide swept away cars and buses, and caused damage to clinics, universities and other commercial buildings.
“The neighborhoods affected by the mudslide are likely to have higher insurance protection, mainly for homeowners and commercial property, given the socioeconomic level of the area, in addition to auto and transport for the affected vehicles and buses,” said Inger Rodriguez, senior financial analyst, AM Best.
To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=369718.
AM Best recently maintained a stable outlook for Chile’s insurance segment, citing carriers’ sound reinsurance protection, as well as a strong regulatory framework and sophistication of the insurance market. To view the outlook report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=369461.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.