Best’s Commentary: Seismic Activity in Southwest Peru Not Expected to Generate Severe Insured Losses
- August 28, 2026 04:14 PM (EDT)
//BestWire// - AM Best expects insured losses from a recent earthquake in Peru to be limited due to low insurance penetration near the epicenter.
In its Best’s Commentary, “Seismic Activity in Southwest Peru is Not Expected to Generate Severe Insured Losses,” AM Best states that insurance penetration in Peru is low at approximately 2% of GDP in 2025, with insurance activity geographically concentrated. As of June 2026, Lima accounts for over 80% of total insurance premiums. The 7.2-magnitude earthquake on Aug. 20, 2026, struck in the southwest portion of the country near Coracora in the Parinacochas province.
Preliminary reports state 83 homes and approximately 20 schools, as well as health centers, public facilities and transport routes, were damaged. However, the full scope of insured losses remains subject to ongoing assessments.
“Given that Peru is exposed to a high number of potential natural catastrophes, increased insurance penetration, as well as availability and affordability of reinsurance, remains paramount for the country,” 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=368106.
AM Best maintains a stable outlook on Peru’s insurance segment. To view the market segment outlook report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=366830.
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.