Morocco Earthquake

On the 13th of September, Morocco experienced the deadliest earthquake in six decades. A 6.8-magnitude quake struck 70km south of Marrakech in Al Haouz.

Morocco, especially the northern region of the country, is located right above the fault line between the African and Eurasian tectonic plates with the coordinates of this quake being 31.110°N and 8.440°W.

It has been reported that the regions mainly affected are mountainous villages, with buildings damaged, from homes to Mosques such as Marrakesh’s famous Koutoubia Mosque.

It is stated as being estimated by the World Bank, that the earthquake could cost the economy 8% of Morocco’s GDP (around $10.7 billion)

Morocco has a social safety net catastrophe insurance system in place, which provides households and organisations low-level coverage, through a World Bank support scheme, as well as a social protection system to compensate uninsured people through a national solidarity fund.

 

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BUSINESS INTERRUPTION COVERAGE ISSUES

• Government assistance considerations
• Identification of the cause of loss and other contributing factors
• Supply chain and drivers of revenue streams
• Isolating non-loss-related factors
• Currency and local lending considerations
• Early involvement of the appropriate experts can help with the need for any mitigation efforts.

MDD has considerable expertise in dealing with these types of claims and the complexities that may occur.  Experts like those of us at MDD will stress the need for proper audit protocols, controlling and sorting of costs and accounting for any potential saved expenses.