Following the devastating earthquake that recently struck Morocco, insurance company Gallagher Re is in talks with reinsurance firms to expedite the disbursal of $300 million in insurance compensations to the deserving Moroccan citizens. This was revealed by Nicolas Mounier, a partner at the Catastrophic Incident Solidarity Fund at Gallagher Re, in an interview with “East Economy”.
Last week, Morocco experienced its most severe earthquake in a century, registering 6.8 on the Richter scale. The catastrophe resulted in over 2,900 casualties, thousands injured, and approximately 50,000 homes damaged, according to official data from the Moroccan government.
The Moroccan government had signed a contract with Gallagher Re in 2020, which includes compensation capped at $275 million, with a provision to increase by $25 million in the event of natural disasters, a reliable source from the Catastrophic Incident Solidarity Fund informed “East Economy”. The international insurance company confirmed that this contract provides coverage for uninsured citizens, including property and its owners, in the event of disasters like this earthquake. The funds are expected to be released soon after an assessment.
Nicolas Mounier stated, “Since the earthquake, our team has been working around the clock on data gathering and loss estimates. We are also engaging in discussions with reinsurance companies to ensure that the rightful insurance payments reach the Moroccan people as soon as possible to aid in their recovery and rebuilding.”
Furthermore, the International Monetary Fund (IMF) has reached an agreement with Morocco to offer a loan of $1.3 billion. This initiative aims to bolster the country’s resilience against climate-related disasters through the Fund’s new Flexibility and Sustainability mechanism, as mentioned by Kristalina Georgieva, the Managing Director of the IMF, last Thursday.
Earlier this week, the Moroccan government initiated a fund to collect financial donations from its citizens, governmental, and private enterprises to manage the earthquake’s aftermath. Initial estimates, based on the most significant announced contributions, suggest a collection of around 6 billion dirhams by the end of the week, as per “East Economy”.
