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Following quakes, Pacific Alliance countries eye collective insurance plan

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Following quakes, Pacific Alliance countries eye collective insurance plan

Member countries of the Pacific Alliance trade bloc in Latin America are in talks with the World Bank to create a collective insurance policy that would aim to spread their risks against earthquakes, AFP reported Oct. 14.

Chile, Colombia, Mexico and Peru plan to discuss details of the regional insurance plan during an annual meeting of the World Bank and IMF in Washington, D.C., with the hope that such a policy could launch at the start of 2018.

"Insofar as it is collective, the risks are diversified: if there is an earthquake in one of the countries it is less likely that there will be another in the rest and that makes the premium a little lower," Colombian Finance Minister Mauricio Cárdenas was quoted as saying.

The move toward a collective policy comes as all of the countries involved have high risks of seismic events. Mexico has had two major earthquakes strike within its borders in the past month.