The proposal presented by the insurance regulator covers different scenarios and values adjusted to the severity of the seismic risk. ASF also wants seismic certification to be mandatory for buildings.
The Insurance and Pension Funds Supervisory Authority (ASF) has already submitted the expected proposal to the Ministry of Finance for the creation of a fund to protect against seismic events in Portugal, as reported by Expresso (paid access). Under the leadership of Margarida Corrêa de Aguiar, the organization advocates compulsory insurance for seismic risk, similar to what is already practiced in countries like Spain and France, highlighting the need to comply with building regulations related to seismic safety.
According to the ASF president, and as stated in the proposal, “various scenarios have been drawn up for different levels of severity: low, medium and severe risk”, so that “the risk materializes as little as possible in terms of damage”. So, she believes that “there should be seismic certification”, just as energy certification already exists. This would make it possible to recognize the risks and adapt the price of home insurance, she believes.
ASF also proposes that the seismic fund should not only cover risks to homes, but also to the commercial and industrial sectors. However, according to Margarida Corrêa de Aguiar, this is a “political decision”. “An earthquake of great magnitude could have a devastating impact on the economy” and compromise ‘the country’s financial stability’, she emphasized. The banking sector also plays an “important role” in encouraging people to take out insurance that covers risks such as fire and multi-risk, as well as protection against seismic risks, she said.
