Chile mudslide affected neighborhoods with higher insurance penetration: AM Best

By Navneeta Nandan Oct 16 (The Insurer) — AM Best said on Thursday that the estimates of storm-triggered mudslide insured losses in Santiago, Chile, are ongoing, adding that Chile has the second-highest insurance penetration in Latin America, which was almost 5% of the GDP in 2025. The insurance activity is geographically concentrated in Santiago. The neighborhoods affected by the catastrophe are likely to have higher insurance penetration, mainly for homeowners and commercial property, due to the socio-economic level of the area, along with auto and transport for the affected vehicles and buses. The rating agency added that sound catastrophe protection remains paramount for Chile. Preliminary reports have stated that 56 homes were destroyed, 40 had major damage and 1,960 had minor damage. The event did not lead to any casualties, but it left 384 people affected and 1,000 evacuated, as per the Chilean National Disaster Prevention and Response Service. In October, AM Best had maintained a stable outlook for the insurance segment in Chile, supported by "sound reinsurance protection, strong regulatory framework, and sophistication of the insurance market". On October 8, Las Condes, a