Japan Quake Boosts Demand for Insurance in Macedonia

Skopje's Old Railway Station is a reminder of the 1963 earthquake | Photo by: Richard Schofield

As the ground in Japan continues to shake from frequent aftershocks one month after a massive earthquake and tsunami devastated parts of the country, Macedonian insurance companies have reported a record demand for their services, especially for insurance policies against earthquakes and other natural disasters.

They explain that after the earthquake and tsunami in Japan, which left more than 10,000 dead and hundreds of thousands homeless, awareness among Macedonians is rapidly increasing.

“This kind of insurance is not expensive. It is simply a matter of whether you are aware of this type of danger or not,” the head of QBE Insurance Macedonia, Bosko Andonov, says.

He explains that his company has marked a surge in demand for insurance since the Japan disaster.

“Interest has risen considerably, especially for individual households, and less so for commercial space,” Andonov says.

The CEO of Vardar Insurance, Trajce Latinovski, confirms the increased interest in earthquake insurance.

“This additional insurance covers the expenses for reconstruction or for an entirely new building,” he says. “As expected, the events in Japan have increased interest.”

The prices for household insurance in Macedonia vary from firm to firm, ranging from €50 to €100 per year for an average flat of about 60 square metres.
 
But local insurance agents say that despite the recent interest, Macedonia still lags behind developed western countries in property insurance, with only about eight per cent of households insured.

In comparison, statistical data from the Home Office in the UK, a country with one of the largest insurance industries in Europe, show that nearly 80 per cent of UK households have home contents insurance and more than 60 per cent have building insurance.

Macedonia suffered its last major earthquake in 1963, when the capital Skopje was nearly flattened by a 6.9 magnitude quake. More than 1,000 people lost their lives in the disaster and more than 200,000 lost their homes.

Local architects say that the vast majority of Macedonian buildings, especially those built after the 1963 earthquake, are seismically solid because of stricter criteria put in place after the quake.