Monday, July 6th, 2026 — Verisk estimates that the June 24 earthquake sequence in Venezuela will generate more than $10 billion in economic losses, making it one of the country’s most significant natural disasters in modern history. The event began with a magnitude 7.2 foreshock followed just 39 seconds later by a magnitude 7.5 mainshock along the San Sebastián fault system. More than 430 aftershocks followed, causing extensive damage across northern Venezuela, particularly in Caracas, La Guaira, Aragua, Carabobo, and Yaracuy.
For insurance claims professionals, the report underscores the difference between economic losses and insured losses in markets with limited insurance penetration. Verisk notes that estimating the insured portion of losses is especially difficult because of Venezuela’s high inflation, currency instability, regulatory challenges, sanctions, and the limited size of the country’s insurance market. Those factors complicate property valuations and claims forecasting following a major catastrophe.
The report also highlights how local building construction influences earthquake losses. Much of Venezuela’s residential building stock consists of masonry construction, while reinforced concrete dominates larger urban buildings. Although seismic design standards exist, differences in construction quality and code enforcement can significantly affect damage outcomes, making engineering assessments an important part of the claims process.
Verisk’s modeled insured loss estimate excludes several common sources of post-event losses, including fire following, landslides, infrastructure damage, loss adjustment expenses, marine and aviation risks, and other non-modeled exposures. For adjusters and catastrophe response teams, those exclusions serve as a reminder that modeled industry losses often represent only a portion of the total financial impact following a major earthquake.
