Trébol

Year XV / 2010
MAPFRE RE

Editorial

2010 will be a difficult year to forget in Chile. During the early hours of the morning of 27 February, the inhabitants of the country's central region were awoken by an earthquake of major intensity. The disruption of activities in this region continued for several months. Estimates suggest that the rupture of the fault plane extended over a distance of 400 to 500 kilometers, and the waves of the tsunami that was generated immediately afterwards reached a maximum height of some 11 meters. The lessons learned from the earthquakes of 1960 in Valdivia and 1985 in Valparaíso were incorporated into strict regulations on earthquake-resistant design, which yielded obvious benefits in 2010. Significant damage was nevertheless inflicted on major elements of the infrastructure, making access to the afflicted zone even more difficult. As regards the earthquake's impact on the insurance and reinsurance market, the final total may well exceed the range from 8,000 to 10,000 million dollars, on account of coverage for losses due to business interruption cover and its interpretation. Another factor that is delaying the final assessment is the complex nature of loss adjustments for the large risks and mortgage portfolios, on which work is continuing. The spirit of unity shown by the Chilean people in the face of this huge disaster was another manifestation of the courage of a nation which -in a contrasting scenario- watched as the 33 miners who were trapped in the bowels of the earth for several weeks emerged one by one to safety. On behalf of TRÉBOL, we offer our congratulations to the entire country and in this issue, we are dedicating our whole section of articles to the single subject of the Maule earthquake.

June 2010 saw the end of Spain's presidency of the European Union, so TRÉBOL invited the Director-General of Insurance and Pension Funds in Spain to review the work undertaken in the insurance sector during this period. Although Solvency II was by far the most dominant subject at meetings of the national and European markets, Mr. Ricardo Lozano also analyzes the Spanish Law on Insurance Contracts, the Mediation Directive, Spain's standard scale for personal injuries and the way the crisis has impacted our sector. Despite the scope of the changes taking place in insurance activities -especially as regards supervision and financial strength- it is clear that progress is still being made towards the targeted objectives, thanks to cooperation among all the players in the system.

Good companies enable their employees to prosper, and good professionals play their part in the expansion of business activities. This was confirmed by our interview with Jesús Galeote to mark his 25 years with MAPFRE RE. During this period, he has acquired expertise in the various business areas of a reinsurance company; he describes experiences ranging from his temporary posting in Brussels to his regular visits to the distant markets of Australasia, the region for which he is currently responsible. Jesús Galeote's professionalism is a key factor in our company's future development.