Chile has agreed to an earthquake insurance program with the World Bank protecting it from $630 million worth of damage from strong earthquakes, in an effort to shore up risks to public debt from possible natural disasters.
The insurance will cost 4.75% of the total value of the insurance each year, the finance ministry said in a statement.
The South American nation is located in the so-called Pacific Ring of Fire, an area characterized by frequent earthquakes and active volcanoes.
