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Social Issues, Environment

Prediction: Expect increased liability exposure for electricity companies

Social Issues, Environment
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Prediction

Due to climate change and greater chances of unprecedented heavy storms, it is expected that more power outage-related incidents will take place in Chile. This will increase liability exposure for electricity companies (especially electricity distribution) as: i) the consumer authority has taken an aggressive role by initiating class actions on behalf of consumers against electricity companies for greater damages than those historically awarded; and ii) for the first time in Chile's history, a civil court granted compensation for moral damages to consumers that were affected by a power outage. This has opened the door to new claimants and new damages, both of which will require more attention by underwriters.

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