For the regulator, the data reveals insufficient coverage that could jeopardize the country's ability to recover from a seismic catastrophe, according to a report by ECO.

The regions in which insurers most concentrate insurance capital in the housing segment with Seismic Phenomena (FS) coverage are the Algarve, Lisbon, and Vale do Tejo, and Porto. The first two regions are also the areas with the highest seismic risk nationally.

“This fact suggests the existence of some adverse selection of risk, to the detriment of diversification between more and less exposed areas and the consequent mutualisation of risk between areas that would result”, reads the report.

Still, on this subject, the ASF states that there is a “natural limit” to diversification due to the concentration of buildings, tending to be of higher value, in areas more exposed to seismic risk, such as on Lisbon and the Algarve.