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New Insurance Products May Be Needed for Oklahoma Earthquakes

Swiss Re reports that new insurance products that would take into account multiple shaking events may be needed for Oklahoma and other states dealing with an increase in the frequency of earthquakes...
September 14, 2016

OK Earthquake

Swiss Re reports that new insurance products that would take into account multiple shaking events may be needed for Oklahoma and other states dealing with an increase in the frequency of  earthquakes. The report was released in August, before a magnitude 5.8 earthquake struck near Pawnee, Oklahoma.

Oklahoma Insurance Commissioner John Doak has directed his staff to review the moratorium periods in Oklahoma earthquake policies. “You don’t want to take on any more policies if you have an event and put the financial solvency of your company at risk,” he said. “I do believe we sent a message to the industry that we’re paying attention to this in Oklahoma, but we’re also protecting consumers. If they need a rate increase for some reason, they need to explain that to us in greater detail than the normal use-and-file system we have in the state.”

READ: Oklahoma Earthquake Coverage Map

Doak said the Swiss Re report is a good summary of the risks facing the market and that insurance coverage with a lower deductible to cover more frequent events likely would have a higher premium than the catastrophic coverage currently offered by insurers.

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