(Reuters) - Oklahoma has become an earthquake hot spot in recent years, as booming oil and gas production has led to an increase in the injection of wastewater into deep underground caverns, pressuring faults.
Homeowners have responded by seeking to insure themselves against the risk. But many insurance companies, fearing a large quake could follow next and cause costly damages, have sought to limit their exposure by exiting the market, raising deductibles, or hiking premiums. Below is a summary of changes insurance companies have made in the state in recent years, based on Oklahoma Insurance Commission filings:
Company Date Action
Armed Forces Aug 8, 2014 Increases earthquake premiums by 1-3 cents per
Insurance $1,000 of coverage
Exchange
Chubb Ltd Dec. 19, Increases earthquake premiums to $0.33 per $1,000
CB.N 2014 of coverage from $0.30.
Country Sept. 11, Increases earthquake deductible from 5 percent to
Mutual 2015 10 percent “in an effort to address exposure
Insurance management.” Lowers premiums to compensate
Company consumers.
EMCASCO May 7, 2014 Eliminates option for 5 percent deductible,
EMCI.O meaning lowest available deductible is 10
percent. Increases premiums by earthquake
coverage by 1-2 cents per $1,000 of coverage.
Farmers Sept. 9, Increases earthquake premium in one type of plan
Insurance 2015 to $0.403 per $1,000 of coverage, up from $0.345
Company, Inc. in some plans and $0.259 in others. A spokesman
said the company’s changes were made to “reflect
the increased risk.”
Nov. 9, 2015 Eliminates option for 2 percent deductible in one
type of plan, meaning lowest available deductible
is 5 percent
Oct. 6, 2014 Increases premiums by 50 percent in one type of
plan, which the company said in a filing was “to
account for the higher exposure and the need to
reinsure the risk.”
Great May 30, 2014 Increases earthquake premiums by as much as 260
Northwest percent to match competitors’ rates, particularly
Insurance Travelers. A spokesman said the company was
Company seeking to grow its Oklahoma earthquake program,
after not actively marketing it for several
years, and looked to other insurers’ rates for
guidance.
The Hartford Oct. 24, Issued a moratorium to no longer offer new
2014 earthquake coverage in Oklahoma
Horace Mann Dec. 22, Increased earthquake premiums by 1-2 cents per
Insurance 2014 $1,000 of coverage “so that they are more closely
Company aligned with our competitions’ rates”
Nov. 10, Once again hikes earthquake premiums by 1-2 cents
2015 to match competitors
Oklahoma Farm Feb 5, 2011 Removed earthquake coverage from existing plans
Bureau Mutual
Insurance
Company
Travelers Nov. 4, 2014 Stopped writing new earthquake coverage in
Companies, Oklahoma “to manage our exposure to earthquake in
Inc TRV.N the state," according to filings for several
types of plans
Reporting By Luc Cohen
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