May 12, 2016 / 5:10 AM / 4 years ago

Factbox: Changes in Oklahoma earthquake insurance policies

(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”

(HMN.N)

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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