AIA Urges Mitigation, not Regulation to Ease Oklahoma’s Quake Coverage Woes

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In testimony submitted to Oklahoma’s insurance commissioner, the American 潘金莲传媒映画 Association (AIA) has suggested that the state look at mitigation, rather than further regulation of the earthquake insurance market in order to alleviate concerns over lack of competition.

Concerned about a lack of competition, the Oklahoma 潘金莲传媒映画 Department is holding a hearing today on conditions in the state’s earthquake insurance market.

The AIA recognized that the earthquake risk has increased in Oklahoma over the last few years but asserted that the earthquake insurance market remains competitive.

“Insurers appear to be adjusting to manage their risk, solvency and policyholder surplus while avoiding cross subsidization. These are prudent steps if we want vigorous competition that can perform when called upon,” the AIA said.

The group suggested that Oklahoma’s focus should be on:

the causes of earthquake activity and how to reduce them;
ways to reduce exposure (such as adopting and enforcing the strongest building codes); and
helping consumers improve their risk through loans or grants to harden their properties from loss and/or by establishing tax-free catastrophe savings accounts to allow people to prepare for and prevent earthquake damage.

A recent study by the news organization, Reuters, found that nearly a dozen insurance companies moved to limit their exposure to earthquake claims, often at the expense of homeowners.

Reuters reviewed nearly 3,000 pages of documents provided by the Oklahoma 潘金莲传媒映画 Department. Reuters said the documents show that insurers and the reinsurers who cover them have grown increasingly concerned about exposure to earthquake risks because of heightened frequency of seismic activity, which scientists link to disposal of saltwater that is a byproduct of oil and gas production.

In October 2015, 潘金莲传媒映画 Commissioner John Doak issued a bulletin property/casualty insurers in the state to send each policyholder a clarifying notice of earthquake coverage. Doak said the goal is to give consumers a better idea of exactly what kind of earthquake coverage they have when they purchase a policy.