A rise in reinsurance costs, insurance capacity shortages from Hurricane Katrina and a shift in catastrophe modeling services have reduced availability of earthquake damage coverage, an insurance brokerage firm warned today.
J.C. Sparling, executive vice president of Mercator Risk Services, an independent wholesale insurance broker in New York said, “While commercial insurers in California have become an obvious victim of this shortage, a less obvious–but still vulnerable–area lies along the New Madrid Fault Line, which extends through areas including St. Louis and Memphis.”
He said other areas also considered vulnerable are the Pacific Northwest, including Seattle, Portland, Ore. and Alaska.
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