What's Happening?
Risksmith Insurance Services, a specialty Managing General Underwriter, has launched a new Difference in Conditions (DIC) Earthquake insurance program. This program is designed to cater to large, complex,
and high-risk properties that are often avoided by other markets. It offers flexibility and high limits without a Total Insured Value (TIV) maximum, making it suitable for properties in major earthquake zones such as California, the Pacific Northwest, and the New Madrid Seismic Zone. The program provides coverage for earthquake, earth movement, and earthquake sprinkler leakage, with options for primary, quota share, or excess placements. Ravi Patel, the executive vice president and head of property at Risksmith, emphasized the program's flexibility and the company's commitment to responsible risk-taking and long-term value creation.
Why It's Important?
The introduction of this program is significant as it addresses a gap in the insurance market for properties that are considered high-risk due to their location in earthquake-prone areas. By offering coverage without a TIV cap, Risksmith is providing a solution for property owners who struggle to find adequate insurance. This could lead to increased stability in the real estate market in these regions, as property owners can now secure insurance that meets their needs. Additionally, the program's flexibility allows brokers and insureds to tailor coverage, potentially leading to more competitive pricing and better risk management strategies.
What's Next?
As the program rolls out, it is likely to attract interest from property owners and brokers dealing with high-risk properties. The success of this program could encourage other insurers to develop similar offerings, increasing competition and potentially leading to more innovative insurance solutions. Stakeholders in earthquake-prone regions will be closely monitoring the program's impact on insurance availability and pricing. Additionally, the program may prompt discussions on risk management and preparedness in these areas, influencing future policy and infrastructure development.
