Earthquake-insurance prices soar in Washington, and companies hold all the power [View all]
State Farm collected $350 million in premiums from Washingtonians over a decade by betting against earthquakes in the state. It concluded that wasn’t enough.
In 2014, the company filed documents with Washington state’s insurance regulator seeking approval to raise earthquake rates around the state, including by 39 percent for commercial property in King County and by 117 percent for Grays Harbor and Pacific counties.
A state insurance official called State Farm’s proposed profit “absurdly high” and objected to any rate increase, according to state records. But the regulator, negotiating on the public’s behalf, was at a disadvantage: Insurers in Washington don’t have to offer earthquake insurance if they dislike the terms, and State Farm is the state’s largest licensed provider of quake coverage.
When the company refused to back down, Washington’s insurance regulator approved the rate hike, as requested.
Read more: http://www.seattletimes.com/seattle-news/earthquake-insurance-prices-soar-in-washington-companies-hold-all-power/
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