Supplementing a state’s traditional earth-quake insurance to provide better coverage

Each year, the Utah region experiences about 700 earthquakes (including aftershocks). Most of those events produce no visible shaking, but an average of 13 earthquakes of magnitude 3.0 or larger occur in the region every year.

In 2020, the Salt Lake City area was hit with a 5.7 magnitude earthquake, which was the state’s strongest earthquake in nearly 30 years.

The event caused significant economic losses, exacerbating the impacts of the global COVID-19 pandemic that had already hurt the region's economy.

The State of Utah bought our parametric insurance product ‘QUAKE’ to supplement their traditional earthquake insurance and cover deductible expenses. The solution provides quick payment and flexibility in how funds can be used.

The structure provides a dynamic payout that increases with the intensity of shaking and geographic spread of extreme energy, providing cover to various locations within the state.

The parametric cover provides protection against economic losses, covering costs that the U.S. Federal Emergency Management Agency (FEMA) will likely not reimburse.