Blog #7

Colby Veirs

SOC 202

Sills

10/14/11

Blog #7

Earth Quake Insurance

            A recent earthquake in Japan lead to reveal cracks in the insurance system that makes more people choose to not apply for the safety backup coverage creating changes in the insurance industry. While in the act of buying and living in a house where for the area it is very possible for their to be tectonic plate activity that causes the world to shake because of shifting under ground that could go off at any point due to natural causes. It was on March 11 when the devastating earthquake struck Japan with a magnitude of 9.0 that killed more then 28000 people due to the destruction and subsequent tsunamis that cleared the cities development. In the aftermath of the earthquake everyone was still trying to figure out what happened to all in this shocking situation that left them with basically nothing. After this event everyone decided they would become more prepared if another one were to come later and they would be ready and prepared for it. The modeling systems the insurance industry uses to predict where disasters will happen and how much they will cost never factored in an earthquake the size of the one that hit Japan. This surprising incident created many problems for the people it affected and scarred everyone else into acquiring some sort of insurance. In California 1 out of 10 people have insurance and that number truly needs to change because their has already been predictions of more in the near future around the pacific. When in need of insurance the companies can also raise their prices if there is a greater demand for it, making it harder for all to acquire it due to their steep rising prices. This insurance should be cheap enough for all in the areas it occurs in and more people will have fewer problems when it comes to natural disasters.

http://www.reuters.com/article/2011/04/05/us-insurance-earthquakes-idUSTRE7344GF20110405