Back in November 2025, I had the opportunity—along with several colleagues—to present a seminar at a Lloyd’s Syndicate in London focused on earthquake insurance claims and the evolving risk landscape. The discussion reinforced a broader reality across the industry: earthquake claims are becoming more complex, more technical, and more time-sensitive than ever before.

Here’s is the update.

Secondary Impacts Are Driving Complexity

Modern earthquake claims often extend beyond visible structural cracking. Increased attention is being placed on:

• Ground settlement and liquefaction
• Landslides and slope instability
• Utility failures
• Fire-following and water intrusion
• Business interruption tied to access limitations

These losses are rarely straightforward and increasingly require coordinated engineering analysis and early causation clarity.

Causation Scrutiny Is Increasing

Policy language is being tested more frequently, and expert opinions are facing deeper examination.

Common disputes include:

• Pre-existing damage vs. quake-related damage
• Structural vs. cosmetic cracking
• Earth movement exclusions
• Liquefaction and foundation displacement

Clear documentation, defensible reporting, and early expert involvement are becoming essential to prevent escalation.

Surge Capacity Is Now a Requirement

When a seismic event occurs, claim volume spikes immediately. Delays in inspections can slow reserves, coverage determinations, and communication with insureds.

The new standard emphasizes:

• Rapid deployment capability
• Licensed engineering support
• Flexible overflow capacity
• Defined response timelines

Speed is no longer just service—it is loss control.

Technology Is Raising Expectations

Drone imaging, 3D scanning, and digital reporting have improved visibility and efficiency. However, the value comes from expert interpretation and clear reporting that supports decision-making.

Documentation standards are higher, and expectations continue to rise.

Business Interruption Remains the Wildcard

In commercial earthquake claims, business interruption can quickly exceed physical damage. Structural assessments, occupancy restrictions, and code compliance opinions all influence downtime calculations.

Early coordination between technical experts and claims teams can significantly reduce friction.

The Bottom Line

Earthquake risk is not static. Urban density, aging infrastructure, and regulatory pressures are reshaping exposure.

Successful claims handling in 2026 increasingly requires:

• Rapid response
• Strong causation analysis
• Clear documentation
• Coordinated technical expertise
• Consistent communication

When the shaking stops, disciplined execution is what protects both the insured and the carrier.