The states in the New Madrid Region (Illinois, Indiana, Missouri, Kentucky, Tennessee, Arkansas, Missouri, Mississippi and Alabama) face a greater threat than the majority of other areas of the country largely because cities have become complacent with little to no earthquake activity in recent times. The U.S. Geological Survey believes the probability of a magnitude 6 to 7 earthquake occurring in the New Madrid seismic zone sometime in the next 50 years is higher than 90 percent. And because it is not possible to predict earthquakes, the quake could come at any time.

The states within the New Madrid Fault Zone can do a better job preparing their citizens and protecting them from catastrophe.  

Encouraging and enforcing stronger building codes will also help minimize damage and speed recovery in the case of catastrophe. Some structures, such as the I-40 Bridge over the Mississippi River in Memphis, are the exception. The bridge was retrofitted with Friction Pendulum isolation bearings designed to withstand a magnitude 7.0 earthquake. Officials in the New Madrid States need to prepare more structures for the eventuality of an earthquake. In the long run, the upfront costs of building to code are an investment in the future.  For every dollar put into mitigation, we can save $3 to $5 in future losses. Stronger building codes, enforcement, education, planning and preparedness will save lives, reduce property losses and protect neighborhoods from the damage of future catastrophes.

In the case of a mega-catastrophe, states in the New Madrid Fault Zone will undoubtedly turn to the federal government for financial recovery assistance.  Rather than waiting for a crisis and reacting to an emergency, ProtectingNewMadrid.org believes lawmakers should make it a top priority to establish a comprehensive, integrated solution that includes a national catastrophe fund in order to provide greater economic protection at a lower cost to the people who are at the greatest risk.   Such a solution would establish needed financial protections before catastrophe strikes, while also mitigating the damage of a future catastrophe by improving building codes, strengthening first responders, improving land use planning, enhancing public education and incorporating a process of continuous improvement.

Illinois Insurance Director Michael McRaith has been pushing for a national solution with his colleagues in the National Association of Insurance Commissioners (NAIC). 'Nationally, at the NAIC level, in terms of reforms, we worked to develop a framework for a national approach to natural catastrophes that would call for state or regional catastrophe funds and then add a third layer of privately funded monies, but managed at the federal level.'

A national catastrophe fund – financed by private insurance dollars – provides a necessary backstop for the private insurance market to help families, businesses and communities in the case of extraordinary events.

Learn more details regarding a comprehensive, integrated solution, including strengthening first responders, preventing problems through stronger building codes and consumer education, and advocating for a financial backstop.