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Milliman on Fracking: Pollution Liability Coverage Could Be Inadequate

Source: A.M. Best

Posted on 19 Jul 2012 by Neilson

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MillimanConsulting actuaries Richard Soulsby and Jason Kurtz of Milliman say in a disaster scenario involving hydraulic fracturing, or fracking, comparable historical pollution events show pollution liability limits could be dwarfed by fracking-related pollution claims.

Soulsby and Kurtz authored a report on the subject, which notes industry regulators should require companies to have sufficient insurance or other financial resources to cover the costs of these types of events. Soulsby said capacity likely would follow as regulation increased, and Kurtz said risk controls put into place today would ensure the public won't be left "holding the bag" down the road.

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