slide1
Download
Skip this Video
Download Presentation
California Earthquake Authority July 2010

Loading in 2 Seconds...

play fullscreen
1 / 10

California Earthquake Authority July 2010 - PowerPoint PPT Presentation


  • 104 Views
  • Uploaded on

California Earthquake Authority July 2010. Glenn Pomeroy Chief Executive Officer. California. 99% chance of a major earthquake (M6.7) within the next 30 years. Majority of Californians live within 20 miles of a major fault. CEA Today….

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' California Earthquake Authority July 2010' - shaina


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

California Earthquake Authority

July 2010

Glenn Pomeroy

Chief Executive Officer

slide2

California

  • 99% chance of a major earthquake (M6.7) within the next 30 years.
  • Majority of Californians live within 20 miles of a major fault.
cea today
CEAToday…
  • Largest provider of earthquake insurance in the United States
  • More than 800,000 policies in force
  • Writes 70% of all California residential earthquake insurance policies
cea governance
CEA Governance

Assembly Speaker

Senate Rules

Chair

Treasurer

Voting members

Non-voting members

cea claims paying capacity
CEA Claims paying capacity

Current Financial Structure

Participating Insurer Assessments

$2.8B

$0.3B

Revenue Bonds

Reinsurance

$3.1B

CEA Capital

$3.6B

Claims Paying Capacity

1-in-545 year event

Total: $9.8B

slide6

Problem

Only 12% of residents with homeowners insurance have earthquake coverage. coverage.

Uninsured

Insured

slide7

Barriers to purchasing EQ insurance

  • High-priced premium
  • High-percentage deductible
slide8

More than 40% of CEA policyholder premiums spent on reinsurance

1997-2009: Total policyholder premiums $6 billion

Reinsurance Costs

$2.5 billion

Spent on reinsurance

$2.5 billion

Capital $2.4 billion

Reinsurance claims paid:

$250,000

*Expenses $1.1 billion

  • *Major Expense Categories
  • Agent Commissions
  • Debt Financing
  • Participating Insurer Fees
  • CEA Operations
slide9

COGA allows future CEA growth

  • Double take up rate over 5 years
  • Enhance financial strength
  • Probability of need to borrow – less than 1%

Post-Event

Borrowing

$10 Billion

Post-Event

Borrowing

2010

Participating

Insurer

Assessments

Participating

Insurer

Assessments

$2.64 B

Revenue Bonds

Participating

Insurer

Assessments

Revenue Bonds

$.3 B

COGA

FUTURE

Reinsurance

Revenue Bonds

Reinsurance

$3.2 B

Reinsurance

CEA Capital

$3.6 B

CEA Capital

CEA Capital

Total

$9.8 B

slide10

Federal Legislation:

S.886:

  • Catastrophe Obligation Guarantee Act
  • Florida: Bill Nelson
  • California: Dianne Feinstein and Barbara Boxer
  • Louisiana: Mary Landrieu
  • Catastrophe Obligation Guarantee Act of 2009
  • California: Loretta Sanchez, Howard Berman, John Campbell, Lois Capps, Judy Chu, Jim Costa, Susan Davis, Sam Farr, Bob Filner, John Garamendi, Michael Honda, Barbara Lee, Zoe Lofgren, Jerry McNerney, Grace Napolitano, Laura Richardson, Lucille Roybal-Allard, Linda Sanchez, Adam Schiff, Brad Sherman, Jackie Speier, Fortney Stark, Mike Thompson, and Lynn Woolsey
  • Louisiana: Charlie Melancon
  • Homeowners’ Defense Act of 2009
  • Ron Klein (FL) and others
    • - National Catastrophe Risk Consortium
    • - COGA (Title II)
    • - Federal reinsurance
    • - Mitigation

H.R.4014:

H.R.2555:

ad