newport beach association of realtors · 2017-11-22 · 1996 original policy 2016 new cea options...
TRANSCRIPT
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Newport Beach Association of Realtors
Glenn PomeroyCEO, California Earthquake Authority
October 27, 2016
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6 Confidential & Proprietary
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The risk is REAL.
7
about earthquake insurance
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8 Confidential & Proprietary
chance of a 6.7M or larger
earthquake sometime in the next
30 years
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9 Confidential & Proprietary
Most Californians live within
of an active fault
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10 Confidential & Proprietary
of Californians don’t have
earthquake insurance
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11 Confidential & Proprietary
The 1994 Northridge
earthquake reoccurred …
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Residential damage:
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Insured: $7 Billion
Uninsured: $68 Billion
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Find this story atwww.latimes.com
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14
Find this story atlosangeles.cbslocal.com
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The risk is REAL.
So is the benefit of EARTHQUAKE INSURANCE.
15
about earthquake insurance
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“The will bail me out.”
Government assistance, if available, is to urgent health and safety needs.
Government loans must be .
16
earthquake insurance
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Many think their covers earthquakes.
Earthquakes are under a residential policy – a separate earthquake policy is required.
17
earthquake insurance
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Earthquake insurance , provides and the
.
CEA has dramatically , and now offers a wide range of ,
, and new for retrofitting older homes.
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earthquake insurance
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The risk is REAL.
So is the benefit of EARTHQUAKE INSURANCE.
CEA is a NOT-FOR-PROFIT residential earthquake insurer.
19
about earthquake insurance
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#CEA20
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Property Damage: $40 BillionResidential: $20 Billion
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Most insurance companies stopped writing Homeowners insurance
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GOVERNING BOARD: GovernorInsurance CommissionerState TreasurerAssembly Speaker and Senate Rules ChairNon Voting:
PRIVATELY FINANCED: 908,000 Policyholders
MISSION: EducateMitigateInsure
A not-for-profit provider of residential earthquake insurance
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The risk is REAL.
So is the benefit of EARTHQUAKE INSURANCE.
CEA is a NOT-FOR-PROFIT residential earthquake insurer.
CEA has dramatically LOWERED RATES, and now offers a wide range of COVERAGE CHOICES, DEDUCTIBLE OPTIONS and new DISCOUNTS for retrofitting older homes.
25
about earthquake insurance
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1996 2016
Overall inflation is up 51%
+51%Overall inflation
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1996 2016
+168%Reconstruction
Costs
The cost to rebuild a home in California has sky rocketed.
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CEA has lowered its ratesby a combined 55%
1996 2016
11%
‘97
22%
‘06 12%
‘12
10%
‘16
Without these rate reductions, the average CEA premium today would be more than twice as high
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1996Original Policy
2016New CEAOptions
Structure
Personal Property Coverage
Deductible
Loss of Use Coverageadditional living expenses
Mitigation Discount
Replacement cost
$5,000
15%
$1,500
0%
Replacement cost
Up to $200,000
5%, 10%, 15%, 20%, 25%
Up to $100,000
Up to 20%
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Homeowner Policies: $1,500 emergency repairs with no deductible
Policyholders are not required to pay the deductibleto receive their claim paymentLoss of Use never has a deductible
Product Enhancements
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The risk is REAL.
So is the benefit of EARTHQUAKE INSURANCE.
CEA is a NOT-FOR-PROFIT residential earthquake insurer.
CEA has dramatically LOWERED RATES, and now offers a wide range of COVERAGE CHOICES, DEDUCTIBLE OPTIONS and new DISCOUNTS for retrofitting older homes.
Now Californians can choose the earthquake policies that meet their NEEDS and BUDGET.
30
about earthquake insurance
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EarthquakeAuthority.com
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EarthquakeAuthority.com
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EarthquakeAuthority.com
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Premium
Deductible: 15%
EarthquakeAuthority.com
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Deductible: 5%
Premium
EarthquakeAuthority.com
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Building Code Upgrade
Masonry veneer
Personal property
Separate deductible
Breakables
Loss of use
Deductible: 25%
Premium
EarthquakeAuthority.com
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The risk is REAL.
So is the benefit of EARTHQUAKE INSURANCE.
CEA is a NOT-FOR-PROFIT residential earthquake insurer.
CEA has dramatically LOWERED RATES, and now offers a wide range of COVERAGE CHOICES, DEDUCTIBLE OPTIONS and new DISCOUNTS for retrofitting older homes.
Now Californians can choose the earthquake policies that meet their NEEDS and BUDGET.
37
about earthquake insurance
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38 Confidential & Proprietary
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2016
2nd IAL
Revenue Bonds
Risk Transfer
Capital
Claim-paying capacity: $12 Billion
$1.7B
$700M
$4.4B
$5.2B
$240MNew IAL
CEA's financial strength is rated as A– (Excellent) by A.M. Best Co., the world's most authoritative rating agency of insurance companies.
Financial Strength