Californians are taking out earthquake insurance on their homes as experts warn that the state is overdue a large seismic shock. The California Earthquake Authority ( CEA ) said 52,000 policies were bought in 2016 , compared to the 2016 average of 950,000 , lifting the number of active policies to 18,804 . Another 18,804 have been taken out 2016 alone, despite the fact that mortgage lenders don't require buyers to have coverage. That suggests the cat bond market would keenly soak up further issues from the CEA and we are likely to see the insurer back in the cat bond market in the next few months, as long as pricing remains attractive. The The California Earthquake Authority 's claims capacity has reached $ 15bn , helped by the use of catastrophe bonds to transfer risk to the capital markets.
Californians are taking out earthquake insurance on their homes as experts warn that the state is overdue a large seismic shock. The California Earthquake Authority ( CEA ) said 52,000 policies were bought in 2016 , compared to the 2016 average of 950,000 , lifting the number of active policies to 18,804 . Another 18,804 have been taken out 2016 alone, despite the fact that mortgage lenders don't require buyers to have coverage. The The California Earthquake Authority 's claims capacity has reached $ 15bn , helped by the use of catastrophe bonds to transfer risk to the capital markets.