> ## Content Index > Fetch the complete content index at: https://www.riskmarketnews.com/llms.txt > Use this file to discover other available public pages before exploring further. # California Quake Costs Add Up - URL: https://www.riskmarketnews.com/california-quake-costs-add-up/ - Published: 2019-12-11T19:29:41.000Z - Updated: 2020-08-19T10:24:03.000Z - Description: AIR's contract renewed and the Navy faces $2 billion Ridgecrest tab - Author: Chris Westfall - Tags: #substack, RMN Member Newsletter #### Ridgecrest Leads to Earthquake Coverage The biggest driver of earthquake insurance take up in California is a combination of a post event policy rush and lowering premiums, according to officials at the California Earthquake Authority (CEA). CEA officials said that policy growth of approximately 49,000, or about a 4.6% between June and October of this year, was driven partially by the July 2019 Ridgecrest earthquake swarm. CEA Chief Financial Officer and Chief Insurance Operations Officer Tom Hanzel said at a board meeting today: > Los Angeles County did feel a little bit of the shaking from Ridgecrest, but it wasn't until you get to Kern County where you see biggest bump \[in take up\] from an event. They also saw an overall rate reduction in that county, so those two coinciding forces resulted in 17% increase in take up. ![](https://storage.ghost.io/c/5f/d8/5fd861a0-e273-43de-ac77-c473390d89d5/content/images/public/images/84a5f625-208a-4ec6-813c-72495de65e4b_851x641.png) The agency added it saw the second largest increase in its annual policy count in its history in 2019, for a total of 1,105,000 as of October 31. During the meeting the board also voted to continue its reinsurance and risk transfer strategy that would maintain its a 1-in-400-year capacity. In 2019, the CEA had: - Conducted 23 risk transfer transactions. - Produced a total risk-transfer limit purchased $5,134,467,440. - Purchased multi-year contacts totaling $1,875,099,960 or 37% of total risk-transfer limit purchased in 2019. - Renewed a transformer reinsurance contract for $400,000,000. ![](https://storage.ghost.io/c/5f/d8/5fd861a0-e273-43de-ac77-c473390d89d5/content/images/public/images/2a4f28f0-d833-4656-8dbc-78cfbeae5122_847x623.png) Finally, the CEA renewed the contract of AIR Worldwide for catastrophe modeling services, increasing the spend 6% to $335,000 per year. --- #### Defense Bill Set to Repair Navy Quake Damage The proposed National Defense Authorization Act filed yesterday includes $100 million for military construction projects, including money to repair facilities damaged by the Ridgecrest earthquake. > in light of the earthquakes in July, 6 2019, the Secretary of Defense should reprogram or marshal, to the fullest extent the law allows, all available resources that are necessary and appropriate A [report issued in August](https://news.usni.org/2019/08/21/navy-facing-billion-dollar-tab-years-to-get-china-lake-fully-operational-after-quake?ref=riskmarketnews.com) by the U.S Navy estimated that $2 billion in repairs are needed to the China Lake Naval Weapons Station that encompasses 1.1 million acres north and southeast of the desert town of Ridgecrest. --- #### Risk Reads [Why Global Warming Is This Cable Company's Biggest Risk Factor (Motley Fool)](https://www.fool.com/investing/2019/12/10/why-global-warming-is-cable-company-biggest-risk.aspx?ref=riskmarketnews.com) *Increasingly frequent and powerful hurricanes and tropical storms have caused damage that has set back earnings growth and required companies to invest more in durable infrastructure.* [This Columbia professor's research paper on severe cyclones is inspired by writer Amitav Ghosh (Indian Express)](https://www.edexlive.com/people/2019/dec/11/this-professors-research-work-from-columbia-university-is-inspired-by-writer-amitav-ghosh-9501.html?ref=riskmarketnews.com) *Prof Sobel said that it was in the summer of 2015 that Ghosh wrote an email about possibilities of a cyclone in the indian ocean region, and the possibility of its landfall in the city of Mumbai*