The California Earthquake Authority (CEA) increased its overall risk transfer and reinsurance protection through the middle of the year, lifting the program to almost $8.86 billion in size, with its catastrophe bonds making up a steady 24% of the total.
Through the four months to end of August 2023, the California Earthquake Authority (CEA) added to both its traditional reinsurance and catastrophe bond protections, signalling a continuing need to maintain a certain level of coverage, despite previously cited concerns over the cost of risk transfer today.
The California Earthquake Authority (CEA) faces increasing exposure growth at a time when it faces stresses related to risk transfer affordability, in the current hard and higher priced reinsurance market environment.
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