Articles | Volume 19, issue 8
https://doi.org/10.5194/nhess-19-1909-2019
© Author(s) 2019. This work is distributed under
the Creative Commons Attribution 4.0 License.
the Creative Commons Attribution 4.0 License.
https://doi.org/10.5194/nhess-19-1909-2019
© Author(s) 2019. This work is distributed under
the Creative Commons Attribution 4.0 License.
the Creative Commons Attribution 4.0 License.
California earthquake insurance unpopularity: the issue is the price, not the risk perception
Adrien Pothon
CORRESPONDING AUTHOR
ISTerre, Université de Grenoble-Alpes/Université de Savoie Mont Blanc/CNRS/IRD/IFSTTAR, Grenoble, France
AXA Group Risk Management, Paris, France
Philippe Gueguen
ISTerre, Université de Grenoble-Alpes/Université de Savoie Mont Blanc/CNRS/IRD/IFSTTAR, Grenoble, France
Sylvain Buisine
AXA Group Risk Management, Paris, France
Pierre-Yves Bard
ISTerre, Université de Grenoble-Alpes/Université de Savoie Mont Blanc/CNRS/IRD/IFSTTAR, Grenoble, France
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Cited
14 citations as recorded by crossref.
- Time windows of opportunities to fight earthquake under-insurance: evidence from Google Trends F. Gizzi et al. 10.1057/s41599-020-0532-2
- Tsunami insurance portfolio optimization for coastal residential buildings under non-stationary sea level rise effects based on sample average approximation A. Alhamid et al. 10.1007/s00477-023-02602-1
- Identifying viable financing mechanisms for post-earthquake housing reconstruction in Canada: Case study of a M7 earthquake in British Columbia R. Costa 10.1177/87552930241305016
- A study on factors influencing the acceptance of earthquake catastrophe insurance from the perspective of government-insurance collaboration W. Fang & Q. Yuan 10.1016/j.ijdrr.2024.105164
- Can Investment Views Explain Why People Insure Their Cell Phones But Not Their Homes?—A New Perspective on the Catastrophe Insurance Puzzle A. Hofmann & P. Zweifel 10.3390/jrfm17010030
- Earthquake Insurance in California, USA: What Does Community-Generated Big Data Reveal to Us? F. Gizzi & M. Potenza 10.3390/bdcc6020060
- Effect of earthquake sequences on risk‐based catastrophe bond pricing H. Mistry et al. 10.1111/risa.14288
- Relationships between earthquake insurance take-up rates and seismic risk indicators for Canadian households K. Goda et al. 10.1016/j.ijdrr.2020.101754
- Insights into earthquake insurance demand in high-risk regions: A case study of Turkey H. Meral et al. 10.1016/j.ijdrr.2024.104725
- Innovations in earthquake risk reduction for resilience: Recent advances and challenges F. Freddi et al. 10.1016/j.ijdrr.2021.102267
- A Disaster Under-(Re)Insurance Puzzle: Home Bias in Disaster Risk-Bearing H. Ito & R. McCauley 10.1057/s41308-022-00172-w
- Building a Natural Hazard Insurance System (NHIS): The Long-lasting Italian Case F. Gizzi et al. 10.3390/su132112269
- Parametric Insurance—A Possible and Necessary Solution to Insure the Earthquake Risk of Romania N. Radu & F. Alexandru 10.3390/risks10030059
- Uncovering the factors that affect earthquake insurance uptake using supervised machine learning J. Ng’ombe et al. 10.1038/s41598-023-48568-6
14 citations as recorded by crossref.
- Time windows of opportunities to fight earthquake under-insurance: evidence from Google Trends F. Gizzi et al. 10.1057/s41599-020-0532-2
- Tsunami insurance portfolio optimization for coastal residential buildings under non-stationary sea level rise effects based on sample average approximation A. Alhamid et al. 10.1007/s00477-023-02602-1
- Identifying viable financing mechanisms for post-earthquake housing reconstruction in Canada: Case study of a M7 earthquake in British Columbia R. Costa 10.1177/87552930241305016
- A study on factors influencing the acceptance of earthquake catastrophe insurance from the perspective of government-insurance collaboration W. Fang & Q. Yuan 10.1016/j.ijdrr.2024.105164
- Can Investment Views Explain Why People Insure Their Cell Phones But Not Their Homes?—A New Perspective on the Catastrophe Insurance Puzzle A. Hofmann & P. Zweifel 10.3390/jrfm17010030
- Earthquake Insurance in California, USA: What Does Community-Generated Big Data Reveal to Us? F. Gizzi & M. Potenza 10.3390/bdcc6020060
- Effect of earthquake sequences on risk‐based catastrophe bond pricing H. Mistry et al. 10.1111/risa.14288
- Relationships between earthquake insurance take-up rates and seismic risk indicators for Canadian households K. Goda et al. 10.1016/j.ijdrr.2020.101754
- Insights into earthquake insurance demand in high-risk regions: A case study of Turkey H. Meral et al. 10.1016/j.ijdrr.2024.104725
- Innovations in earthquake risk reduction for resilience: Recent advances and challenges F. Freddi et al. 10.1016/j.ijdrr.2021.102267
- A Disaster Under-(Re)Insurance Puzzle: Home Bias in Disaster Risk-Bearing H. Ito & R. McCauley 10.1057/s41308-022-00172-w
- Building a Natural Hazard Insurance System (NHIS): The Long-lasting Italian Case F. Gizzi et al. 10.3390/su132112269
- Parametric Insurance—A Possible and Necessary Solution to Insure the Earthquake Risk of Romania N. Radu & F. Alexandru 10.3390/risks10030059
- Uncovering the factors that affect earthquake insurance uptake using supervised machine learning J. Ng’ombe et al. 10.1038/s41598-023-48568-6
Latest update: 22 Feb 2025
Short summary
Despite California being a region highly prone to seismic activity, most homeowners are not covered against this risk. This study analyses the reasons for homeowners to purchase insurance to cover earthquake losses, with application in California. Results suggest that only two extreme situations would lead all owners to cover their home with insurance: (1) a widespread belief that a devastating earthquake is imminent; (2) a massive decrease in the average premium amount by a factor exceeding 6.
Despite California being a region highly prone to seismic activity, most homeowners are not...
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