OLDWICK, N.J.--(BUSINESS WIRE)--In this episode of AMBestTV, Glenn Pomeroy, chief executive officer, California Earthquake Authority (CEA), a nonprofit, said CEA is now managing a $21 billion Wildfire Fund backstop for utilities. Click on http://www.ambest.com/v.asp?v=pomeroy620 to view the entire program.
Pomeroy highlighted the differences between the Earthquake Fund and the Wildfire Fund, which was launched in June 2018.
“The similarities are that you are dealing with two catastrophic risks from natural catastrophes, but that is really where the similarities end,” said Pomeroy. “The Wildfire Fund really only has three policyholders, or potentially three policyholders. Those are the investor-owned utility companies in California, and one of those is not completely officially in yet, and that is PG&E. PG&E will only get in if they get out of bankruptcy.”
“It is a pretty comprehensive mechanism to provide incentives to utility companies to hold themselves to new and higher standards that will be strictly overseen by new bodies that have been established. It is also intended to provide a swifter means for victims to make sure they can get compensated after a loss.”
Pomeroy concluded with a look at the 25-year history of the CEA.
“CEA is at an all-time high in terms of policyholders, with over 1.1 million policies and it continues to grow. Additionally, we were not quite sure how COVID-19 would impact that growth and we are watching it carefully, but our policy count continues to grow. As people look at what is happening to their 401(k), they realize the equity they have in their home is more important than ever.”
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