Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Insurance topic
No spam. Unsubscribe anytime.
Board hears proposal to join parametric earthquake insurance pool; district share estimated near $1,000
Summary
The board discussed adding parametric earthquake insurance coverage through a pooled program; the addition would trigger an estimated roughly $1,000 increase in the district's insurance cost and would pay on predefined seismic triggers without a claims process, providing early cash flow after an event.
A board member raised a proposal to join a parametric earthquake insurance program that would layer on top of the district's existing earthquake insurance. The member said the program is expected to add "another roughly thousand dollars" to the district's insurance cost and described the product as paying on documented triggers (shake metrics) without a conventional claims process, which can provide upfront cash flow following a qualifying seismic event.
Staff explained the parametric product is designed to pay based on predetermined thresholds (for example, shake intensity within a zone) and would sit alongside the district's existing coverage as a backstop for immediate cash needs after a qualifying event. Staff noted the program is in early stages for some perils (wildfire parametric products, for example, are less mature) and the board will need to consider pool participation and cost-sharing with other members before any formal action.
