Earthquake Insurance Policies: Shaking Up the Status Quo | Golden Age

Earthquake insurance policies are a crucial aspect of disaster risk management, particularly in seismically active regions. The history of earthquake insurance dates back to the 1906 San Francisco earthquake, which led to the establishment of the first earthquake insurance company in 1907. According to the United States Geological Survey (USGS), the average annual loss from earthquakes in the US is around $4.4 billion. Despite this, many homeowners and businesses remain underinsured or uninsured against seismic risks. The controversy surrounding earthquake insurance policies often centers around issues of affordability, coverage limits, and policy exclusions. As the world becomes increasingly urbanized, the need for effective earthquake insurance policies will only continue to grow, with some experts predicting that the global earthquake insurance market will reach $20 billion by 2025.