The earthquake risk exposure for California’s workers comp market is huge, as nearly every worker in the state is covered. By contrast only about 10 percent of Californians have residential earthquake insurance.
The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has recently partnered with Risk Management Solutions, Inc. (RMS), on a report quantifying the earthquake risk faced by California workers’ compensation insurers.
The timing of an earthquake event emerged as one of the critical factors when assessing the risk to employees. Recent earthquakes such as the Loma Prieta and the Northridge happened during off-peak hours; had the timing been different, the human impact could have been much worse. As expected the highest concentration of employees coincides with the highest hazard regions.