California Earthquake Authority

What California Earthquake Authority does

California Earthquake Authority (CEA) is a not-for-profit, publicly managed, privately funded residential earthquake insurer established by the California Legislature in 1996 in direct response to the market collapse caused by the 1994 Northridge earthquake. The organization issues earthquake insurance policies exclusively through a network of more than 20 participating residential insurance carriers, reaching California homeowners, condo-unit owners, mobilehome/manufactured-home owners, and renters; over one million policyholders are currently protected by approximately $19 billion in claim-paying ability, and CEA accounts for nearly two-thirds of residential earthquake policies sold in California.

The core product set comprises four policy lines (Standard and Choice Homeowner, Condominium, Mobilehome, and Renters coverage) underwritten through proprietary actuarial risk models and supported by an agent-facing technology stack: a web-based Premium Calculator, an Agent Portal (Azure AD B2C authenticated) with up-to-2-CE-credit training, and digital marketing toolkits for distributing insurers. Adjacent programs include the Earthquake Brace + Bolt (up to $3,000 grants) and Earthquake Soft-Story (up to $13,000 grants) seismic retrofit initiatives, administered through the joint powers authority California Residential Mitigation Program (CRMP) created with Cal OES in 2011 and supported by FEMA Hazard Mitigation Assistance. Since 2019, CEA has additionally served as Administrator of the California Wildfire Fund, providing up to $21 billion in claim-paying capacity for utility-caused wildfire claims.

CEA is funded by an annual premium base of approximately $900 million, bounded by California statute to a maximum 6% operating-expense ratio over premium income, and holds an AM Best Financial Strength Rating of B++ (Good) with a stable outlook. Distribution is sold exclusively through participating insurers with policies to homeowners, condo owners, mobilehome owners, and renters; pricing is annual-subscription with deductible options ranging from 5% to 25% and premium discounts of up to 25% (homeowners) and 21% (mobilehomes) tied to seismic retrofitting. Governance sits with a five-member Governing Board anchored by California's Governor, Treasurer, and Insurance Commissioner, while day-to-day leadership transitioned in 2024 from 16-year CEO Glenn Pomeroy to Tom Welsh, with Bret Ladine joining as General Counsel in 2026.

Name

California Earthquake Authority

Legal name

California Earthquake Authority

Website

https://earthquakeauthority.com

Company type

Private

Founded year

1996

Operating status

Operating

Headcount range

101–250 employees

Short description

The California Earthquake Authority (CEA) is a not-for-profit, publicly managed, privately funded California residential earthquake insurer, selling policies exclusively through more than 20 participating carriers to protect over one million homeowners, condo owners, mobilehome owners, and renters with roughly $19 billion in claim-paying resources.

Ownership category

akta.pro rank

Product category

Residential Earthquake Insurance

SIC

Fire, Marine & Casualty Insurance (6331)

akta.pro primary industry

Homeowners Insurance (FSAJACAA)

akta.pro secondary industry

Renters Insurance (FSAJACAB)

Keywords

• Residential earthquake insurance
• Catastrophe risk pooling
• Seismic retrofit grants
• Earthquake mitigation programs
• Disaster preparedness education

Headquarters

HQ city

Sacramento

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Earthquake Insurance Premiums: CEA collects annual premium revenue from residential earthquake insurance policies sold through participating insurers. Premium revenue is approximately $900 million annually. By law, only 6 percent of premium income can be spent on operating expenses.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels6 records

Core offering

California Earthquake Authority sells residential earthquake insurance policies to California homeowners, condo unit owners, mobilehome owners, and renters, providing coverage for dwelling damage, personal property, and loss of use caused by earthquakes. Policies are sold exclusively through more than 20 participating residential insurance companies and supported by seismic retrofit grant programs (Earthquake Brace + Bolt and Earthquake Soft-Story) administered through the California Residential Mitigation Program.

Product overview

California Earthquake Authority (CEA) is a not-for-profit, publicly managed, privately funded organization offering residential earthquake insurance and earthquake preparedness services. The core product portfolio consists of four earthquake insurance policy types (Homeowners, Condominium, Mobilehome, and Renters) sold exclusively through over 20 participating residential insurance companies. Supporting the insurance offerings are seismic retrofit grant programs including Earthquake Brace + Bolt (up to $3,000 grants) and Earthquake Soft-Story (up to $13,000 grants), administered through the California Residential Mitigation Program (CRMP). CEA also administers the California Wildfire Fund ($21 billion claim-paying capacity). Agent-facing tools include a Premium Calculator and Agent Portal with training resources. CEA serves over one million policyholders with approximately $19 billion in claim-paying ability and $900 million in annual premium revenue.

Differentiator

Problem solved

Functional benefit

Brands

• Earthquake Brace + Bolt (EBB): Grant program administered by CRMP offering up to $3,000 to help California homeowners retrofit their houses to reduce potential earthquake damage. Includes supplemental grants of up to $7,000 for income-eligible households.
• Earthquake Soft-Story (ESS)

Products and services

• CEA Residential Earthquake Insurance - Homeowners Earthquake insurance policies for California homeowners providing dwelling damage, other structures, personal property (Coverage C up to $25,000), and loss-of-use coverage caused by earthquakes. Sold exclusively through participating residential insurers and includes Hazard Reduction Discounts of up to 25% for seismically retrofitted older wood-framed houses.
• CEA Residential Earthquake Insurance - Condominium Earthquake insurance policies for California condominium unit owners covering unit-level structural damage and personal property from earthquake events. Sold exclusively through participating residential insurers.
• CEA Residential Earthquake Insurance - Mobilehome & Manufactured Homeowners Earthquake insurance policies specifically designed for California mobilehome and manufactured homeowners, with 21% premium discounts available for homes reinforced with earthquake-resistant bracing systems or installed on approved foundation systems. Sold exclusively through participating residential insurers.
• CEA Residential Earthquake Insurance - Renters Earthquake insurance policies for California renters covering personal property (Coverage C up to $25,000) and additional living expenses when earthquake damage displaces them from their rental property. Sold exclusively through participating residential insurers.
• Earthquake Brace + Bolt (EBB) Program Seismic retrofit grant program offering up to $3,000 (with up to $7,000 supplemental for income-eligible households) to California homeowners to retrofit pre-1980 wood-framed houses with raised foundations, bolting them to foundations and bracing crawl space walls. Administered by the California Residential Mitigation Program (CRMP) and delivered through trained, California-licensed general contractors.
• Earthquake Soft-Story (ESS) Program Grant program providing up to $13,000 in financial assistance to California homeowners to complete code-compliant seismic retrofits of single-family soft-story structures built before 2000 with living space over a garage. Administered through CRMP with FEMA Hazard Mitigation Assistance Grants.

Quantifiable outcome

• Over 1 million policyholders protected with $19 billion in claim-paying resources
• +2 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration6 records

Feature1 record

Partnerships

Six partnerships are on record, tiered core and minor.

• California Residential Mitigation Program (CRMP)coreStrategic or Co-development Partner · 20 August 2025CRMP is a joint powers authority created by CEA and the California Governor's Office of Emergency Services (Cal OES) in 2011. CRMP administers the Earthquake Brace + Bolt (EBB) grant program that has helped over 32,500 California homeowners strengthen their homes against earthquake damage.
• Earthquake Brace + Bolt (EBB) ContractorsminorChannel Partner/ Reseller/ Distributor · 10 January 2024Trained, California-licensed general contractors (Type A or B) participate in the EBB program to perform seismic retrofits. CRMP offers free FEMA training and marketing materials for contractors.
• California Wildfire FundcoreOthers · 1 January 2019Since 2019, CEA has acted as Administrator of the California Wildfire Fund, a catastrophe insurance fund that provides up to $21 billion in claim-paying capacity for claims arising from wildfires caused by PG&E, SDG&E, and SoCal Edison.
• California Governor's Office of Emergency Services (Cal OES)coreStrategic or Co-development Partner · 1 January 2011Cal OES partnered with CEA to create the California Residential Mitigation Program (CRMP), which administers earthquake mitigation programs including Earthquake Brace + Bolt and Earthquake Soft-Story grants.
• Federal Emergency Management Agency (FEMA)minorOthers · 1 January 2011FEMA provides Hazard Mitigation Assistance Grants that are administered by CRMP for the Earthquake Soft-Story program. FEMA-trained, California licensed general contractors participate in the program.
• Participating Residential InsurerscoreChannel Partner/ Reseller/ Distributor · 1 January 1996CEA offers earthquake insurance policies exclusively through over 20 participating residential insurance companies. These insurers sell and service CEA policies to homeowners, mobilehome owners, condo unit owners, and renters.

Scale indicators6 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• GeoVera Insurance Group: Specialty residential earthquake insurer holding a California Certificate of Authority and offering similar earthquake-only coverage. Most direct competitor to CEA within the niche of California residential earthquake insurance.
• Palomar Specialty Insurance Company: Specialty property and catastrophe insurer including earthquake coverage, with operations in California. Comparable in its focus on niche residential and commercial catastrophe insurance products.
• Pacific Specialty Insurance Company: California-domiciled property insurer offering earthquake and other specialty lines. Overlaps directly with CEA's homeowner, mobilehome, and earthquake coverage offerings in California.

Broad incumbents

• Mercury Insurance: Major California-headquartered residential auto and home insurer that also sells earthquake coverage in partnership arrangements. Broad incumbent serving many of the same homeowners that CEA targets, but with a multi-line book.
• California Casualty: California-focused residential property and auto insurer serving similar homeowner and condo segments. A broad incumbent offering earthquake endorsements alongside its core auto/home book.
• ICW Group: Workers' comp-focused insurer with a residential property unit serving California. Provides residential earthquake exposure as part of a broader commercial-leaning portfolio, comparable in California market presence.
• Pure Insurance: High-value home insurer offering earthquake coverage in California as part of its premium residential book. Broad incumbent with a more affluent customer profile that competes for the same homeowner segment.
• Chubb: Global property-casualty insurer offering high-end residential earthquake coverage in California. While a broad incumbent, its Masterpiece and related homeowners products are priced comparably to CEA for the upper-tier customer.
• State Farm: Largest U.S. residential insurer, historically a participating CEA distribution partner. Its homeowners customers in California represent a major potential channel for CEA policies and a meaningful source of competitive overlap.
• Allstate: Top-five U.S. residential property insurer with California earthquake offerings. Serves many of the same homeowners and renters that CEA covers, and historically has been a participating CEA distribution partner.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/user/EarthquakeAuthority
• Facebookfacebook.com/californiaearthquakeauthority
• LinkedInlinkedin.com/company/california-earthquake-authority
• Instagraminstagram.com/californiaearthquakeauthority
• Xx.com/calquake

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about California Earthquake Authority