CEA’s innovative financial transactions earn honors for excellence.
The approach used for financing earthquake insurance in the state has drawn international attention and an industry panel of experts have now given important recognition.
The California Earthquake Authority has received the Sponsor of the Year award.
This award is given to ongoing coverage linked securities issuance and the integration of new technology for risks in trading, or to a new entrant to the marketplace that has managed to effectively research its sector and sponsor a deal that is considered to be truly innovative.
Glenn Pomeroy, the chief executive officer for the CEA said that “It’s a high honor for the CEA to receive this prestigious award.” He added that “Under the leadership of Chief Financial Officer Tim Richison and his team, we will continue to look for innovative ways to diversify and expand our claim-paying resources. A diverse set of risk-transfer tools will help us make earthquake insurance more affordable and more widely used.”
This honor to the CEA was an acknowledgement of its achievement and professionalism.
Even more notable is that this was accomplished within the earthquake insurance marketplace, which is an exceptionally fast developing one. It was a nod to a first of its kind transaction which was completed by the CEA in 2011. This was a reward for the dedication and hard work that were required to reach such a feat within this particular sector of the insurance, reinsurance, and capital market environment.
The chief financial officer of the CEA, Tim Richison, thanked Trading Risk for awarding the Authority with the honor and explained that the organization had formed this unique transaction in an effort to come up with an innovative way to access the capital markets. At the same time, though, he pointed out that they wanted their terms to remain flexible, such as those that are often used by the traditional reinsurance marketplaces.
Richison stated that he believes that the successful earthquake insurance transaction has laid out a path for much more sizeable and diverse sponsor and risk pools to take their first steps into convergence marketplaces.