Pacific Select Debuts Earthquake Insurance Program for California Homeowners, Commercial Property Owners.
Once it completes the licensing process, the company will enter the California earthquake insurance market as an admitted carrier, offering innovative earthquake insurance products for the state's residential and commercial markets.
"In a marketplace where most insurers offer only bare-bones policies, Pacific Select will stand out by providing a full line of products designed to meet consumers' specific needs for earthquake coverage," stated company president, Rich Campagna.
The company's product line includes several unique and innovative policies for California homeowners. The "Premier EQ Protector" is a comprehensive policy with a 10-percent deductible and protects the dwelling, appurtenant structures (garage, carport, etc.), as well as personal property and loss of use.
A new "EQuity Protector" policy affords the ability for homeowners to protect the equity in their home without incurring the high premiums for full-replacement coverage. The "Security EQ Protector" policy is designed to protect the primary homeowner investment -- the dwelling, with limited coverages for personal property and loss of use, but at a lower price.
A selection of inventive supplements to current California earthquake mini-policies will also be offered. These are designed for homeowners wishing to avoid the high out-of-pocket expenses associated with the 15% deductible of mini-policies, as well as obtaining additional limits for personal property and loss of use. In addition, the company will offer primary and excess coverage for the commercial market.
Pacific Select has formed a marketing alliance with IBA West Service Corporation and will jointly market the residential earthquake program through independent agents and brokers in California. IBA West Service Corporation is a subsidiary of IBA West, the largest independent insurance agent and broker association in the western United States with over two thousand members.
Campagna said the company's straightforward application process and quick turnaround for underwriting and policy issuance will make it easy for producers to pre-qualify risks and submit business, especially as compared to other carriers. Brokers can also submit business over the internet and brokers and consumers can get additional information from the company's website at www.pacificselect.com .
By using the most current catastrophe modeling tools and technology-based underwriting tools, Pacific Select's goal is to provide earthquake coverage that meets consumer needs while controlling the company's earthquake exposure. Both Risk Management Solutions, Inc.'s, IRAS (Insurance and Investment Risk Assessment System) and EQECAT's USQUAKE modeling programs are employed by Pacific Select to provide up-to-date seismic hazard, vulnerability and risk analysis, as well as class and collateral damage analysis.
According to Campagna, these analyses provide Pacific Select the information to manage the geographic diversification necessary for a successful program and to ensure adequate capitalization in the event of a major earthquake.
"We believe that adequate capitalization and prudent use of reinsurance are essential to providing sound capacity for the California earthquake insurance market," Campagna stated. "Thus, our financial position is supported by an extensive reinsurance program using reinsurers rated "A" or better by A.M. Best.
"Our financial structure is designed to ensure that we remain in the market, providing service to our customers after a significant earthquake occurs."
Centre Re, a unit of the Worldwide Zurich Group, holds a 40-percent interest in the company, with three other institutional investors each holding 20-percent shares.
Campagna said Pacific Select's management team reflects substantial expertise in the earthquake insurance market, with specific knowledge about product development, underwriting, and distribution.
Pacific Select is headquartered in Walnut Creek, California and will also maintain offices in San Francisco. The company may be reached at 1-800/774-1012.
CONTACT: Pacific Select Insurance Co.
Rich Campagna, 510/977-6301
The Corsi Agency
Julie Lehman, 415/772-5959
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 13, 1997|
|Previous Article:||Hyatt Announces Additional Financing.|
|Next Article:||Peruvian Gold: New Porphyry Copper Target Discovered.|
|St. Paul to Make 2 Purchases: MMI Cos. and Pacific Select.|
|All Over the Map.|
|Movin' on up: some of the nation's largest homeowners insurers are gaining on or passing their competitors in market rank.|