The California Earthquake Authority (CEA) increased the size of its reinsurance and catastrophe bond risk transfer program by around 4.4% as of the end of July 2021, to reach almost $9.6 billion, but in the short-term future growth of the program seems less certain due to rising exposure and the cost of coverage.

That’s practically the same as the record size for the program, of also almost $9.6 billion of risk transfer that the CEA had in-force as of October 2020.

A relatively significant amount of catastrophe bond maturities shrank the CEA’s risk transfer and reinsurance program, back to $9.15 billion by December 2020, a figure it remained at through the end of last year.

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