Motivating Consumers to Prepare for Earthquakes

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Motivating Consumers to Prepare for Earthquakes

• Glenn Pomeroy
• California Earthquake Authority
• March 15, 2009

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1994-95 Residential Insurance Crisis

• Mandatory offer in California since mid-80s
• 1994 Northridge Earthquake
• Spike in take-up
• By mid-1995, 95 of market severely restricted
  writing residential property coverage
• 1996 CEA established

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CEA Today

• Largest provider of residential earthquake
  insurance in the United States
• More than 770,000 policies in force
• Writes 70 of all California residential
  earthquake insurance policies

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Reality Take-up Rate Only 12
36
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CEA
12
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All Earthquake Insurers
CEA
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Motivating Consumers to Prepare for Earthquakes
Insurance Policy
Affordable Price Valuable Product Reliable
Financial Strength
Consumer Motivation
Awareness of Need Understanding of necessary
steps to prepare
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Dennis Mileti, Ph.D. California Seismic Safety
Commission Professor EmeritusInstitute of
Behavioral ScienceUniversity of Colorado at
Boulder
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Mileti Recommendations

• All public education and information campaigns
  are not equal
• Dont rely on motivating public with
  increased probabilities
• Provide public information from as many
  different sources as possible
• Tell people what to do
• Tell them how these actions can cut their
  losses
• Brand the message
• Communicate over the long haul
• Position cues for people to see
• Target talking

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Sell It Like Coca Cola
Professor Mileti