Wednesday, December 24th, 2003 — The earthquake that struck central California yesterday was the largest to strike the Golden State in more than four years, but it is unlikely to cause significant insured losses, industry observers said.
The quake, and its aftershocks, struck mostly unpopulated areas, accounting for the expected low rate of losses. The aftermath, one insurance analyst suggested, could be “a net positive” for property reinsurers, instilling more discipline in the market as the industry enters into the renewal season.
“It was 6.5 on the Richter scale, and its epicenter was in an area called Cambria, which is almost 200 miles away from Los Angeles,” said Peter Moraga, Los Angeles-based spokesman for Insurance Information Network of California.