ABSTRACT
This chapter examines the industry, federal, state and homeowner perspectives on the provision of insurance. An understanding of the concerns of the insurance industry requires a grasp of how insurers do business and how they make decisions to insure a particular property. The American Insurance Association, the Alliance of American Insurers, the American International Group, State Farm Insurance and the National Association of Independent Insurers have formed a coalition to participate in the Earthquake Project. The federal government has an interest in earthquake insurance since it is the insurer of last resort in the event of a major disaster. State and federal legislators and government officials share the notion that a great deal more must be done to make earthquake insurance more stable and also more effective for the kinds of losses that homeowners are likely to suffer.
