DailyTimeCapsule brief
October 18, 1986
On October 18, 1986, the insurance industry was facing increased scrutiny and caution as a result of heightened awareness around earthquake risks, particularly in California. Insurers were reevaluating their policies and coverage options, leading to a significant shift in how they approached earthquake insurance. This change emerged in the wake of the devastating 1985 Mexico City earthquake, which had underscored the potential financial fallout from such natural disasters. At the same time, the global political landscape was marked by ongoing tensions in the Cold War, with the United States continuing its policies aimed at containing Soviet influence. Domestically, Americans were witnessing the effects of policies from the Reagan administration, which emphasized deregulation and a strong military posture as means to bolster national security and economic growth.
Key developments
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In response to increasing seismic risks, insurance providers in Los Angeles are tightening their policies, resulting in higher costs and limited availability for homeowners and businesses. This shift comes as experts warn that a significant earthquake, referred to as 'the big one', is likely to occur in the near future. The struggle for adequate earthquake coverage reflects broader concerns about preparedness for natural disasters in high-risk areas.
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