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Why did insurance companies pull out of California right before the wild fires?

aociswundumho said:
You guessed it: progressive regulation

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Why did insurance companies pull out of California right before the wild fires?​

Simply because Insurance companies are not stupid. They are in the business to make a profit insuring risk. The lower the risk the more chance for profit. The higher the risk the more chance for loss.

Those companies were well-aware of both California's crazy water use (read waste) policies, as well as the high risk of annual fires in spring and summer. Especially when the State and local governments were not properly clearing dried brush and fallen timber in order to help prevent such fires. Add to that the improper maintenance of reservoirs, and it was a disaster waiting to happen.
 
ttwtt78640 said:
Climate change. ;)
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That is actually closer to the truth than other posts on this thread. They are also leaving Florida for the same reason. The risk component continues to rise largely due to climate change and cost escalations.

www2.deloitte.com

Insurance Companies Prepare for Risk from Climate Change

Climate change presents significant risk for the insurance industry. Five key actions could help insurers mitigate exposure and boost resilience.
www2.deloitte.com www2.deloitte.com
www.ft.com

The uninsurable world: how the insurance industry fell behind on climate change

Surge in floods and fires has caught out the insurance industry and added an ‘uncertainty factor’ to premiums
www.ft.com www.ft.com
www.skadden.com

Climate Change and Its Undeniable Impact on Insurance: How To Respond? | Insights | Skadden, Arps, Slate, Meagher & Flom LLP

Climate change will interfere with insurers’ risk predictions and pricing policies. They may need to work with clients on new types of coverage, apply novel technology and collaborate with governments and other entities.
www.skadden.com www.skadden.com
www.insurance.com

The Florida insurance crisis: Why are insurance companies leaving Florida?

The Florida insurance crisis is worsening as home insurance companies leave the state, while those that stay raise rates. Find out what's causing the Florida insurance crisis and what you can do.
www.insurance.com www.insurance.com
 
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The answer is that global warming is causing more wildfires (as well as other disasters,) and insurance companies don't like paying out when they can stack the deck. Also, unlike easily duped people who watch faux, the people on the insurance casino house side aren't as stupid about their gambles.
 
This is going to happen more and more, insurance companies are going to avoid problematic states and areas of the nation prone to disaster after disaster. Does not matter if we are talking about hurricanes and floods or fires. Expect this to become worse.
 
OrphanSlug said:
This is going to happen more and more, insurance companies are going to avoid problematic states and areas of the nation prone to disaster after disaster. Does not matter if we are talking about hurricanes and floods or fires. Expect this to become worse.
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But.. But... But.. Biden.. Hunter.. Dem politics... Etc..
 
Captain Adverse said:

Why did insurance companies pull out of California right before the wild fires?​

Simply because Insurance companies are not stupid. They are in the business to make a profit insuring risk. The lower the risk the more chance for profit. The higher the risk the more chance for loss.

Those companies were well-aware of both California's crazy water use (read waste) policies, as well as the high risk of annual fires in spring and summer. Especially when the State and local governments were not properly clearing dried brush and fallen timber in order to help prevent such fires. Add to that the improper maintenance of reservoirs, and it was a disaster waiting to happen.
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Has the trump administration fixed those problems?
 
upsideguy said:
That is actually closer to the truth than other posts on this thread. They are also leaving Florida for the same reason. The risk component continues to rise largely due to climate change and cost escalations.

www2.deloitte.com

Insurance Companies Prepare for Risk from Climate Change

Climate change presents significant risk for the insurance industry. Five key actions could help insurers mitigate exposure and boost resilience.
www2.deloitte.com www2.deloitte.com
www.ft.com

The uninsurable world: how the insurance industry fell behind on climate change

Surge in floods and fires has caught out the insurance industry and added an ‘uncertainty factor’ to premiums
www.ft.com www.ft.com
www.skadden.com

Climate Change and Its Undeniable Impact on Insurance: How To Respond? | Insights | Skadden, Arps, Slate, Meagher & Flom LLP

Climate change will interfere with insurers’ risk predictions and pricing policies. They may need to work with clients on new types of coverage, apply novel technology and collaborate with governments and other entities.
www.skadden.com www.skadden.com
www.insurance.com

The Florida insurance crisis: Why are insurance companies leaving Florida?

The Florida insurance crisis is worsening as home insurance companies leave the state, while those that stay raise rates. Find out what's causing the Florida insurance crisis and what you can do.
www.insurance.com www.insurance.com
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Or in other words, you ain't in good hands. Because the insurance business is all about collecting premiums, not paying them out. Remember now, according to some republican or other on here business first has to please its customers.
 
aociswundumho said:
He doesn't believe the Jews murdered by Hitler had the right to live.
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Why do you lie about what I posted in that thread? And why are you intentionally detailing your own thread by talking ABOUT me, instead of addressing the topic?
 
Helix said:
The answer is that global warming is causing more wildfires (as well as other disasters,)
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That, and it's also the fact that California has far and away the highest total value of real estate. CA residential real estate alone is estimated to be more than $9 trillion. Next closest? FL at about $3 trillion. In fact the value of CA residential real estate is worth more than that of FL, NY, and TX -- combined.

So that's why insurers are trying to drop CA residential real estate like a cigarette butt. Insurers have very sophisticated models. They know what's coming. They know they can't afford to cover the real estate losses they will be expected to cover in the near future.
 
rahl said:
Why do you lie about what I posted in that thread?
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Let's find out:

Did the Jews murdered by Hitler have the right to live?

I expect you will evade the question, as usual.

rahl said:
And why are you intentionally detailing your own thread by talking ABOUT me, instead of addressing the topic?
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Because antisemitism is morally repugnant.
 
aociswundumho said:
Let's find out:

Did the Jews murdered by Hitler have the right to live?

I expect you will evade the question, as usual.



Because antisemitism is morally repugnant.
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While perhaps an interesting subject for discussion, it has nothing to do with the thread.

Perhaps posting a different thread, and let's stay on topic? Just a suggestion.
 
aociswundumho said:
You guessed it: progressive regulation

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Because they lost a lot of money on the fires prior to the Malibu/LA fires. Though I will concede CA.'s insane overregulation adds to the burden of rebuilds. So let's just agree it was a combination of both factors.
 
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