Consider This from NPR Insurers Flee California As Catastrophic Wildfires Become The Norm
Jun 21, 2023
California is grappling with increasingly severe wildfires, prompting some insurers to withdraw from the market. Homeowners are finding it difficult to secure coverage as companies face overwhelming financial risks. A personal account illustrates the struggle of moving to state-sponsored insurance amid these challenges. Experts highlight the outdated pricing models and regulatory hurdles complicating the situation, raising concerns about the future of the insurance landscape in an era of climate change-driven disasters.
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Homeowner Loses Insurance
- Drew's home insurance was dropped due to wildfire risk, and he couldn't find another insurer.
- He had to buy expensive, limited state-backed insurance and is now selling his home.
Californians Turning to State Insurance
- In the past five years, many Californians have lost their home insurance policies.
- A growing number now rely on the state's insurer of last resort.
Insurers' Losses in California
- The insurance industry experienced immense losses in California during 2017 and 2018.
- These losses equaled two decades of profits, and insurers are concerned about future risks.