What does the captain of the Titanic and California’s Insurance Commissioner have in common? When California’s insurance industry steamed toward a looming “iceberg,” Ricardo Lara, California’s “Captain of insurance” was asleep. In May we struck the iceberg.
How did Captain Lara respond? In a Consumer Alert issued by his department, “climate change challenges” were blamed. Have you noticed when anything goes wrong, climate change is the first to be blamed? No one talks about disastrous climate change policies, like restrictions on clearing dry brush and dead trees.
The alert also cited the state’s FAIR Plan as a “last resort.” Do we really want government to be the only source for our coverage? The FAIR plan is already expensive and if it becomes the only insurance available, prices will skyrocket. Customers will deal with bureaucrats rather than local agents. Everyone counted on the actuaries to be correct because we had to keep our promises. Company executives were motivated to keep premiums down because of competition.
With an all-hands-on-deck approach, this can be remedied. Wise management of our forests would renew our environment and reduce risks. A shift from hostility to civility with respect to regulations, specifically addressing Proposition 103 which handcuffed insurance companies, would also help to right our ship.