Reinsurers, or the companies that cover policies for insurers, have upped the price they charge insurance companies by as much as 50% for catastrophe loss coverage so far this year, to reinsurance broker Gallagher Re. Those hikes could trickle down to end customers, homeowners and businesses.
The state has seen"meaningful price increases now compounding over multiple years" but the"general sentiment is that current pricing levels are more than adequate," the report said. California isn't the only state where insurers are growing more cautious. Florida and Louisiana have struggled to keep insurers from leaving the state following extensive damage from hurricanes. Premiums are rising in Colorado amid wildfire threats, and an Oregon effort to map wildfire risk was rejected last year because of fears it would cause premiums to skyrocket.
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