Deregulation rather than fossil fuel controls needed to fix California insurance market

  • 📰 ladailynews
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 59%

대한민국 뉴스 뉴스

Deregulation rather than fossil fuel controls needed to fix California insurance market
대한민국 최근 뉴스,대한민국 헤드 라인

While the Department of Insurance and the Hoover Commission are suggesting tweaks to the California insurance regulatory framework, deregulation is a simpler answer.

us, California’s home insurance is in crisis, as many insurers have decided to reduce their exposure to the state or exit from it entirely. The crisis does not only impact homeowners but also apartment building owners and HOAs whose bylaws require the purchase of policies to cover their communities.

While debating climate science is beyond my scope here, it is worth noting that climate change is a long-term trend rather than a new development. Indeed, none of the last four wildfire seasons have approached either theFurther, California cannot solve the climate problem on its own because the state accounted for less than 0.8 percent of 2022 global emissions.

In a free market, one might expect insurers to compensate for increased payouts by raising premiums. But California’s insurance rate regulations hinder this adjustment. Insurance companies “admitted” to the California insurance market must obtain approval for proposed rate hikes from the state’s Department of Insurance.

Another alternative is for customers to join the California FAIR Plan, a form of state-mandated last resort insurance. In the three years ended September 2024, the FAIR Plan’sfrom $202 billion to $485 billion. But the plan receives no state aid and must be fully backed by admitted insurers, raising their risk of staying in California.

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

ladailynews /  🏆 332. in KR
 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

대한민국 최근 뉴스, 대한민국 헤드 라인