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As Wildfires Rage, California’s Insurance Market Is in Crisis
Providers are offering fewer and fewer policies because of costlier climate-fueled fires, homeowners moving into riskier areas, and outdated regulation of the insurance industry.
In response to questions from WIRED about changes to State Farm’s coverage, Sevag A. Sarkissian, the company’s spokesperson for California, highlighted previous statements the insurer has made about ceasing new business and its decision not to renew some policies. Forest management in California—including a misplaced focus on fire suppression for more than a century—has also been responsible for the negative trend in wildfire activity, as it’s allowed burnable materials to build up in the state’s wild landscapes. “If you suppress rates and try to tell companies that they can only charge X, and they start losing money, eventually they are going to say: ‘I’m going to be super picky at that artificially low premium,’ or ‘We’re not going to write anybody, and will come back when things get reasonable,’” says Russell.
Or read this on Wired
