California wildfires will be a $20 billion plus loss for insurers: Wells Fargo's Elyse Greenspan

[@alanweiss3534]

Like a good neighbor, state farm is gone.

[@555125kevin]

🏃💨

[@baldeagle4710]

You think State Farm will pay out? Lollll

[@Joe-n4e8e]

I'm now cringing each time I see a State farm commercial knowing these poor, devastated people having lost everything and Statefarm has no, none, nooo desire to be any part of their lives.

[@brokeduece1691]

State Farm is to big to fail. They'll make the money back somehow

[@robertsmentkowski312]

The insurance industry had to leave California because of the over regulation with price caps. Price caps means you get less of something. It’s called economics and it’s very basic. However, Democrats don’t understand that. DEI stands for Democrats employee idiots

[@Brandon-sr2bl]

She only said “you know” 50 times

[@JamesL-pk9ct]

DEI hire

[@Saratogan]

I get no confidence from her analysis or her presentation skills.

[@jamesleng6231]

I took a shot every time she said I know, I'm currently going to the hospital for alcohol poisoning.

[@SuperGabby1959]

Super annoying & weak analysis

[@chuco915C]

@@JamesL-pk9ctis that the best they have for that position? Wild man

[@UAL320]

Who will be the “Luigi” of homeowner’s insurance when the companies come up with excuses not to pay?

[@baldeagle4710]

Exactly my thoughts. These companies will NOT pay.

[@JTDyer21]

Insurance companies have no problem to take your money but when it comes time to pay out they don't wanna pay. That's a scam.

[@baldeagle4710]

They won’t pay. Believe me. And they will cancel your policy if you don’t pay for one month

[@tomtom9792]

20 billion…… no way. its a whole lot more at least 50 Billion!

[@DickNasty480]

The $20 billion dollar number is JUST what the insurance have exposure for claims on property, vehicles, business interruption insurance etc. There are HUNDREDS possibly thousands Of homes that are not insured and those are the people who are screwed. The total cost of this fire will be well over $150+ billion and this doesn't even account for rebuilding infrastructure, more reservoirs, back up systems, power lines, hydrants, pumps, fire trucks water lines etc.

[@jimjohnston7688]

Agreed, 20b is way too low.

[@edwardonyaoking8173]

It will 200 zillion $ amount to rebuild house in Kalifornia

[@jimjohnston7688]

@ you’re probably right, they will have to make up new names for amounts of money 😂

[@ghsense2626]

What happend to the 200b destroyed and they only paying 20b?

[@CapitalJ247]

If they're saying "Reinsurers should not see significant losses" then that means either insurance companies are already planning to not pay claims, many claimants are underinsured, or many people aren't covered.

[@baldeagle4710]

Insurers aren’t planning to pay out

[@soulfulwapechi]

Yup exactly -- I bet many aren't insured. The insurance companies risk are minimal than what could have been had they stayed. Wild!!

[@michaelsgheujfnkxi]

“You know?” 😂

[@snoopcow]

They will hike rate for everyone else across the country to make up for those losses. Evil industry.

[@MrJoker-]

Why should others cost go up for people who choose to build in a high risk area? One policy can change all that, you choose high risk areas, YOU take the loss.

[@snoopcow]

@@MrJoker- I know. It's a dirty business. In file-n-use states, carriers don't need state approval for rate hike, their goal is trying to recover the loss quickly. Subsequently, a lot of people will foot the bill, even if you live 1000 miles away. I work for insurance company and I feel ashame of this industry practice.

[@MrJoker-]

@@snoopcow @snoopcow, that needs to change , same way commercial loans tumbled , so will insurance , the writing is on the wall with the healthcare industry incident.

[@ramyaramasubramanian2873]

You know you know you know you know you know

[@alc5792]

Insurance companies will just claim bankruptcy.....

[@baldeagle4710]

If that’s a way of getting out of paying probably

[@zerem1726]

The final total for U.S. aid in 2024 included $47.7 billion for Ukraine and $10.4 billion for Israel, plus an additional $2.5 billion in military aid for Ukraine. That brings the combined total to about $60.6 billion. That's why we don't have any money left for the American Public.

[@baldeagle4710]

We do, we just don’t spend it on Americans. In all fairness, I’d rather the money go to the poor than millionaires in palisades. Celebrities won’t struggle even if insurance doesn’t pay out

[@gjunior2471]

I have no sympathy in regard to material loss for those people.Ive known people who have lost everything in fires and got zero government help.Zero.Should be equal.

[@seismic6435]

... because Ukraine is a proxy war. It's not very subtle

[@NunYa953]

Q: "what are the potential liabilities for insurance companies?" A: "you know, you know, you know, you know, you know "

[@stacysilverman6366]

I think there was a box of donuts in view in the studio. She couldn't concentrate.

[@iaf010]

The real question is "You know" ?

[@joshlin8642]

you know, you know, you know..... wells fargo you know now ...

[@CoinsInTheWild]

What I did not hear them mention is the fact that CA Fair Plan is Actual Cash Value Settlement not Replacement Cost they will not pay to rebuild someone's home. So if a house is $3M in Replacement cost a consumer could receive something small like $500K nothing more, no coverage for contents.

[@DeenaMilkers]

houses in fire prone areas of california often do not have the risk of being in such a fire prone area priced into the cost of the home. maybe these will cause people to finally recognize this but i doubt it

[@davidh8081]

The Fair plan doesn’t even offer liability or loss of use coverage. Not to mention, the the lack of theft and vandalism coverage in Fair plan. To put into perspective, if a home happens to escape fire damage, but is vandalized by looters, home owner is out of pocket 100% of the loss. There are wraparound policies that provide this coverage but most people wont buy as this is an additional expense and Fair plan is expensive enough. Ive seen a decent amount of policies in the $30k range in annual premiums.

[@keithstringer1140]

The insurance companies are not going to pay billions in claims to these property owners

[@baldeagle4710]

Agree 100%

[@Zealor365]

I wonder where Elyse got her education. During the course of her answers, she must have used "You Know" at least 50 times. Her management should send her to a speech class before her next public appearance.

[@wafflewafflegod]

This is exactly why insurance companies are trying to get out of the state

[@sirmadam8183]

Bottomline: insurance companies aren't betting against climate change. The home ownership paradigm as a good investment will eventually change.

[@baldeagle4710]

Yup. I don’t own a home and can’t afford to, but even if I did I wouldn’t want to. Way too complicated. Attorney and real estate agent just to buy a house, home insurance, maintenance , bills etc it’s so many expenses and you have to properly maintain it or else you’ll lose money on it just isn’t for me.

[@scottthomasen8978]

Just googled "what was last year's insurance companies profits last year. Got $88 billion...double the profits of the prior year, and a record. If they invested wisely..they should be fine.

[@kooter6136]

They are not "losses" for the insurance companies this is the very reason they collect the money.

[@chriskey7440]

The problem is, the insurance companies weren't allowed to increase premiums to fit today's costs of doing business; meaning insurance companies may not be flush with the funds, to pay out all the claims. Just. Like. AIG. In. 2008. You realize SF just paid billions out towards the flood/hurricanes in Florida? Then they paid for the Maui fires as well.

[@kooter6136]

@chriskey7440 there is a lot I don't know about the insurance industry. Even if insurance companies are able to fund the rebuild these people are in for a long road 😔

[@chriskey7440]

@@kooter6136 no worries, if you want an idea on how volatile insurance is, research the NY Cab Insurance company, that just went belly up. Many insurance companies make their money on their investments, not on the policy premiums. The cost of doing business in California, isn't worth it anymore.

[@kooter6136]

@@chriskey7440 Really curious of this is finally going to push down house prices in Southern California. I grew up there in the late 80 '& 90's. Houses that are worth $2-3M now were $200K back then.

[@chriskey7440]

@@kooter6136 something definitely needs to change. Overinflated house prices, unsafe living areas, homelessness, the high costs of doing business in California, etc. But that takes strong/smart leadership, do you trust the California politicians to look out for the majority's best interest? I sure don't

[@slucas6303]

You know, you know, you know 😖

[@Jason_The_Man]

lol! No, more like 150 BILLION dollars will be the cost. Loss of business and personal revenue will hit the tax base. Remember that Palisades is one of the wealthiest neighborhoods in the Los Angeles. The economic impact of this will affect the entire nation.

[@michaelhurley545]

You're going to have all these people going in to the rental market. There is going to be big jumps in rental prices...

[@Benjemil23]

Doubt these millionaires will be moving into rentals

[@Netstarr88]

California along with Florida are toast

[@goolooggg9005]

The LA fire damages are >$135 billion, insurance MFs offering pittance 🤬

[@ghsense2626]

Who cares? Nobody told them to build in danger zones

[@tonysu8860]

That last bit mentioned in this video about passing on costs with a 20-30% hike needs explanation. It may be what was mentioned in another program what was described as the measure of last resort when insurers refused to issue a policy and the FAIR program runs out of funds, then the insurance companies abuse are allowed to increase rates on everyone else to pay for those losses. In other words, eventually every other California homeowner who has a fire policy that isn't directly affected by the fire losses will end up paying a share of the loss and recovery There is no free lunch for anyone and insurers are guaranteed not to go insolvent.

[@catherinerenee2668]

Insurance is legalized extortion. Thats all they talk about is money money money. Who loses? People paid in for YEARS for Insurance to be there when they now need it. How is it a loss for the Insurance? Please explain. Thats the whole point. All the excuses are BS.

[@56brever]

Remember that insurers will pay the cost to rebuild, not the market value. That's a huge difference in the malibu area.

[@irwinjimenez]

Why isn't anyone looking at the homeowners who failed to maintain the required "Defensible Space" mandated by all the Local Fire Depts. in SoCal? Did they think that they would all be the exception because this is L.A.?

[@iamgabriel5823]

I have the CA Fair Plan. I'm really curious to see how this all plays out. I live in the mountains of N. Calif. so I live in wildfire country, but who would ever have believed that so much of L.A. would be destroyed like that.

[@sibarra417]

well is the states going to reimburse those insurance companies? cuz they pulled out of California for a reason they warned the state government about the dangers of those dead trees and vegetation around those homes and the government ignored their warnings.

[@curtisgrindahl446]

These are the hard questions policy makers since don't want to answer. It has been easier to point a finger of blame than to accept the reality climate change is making it extremely expensive to sustain development in some regions. Insurance companies are not charities and government can't be the backup against fires, floods, droughts. People don't want to pay taxes so infrastructure falls apart and services are depleted. Owning Greenland and the Panama Canal will not solve our problems... and attempting to deport every person here illegally will only make matters worse. This is a nightmare and I'm afraid business is in no position to make it all go away.

[@EduardoPizana712]

Does the insurance companies warned the government officially about the discovered issue or just they hide the information and use it for own personal benefit?, is not just about the money bit they hide?

[@arielmscisney6128]

You know, this is a real tragedy. You know? But why would you insure a home built in what celebrities have called, "A matchbox ready to blow"? You know?

[@brandi1294]

Insurance companies have been reckless with their spending and have not managed their profits properly yet if you can’t pay out, their customers covered by their policies

[@wilee.coyote5298]

Pacific Palisades is one of the most risky places for fires and is also one of the most expensive housing areas. Fire insurance is legalized betting on the risk of fire loss. If insurance companies can't break even, they won't bet. Neither would you.

[@rgrkim]

Democrat most of my life, I will never vote for newsom, from CA. Never again for Democrats. Voted for Trump and all Republicans.

[@scottthomasen8978]

He caused climate change?

[@julienrockingham-ip4co]

Rich people problems

[@Poseidon-i4t]

Can't believe I have to be the one to point out this super-obvious thing, but fire can be put out by pouring water. Why not just use water to stop the fire? The incompetence of the LA water department people is staggering. Fire them all and replace them with more competent people.

[@SBE1]

The insurance companies that cancelled were smart. They should be applauded for being smart.

[@GuardianOfGalaxyV2]

Allstate can handle this. Ok, I’m just playing

[@GhostAssault323]

Sure just hike the rates. Sooner or later, you just going to price out the very people you doing business with.

[@enteradj]

We know

[@triciab7750]

Insurance cannot pay due to neglect.

[@lifeofsui3864]

No bailout……not a tax payers issue

[@HappyestMoments]

BAD SISTERS SEASON 1

[@WilliamDurham-q7f]

State farm is not only gone but convicted of crimes.

[@acotrel1]

Insurers will not lose $20 billion because of the fires in California. Insurance is like any other form of gambling - 'the house always wins' ! - Insurance costs are a major factor in cost of living increases. They cause rents and local council rates to rise. Landlords always insure their properties. - Risks arising from the nuclear industry are usually exclusions in insurance policies. James Macpherson's argument is that Peter Dutton has 'already won the argument' about nuclear energy. - If India has 22 nuclear reactors - that is very dangerous. Third world lack of safety standards is the main reason, corporations prefer to manufacture in those countries. It is easier to make a profit when people can be killed and injured in the process. - Some Fascists are very wise. How 'independent' is the Centre for Independent Studies ? - You would have to be joking ! Fascist hypocrisy is very unbecoming. Right-wing think tanks are oxymorons.

[@georgegraham9206]

Given the inflated value of real estate and mega houses that were built this might approach trillion

[@WilliamDurham-q7f]

Have fun moving on or rebuilding with no such luck or money or loans and no state conglomerate.

[@robsteal3887]

20 billion? Maybe on day one, need to add another zero.

[@alinthemind]

At least $50B.

[@ramakrishna5480]

A loss ? 🤬

[@SuperGabby1959]

Ridiculous joke of an analysis -selling a 10-30yr old house for $3mil means at least $6-10mil+ if insurers have to pay to rebuild

[@shwnshts9469]

Warren Buffett has the money. I'll believe it is a legit loss when that shareholder pays

[@gregorymilla9213]

More like 50 billion

[@seymorefact4333]

😂Just print more money... print. It's that easy.

[@CC-kl4nh]

Home insurance are gonna be bankrupt.

[@Eatcrap00]

But they can send $200 billion to Ukraine ?? ?

[@jeanmarcgomez1630]

Don’t bother ! Billion dollars are sent to Ukrain .. stay strong that’s the way

[@copyprint-fz2hb]

if you live in a poorly run Liberal city , say good bye 🤣

[@johnholmes914]

Your house wasn’t worth what we insurance covered…

[@petergriffinson1907]

Ukraine got more ROFL

[@wendyjones363]

Lucky to be insured!

[@JonahSmith-n9l]

Hahahaha

[@Loki-ew6gg]

Its Karma from God. God is punishing America for the actions in Palestine

[@Aktetcis]

That is morally wrong. Palestine is under attack because they house terrorists who massacred innocent people. Comparing that to the fire in California is just unacceptable.

[@daltonvanhorn5167]

Seems like it's big oil, which is trumps god.

[@AlirezaSohrabi-d6b]

What did Palestinians do in a past life to deserve their Karma then?😂

[@dhaseltenam8469]

What a wonderful God? Does not punish Putin, Isis, Taliban, Kim Jong, Xi Jiping but punish innocent people.

[@Loki-ew6gg]

@ innocent people dying in Palestine because of the west

[@keithreno9341]

dont worry, the democrats will fix it. They can send the extra campaign money left over from Harris.

[@GuardianOfGalaxyV2]

DEI officials

[@youtubesucks8024]

$200 billion

[@luap2551]

Minimum 100 billion ..... their estimates are a joke

[@JayS-g1s]

🎉🎉🎉🎉🎉🎉🎉