Reinsurance expected to be available to companies on ground in CA, says incoming USAA CEO Andrade

[@thomascrew8268]

I lived through Hurricane Katrina. The insurance companies denied or delayed as much as possible and then cancelled many policies.

[@punkagrrlzero]

I'm here in CA. This is a yearly occurrence for most of us. We need, and NOLA needed, a cost effective government insurance that covers 100% rebuilding no exceptions. Private insurance is horrible. Just look at our health care.

[@steven4315]

Katrina was mostly flooding, not covered by regular homeowners' insurance. In any case, I bet California insurance laws offer better protection than any red state.

[@simonebulla5869]

Who would never have thought that?

[@ocampbell1954]

They always talk about their loses, but never their profits.

[@RonDamonesoeso]

This company is a reciprocal insurance exchange so a very simplistic summary- the members benefit from the profits too.

[@kbkesq]

State Farm lost $7B last year. The real problem is socialist price controls from department of insurance. They don’t set profit levels for Facebook but they do on insurance. So insurers left.

[@kbkesq]

2:25 correct. The department of insurance forced price controls.

[@chriskey7440]

​@@kbkesqyup, and SF lost money in 2023 too. People don't understand how expensive home and car repairs are. This fire could really decimate the insurance market in California, I was shocked when I saw what Sunset Blvd looked like!

[@abbottmd]

their profits are regulated though, by state insurance commissions. they cannot just charge whatever they want to.

[@adobopapi5867]

Luigi was right.

[@johnnyguitarwatson5288]

VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY VERY RIGHT!

[@CSUSBGOLF]

My dad, a California resident had zero homeowners insurance claims in nearly 30 years......two years ago he filed a small claim for a plumbing issue. Total cost to the insurance company was like $3k. This year they told him that he needed to get his roof cleaned because there was supposedly moss on it (totally fabricated) which could cause significant loss to the company. If he didn't, they would for sure cancel his policy at the end of the term. If he did, they would reevaluate but then his premium would go up 40% next year. He searched elsewhere for a new policy and most said that they wouldn't cover him because he had a claim within the last three years. He ended up getting the roof cleaned and sent them pictures and they still weren't cooperative. Finally, they complied but that didn't prevent his premium from increasing 40%. So 40% increase is explained by inflation how?

[@ryanwalters6184]

Just wait until next year. 😮

[@w3s77]

Don't make small claims.

[@eile4219]

Premium increase for many reasons. It could be because your house value has increased by more than 200% over the last 30 years. It could be you are in a risk area. Some companies don't even write new insurance in those areas anymore, so they can increase your payment because you either continue to use them or get California Fair Plan which is much more expensive and cover less.

[@O1012-u7q]

Never ever file an insurance claim you can afford to pay. Not even windshield repair.

[@donaldlee6760]

Thanks, so the lesson learned is to never file a small claim

[@jaym9846]

CA costal regions are jammed packed with people, cars, and buildings. Traffic is at pre-jam levels daily. With dry tinder and strong winds as accelerants, a spark can initiate an uncontrollable disaster within hours.

[@kbkesq]

Arsonists know this. These were all arson like all the big wildfires in California and Hawaii and Canada

[@UAL320]

They hate paying out, but they sure love people like me paying in for 20 years without a claim.

[@TekaDon]

That's the definition of insurance. Distributing the risk.

[@Bbenton1959]

Insurance was started by the mob. It was and still is a racket.

[@canvaisushi]

More businesses will move out of CA...

[@michaelWells-ef9bx]

😂and go to Florida and Texas ?? …please- have we made America Great Again 🐷🐷🐷🐷🐷

[@hyakushiki23]

I think you're right and they will move to NV and AZ

[@ocbosco_]

I say if you don’t like cali, gtfo.

[@esquare807]

USAA has always been good to us. Been with them 30 years.

[@anas.9103]

These guys are crooks, they take your money and then cancel you or deny you. PERIOD!

[@tvtemplar]

What you all need to know is at 2:13 that is the main problem. All the skeptics are uneducated and ignorant to the fact that they want it cheap but yet they want the best outcome. GTFOH.

[@serg320]

Why is an independent company forced to insure ur high risk property?

[@who2u333]

Where for-profit insurance can't make a profit, they won't write policies. It is not about 'covering loses'. Honestly, they don't care about covering loses, they care about continuing to generate increased profits each quarter. The CEO's of for-profit insurance companies are not put in that position unless the board believes that they will keep the line goin up. In fact, their pay contracts likely parts where if the line doesn't go up, the CEO will personally lose millions and even their jobs. This is not complicated.

[@340wbymag]

Someday perhaps, politicians will take a moment to study water harvesting methods that could turn those, dry, arid hillsides into lush, green spaces that are resistant to wildfires. Here is my suggestion for the state. Create a new "California Conservation Corps" that employs thousands of people to create swales, terraces, and other water-capturing features on those hillsides to reduce or prevent runoff and to capture rain, allowing it to be absorbed into the soil. It isn't rocket science. A one-cubic-foot hole in the ground can hold 7.5 gallons of rainwater. Imagine thousands of those holes on those hillsides, each collecting and holding onto 7.5 gallons of water to be slowly absorbed into the soil. Millions of gallons of water could be saved and utilized to restore groundwater on every hillside just by digging small holes in the ground. In just a few years, the state could make a miraculous transformation that would save billions of dollars, restore wildlife, and prevent wildfires. IF ONLY POLITICIANS COULD BE EDUCATED BY THE MEDIA.....

[@gxguy2906]

Look they will raise premiums nationwide to pay for what happens in Cali. We don't choose to live there so why put a target on our heads?

[@jdm1039]

Same reason we pay for hurricanes in Florida and tornadoes across large areas of the Midwest and south east. If you can find an insurance company that only operates in your state go for it. They are few and far between because they cannot spread the risk of loss over a large enough population.

[@PhilipEvison-p9b]

Everyone is talking about insurance moving forwrad, but no one is talking about bringing in Australia's bush fire experience and rebuilding housing to be more fire resistance . Most of these structures where not built adequetly to withstand this fire clearly.

[@AlexYounger]

Don’t say “climate change” or Joe will have a hissy fit. Just say, “increased weather events,” or “more tornadic activity.”

[@DrJoJoBoxer]

He has become increasingly political like this in the last few years or maybe I was not watching CNBC enough

[@jdm1039]

​@DrJoJoBoxerI have stopped watching because of Joe.

[@joshwalker9675]

These people are full of bs. They are making everyone else cover the cost of these high priced houses. Everyone is suffering because they don't want to Uphold their end of insuring people that cost them. This is why people don't think insurance industry is fair. Not to mention these ceo's are getting ridiculously high salaries

[@chivasx557]

6:28 they dont make money ? So they were running a charity 😅? These guys are such liars! Fight these losers !

[@josephdirnfeld3593]

Lies and lies and they never pay

[@theguildedcage]

The cost of good sold? You mean your multimillion dollar salary.

[@KK-pm7ud]

The cost of goods sold is the property damage. He is saying that the costs of homes and cars increased because of inflation while they are not able to pass along those cost increases in the policies while the risk increases. Stop focusing on these insurance people and ask yourself why Karen Bass cut $17 million from the fire budget and why she was in another country while all of this was happening. Not enough discussion about the mismanagement in California.

[@Gurgleskletch]

Yes I pay California fair plan because no other insurer existed for fire. Paying fire insurance $5.4K annual high fire area at Yosemite.

[@rmaggie1676]

Unfortunately this happened to me. And strange thing same street other houses were insured with mercury ins. Makes no sense

[@Netstarr88]

Usaa insurance should be sued , for discrimination they don't sell to the public but ONLY GOVERNMENT EMPLOYEES

[@Blue_rosetx]

What discrimination? USAA is only for military members and their dependents. It's not a publicly traded company.

[@TheCryptoTeam]

Yes, the real estate has gone up. But, so has the cost of insurance. 🤦‍♂️

[@perryjones6196]

ILS Bermuda says the big one only and this ain't it.

[@user-fb6hy2eh5y]

The key to insurance staying in business is to increase rates so that over time, the profit customers would make selling the house, would break-even with all the cash paid for coverage.

[@sakismpalatsias4106]

I agree.

[@dinkeydink9376]

CA homeowners insurance is HALF US average, it should be DOUBLE!

[@untouchable360x]

This CEO will make millions, disaster or not.

[@snoopcow]

Insurance is a dirty business, all they want is to take everyone $ while paying very little out Sickening.

[@otherZinc]

Wow, Becky.

[@nannersguyaners2745]

It’s all actuarial - if the loss history is bad insurance companies either will raise premiums or cancel policies … it’s just economic reality…

[@topcolas7075]

They better insure them or they won’t be able to go out to public ever

[@UAL320]

Insurance companies are like Vegas. The Vegas strip didn’t get built by the house losing billion$. The problem is as soon as the companies start whining, the government takes over, giving them an easy out.

[@jamestreanor182]

What’s with this lady interrupting Joe?

[@jonathanward1527]

Those people are screwed. Deny, delay and don’t pay is their future.

[@Ma-sb4kc]

The US government can just create more money freely and bail out the insurance companies that already took the profits over the past years 🙏 Devalueing the USD, in the end causing higher costs of living and general inflation ❤

[@samuelmashpow9854]

What if insurance companies paid for their own firefighting crew to save themselves from paying out on the damaged homes.

[@Bbenton1959]

Appropriate rate? Billions in profit.

[@allenking66]

Free enterprise has again failed the American homeowner.

[@maxking3]

Funny how you can run a segment like this without addressing the elephant in the room: 50% of Americans do not believe in climate change. Unfortunately 100% of insurance mathematicians do.

[@ConchaQuezada-x8y]

They always raised AAA RAISE CAR INSURANCE EVERY YEAR

[@freddonson5436]

Contessa? Shut it,..no idea what she's talking about...

[@johnnyguitarwatson5288]

Everyone should literally just stop paying insurance in UNITY! At the same time!

[@j.wilkerson1905]

Maybe the insurance companies could stop spending hundreds of millions on stupid commercials during football games? That would be a start...

[@robertneal6301]

Our media's arent saying how much money an materials this is going to cost just for instance people where are we going to get all the red woods all the other prescious woods we have wiped out oh that's right well go to another country and take there stuff wake up people

[@Foxygrandpa2131]

Emily Blunt?

[@Flushandfit]

More people going to Tennessee

[@gsmoneybabyxxl7575]

I see nothing but crooks

[@eric.nathanson]

They keep avoiding the words “global heating.” As if Santa Ana winds in January rather than rain were somehow normal.

[@ThomasMullaly-do9lz]

The working class all over the country will end up paying for this by higher taxes government borrowing more and insurance rates. I would leave California. This will damage the rest of the countries economy if you don't source the materials to rebuild inside the United States.

[@kbkesq]

Arsonists have better connectivity- they watch the weather 2 weeks out and they get feedback on social media of their “accomplishments.”

[@WildCard42069]

underwater CRE developers did it...

[@CodeSpaghettiChef]

For profit makes everything more expensive

[@jallapavan]

These are fellows who need to be under lie detector tests

[@punkagrrlzero]

Get rid of private insurance so they can't set the prices.

[@noahb9351]

so you blame insurance companies for global warming events? Is that correct?

[@pbrown0829]

Than what? Government insurances come in. I’m sure that cause so many disasters and unforeseen consequences. Your lack of understanding on economics is scary and please don’t have kids

[@noahb9351]

@@pbrown0829 did you GET BURNED YET?

[@tvtemplar]

That’s right have it managed like the national flood insurance program where it’s even more expensive and harder to get claims paid out.

[@beyondthecodeeditor4894]

Lies like always

[@skylerskyler2144]

Lmao @ everyone who lost homes.

[@funstuff9921]

The state’s politicians do a terrible job mitigating and managing risk and the insurance companies realized it.

[@Netstarr88]

Lol Oh yes reinsurance is available. Oh sure it is

[@Nidatuerrow]

Juan Andrade gives me Mayorkas vibes - kzbin.info/www/bejne/b6TckJZtmNqGoMU

[@iMetaTV]

Gang of scam artist insurance business

[@BRuane-pw6xq]

Trump wants more M,&A in insurance which will only raise rates . Go ahead buy insurance companies .

[@smcgarrity9472]

California voted for this. Thanks democrats