California's Insurance Catastrophe Explained-How Government Caused Another Crisis | What's Ahead

Steve Forbes explains why insurers are refusing to take new business in California-and why it should be a "wake-up call" for all politicians, citizens, and corporations.
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[@C4Faute]

Dealership: "You need insurance today to drive the car off the lot." Insurance Company: "We no longer provide same day insurance to motorists."

[@aceyorba]

Yep I just heard today it is now 14 days...F T A

[@susannicky]

Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.

[@graywilliams_77.]

This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.

[@ctcv-to8kq]

I just got a notice from my home insurance company that my policy will be dropped in January. I've been looking at leaving California for some time now but not real seriously. I believe I just took a giant step forward toward that possibility.

[@wilburt57]

Get out while you can go somewhere that won't ban Californians. They make $500 billion each year...and have over $8 trillion in reserves, up from $2.5 trillion just a few years ago.

[@mchume65]

My homeowner's insurance here in San Diego, due in September, went from $983 annually to $1992 annually. Slightly more than doubled.

[@LMF_Harris]

Been looking for auto for weeks

[@davidfairless1028]

mine went from $1500 to $3700 under FAIR. For a 900 sq ft house.

[@WESTERN308]

Research proposition 103 passed in 1988.

[@KEvinHurney-b2p]

Lucky… Mine went from $1500 to $10,700.

[@PeterBlack-nl5hy]

That sounds dirt cheap to me. In Connecticut, I pay: for 1800 square foot house, $3, 400.

[@CRDrawing]

How can you say existing policies won’t be affected when they’re dropping long term clients with no claims?

[@WESTERN308]

Research proposition 103 passed in 1988.

[@bihsaidwhatnow2392]

April, I received an email from CSAA-Northern California that after 18 years, my policy was not up for renewal and the two reasons given are out of the Twilight Zone!!

[@WESTERN308]

@@bihsaidwhatnow2392 Research proposition 103 passed in 1988.

[@bihsaidwhatnow2392]

@@WESTERN308 Thank you, I will!!!!

[@wilburt57]

@@WESTERN308 I did. It's about as bogus as the democratic legislature. "Protects consumers....." What a joke? If the insurance company doesn't want to comply, they just drop your policy and they leave the state. What can CA do about that? Nothing....

[@Iluvpaws_1]

Prop 103. Voting stupid has consequences

[@WESTERN308]

So true, and most people do not know, or understand that this storm started in 1988 when prop 103 passed.

[@Iluvpaws_1]

@@WESTERN308 I’m old enough to remember. Trial lawyers started this crisis, then made it worse w prop 103. There was another bill to make us a no-fault state at the same time when prop 103 was on the ballot, but lawyers circled the wagons

[@jenningsmills5398]

Well it seems to be one way to get people out of their 2.9% mortgage.

[@henrythompson7595]

What are you talking about? I have a home with 3% int. Mort, IF I could find someone to buy it (nope, mortgs today are 2-3 times what I currently pay) and then, Joe prospective buyer still needs to find an insurance company to protect the bank - no one can buy or sell a home in Calif. Is this a scheme to get the cost down to 1/5 what the house is worth, so some investor can buy up all the homes at rock bottom prices? So all the businesses leave the state, real estate goes down the toilet, jobs are lost, you buy your groceries in Nevada or Arizona, and then we all live in Detroit. My home owners insurance DOUBLED this year, because the company I had left the state! Car insurance doubled.

[@WESTERN308]

@@henrythompson7595 Research proposition 103 passed in 1988.

[@aquilifergroup]

You’re all the same. You just want our money. Please don’t pretend you care about us.

[@StarknightSK]

Looks like Insurers aren’t appreciated by Californians. They are losing money in the state. Payout > Income. They should all leave. Gavin can create a State run insurance company like British Columbia (Canada).

[@isaac.anthony]

@@gooser__43 We will all be happier and have more money in our pocket, as the FAIR act is cheaper and makes sure people ARE insured. Bye bye, don't come back with your insurance price gouging BS!

[@isaac.anthony]

@@gooser__43 State sponsored minimal insurance for fire damage. i'm in Sacremento, and our county is a lot less prone to wildfire also we have decent fire fighters here, in the city, thanks to? TAXES! That republicans love to hate. PGE is also responsible for a good amount of those fires, but people like Forbes neglect to mention who CAUSED most of the damage in the first place...

[@moorefacts6605]

@@isaac.anthony Exactly!

[@wilburt57]

@@isaac.anthony who caused the damage? ENVIRONMENTALISTS who fought to keep the forests pristine...without any logging. Well, in one generation, the fuel load has increased. PGE has their faults but it has been the environmentalists who have sued to KEEP PGE from cutting trees down infringing on the power lines. If you want to point fingers, start with our environmental policies. Even the left is recognizing that gee.....maybe we should thin the fire load. After all, the Fire Science team at UC Berkeley has been advocating for forest management since 1949. Look them up if you don't believe me.

[@KEvinHurney-b2p]

Our insurance jumped from $1500 to $10,700. That’s a big hit for a school teacher. We are stuck.

[@cwr8618]

terrible!!

[@e.r.6147]

Where u living at?? Sq ft of home is?

[@dianascrimger284]

Can Californians legally sue Gavin Newsome and Richard Lara the California insurance commissioner for cancelling our state farm insurance coverage on our homes? We do not have car insurance when we only have a California id card. We do not have a car! For medical reasons we do not drive! We had cataract and glaucoma eye shunt surgery!

[@patrickorourke41]

The CA dept of insurance created this crisis and they know it. Commissioner Laura and his dept refused to issue auto rate increases for two years during COVID. He even had the audacity to claim insurance companies haven’t been asking for adequate rate, when in reality the dept rarely approves anything over 6.9% (Wawanesa and Root being the exception 33% and 65% rate hikes respectively). God forbid we ask for 7% or more because that triggers public hearings where consumer groups can argue why they shouldn’t take rate. The home insurance market is even worse with a lot of carriers non-renewing clients or reassessing fire line scores. Couple that with soaring reconstruction costs, labor shortages, and inflation and it’s a recipe for disaster. I’ll say this, if you plan on shopping your insurance, do it MNIMUM 30 days in advance. Cooperate with your agent and get ALL DOCUMENTS signed and completed ASAP and cooperate when we ask for additional underwriting information.

[@larryhutchens7593]

Cooperate with your agent? Translation: Bend over & get ready.

[@thesickness530]

I'm an insurance broker in Northern California - my hometown Paradise was obliterated by the Camp Fire in 2018. Now my friends, family, clients, and neighbors are dealing with the negligence of the Cal Fair Plan, and Ricardo Lara (in my opinion a disgusting human parading as an ally to citizens of the state, but really a wolf in sheep's clothing, and borderline communist) who have rolled out the new Duck Creek web page that is totally unusable, and offers no support, has wait times of 3-4 weeks for applications which should take 24 hours max. I've been on hold for 7 hours with them twice last week- This has reached the pinnacle of ineptitude. 😡😡

[@WESTERN308]

@@larryhutchens7593 Research proposition 103 passed in 1988.

[@erikh9991]

@@thesickness530 they are all this side of being communist. it's not going to get any better as the kids are brainwashed for big government.

[@wilburt57]

@@WESTERN308 Is that all you can do? research 103.....what a contribution to the discussion

[@xXzaydoggXx]

California does not account for new adults trying to make a living.

[@michelleamin657]

After decades of paying the same insurance company, how could the government let them just dump you like this. So damn sad how corrupt everything has gotten.

[@e.r.6147]

Blame the lawyers that sue them up the wazzooo lawyers must be stopped (re autoclaima and home claims )

[@MikeWhittenbarger]

Loved this concise and informative explanation. Steve, is there any way we could get you to do this type of explanation of the very similar crisis happening now in the Louisiana insurance market??

[@dannycohen4471]

There needs to be the following: 1. Tort Law reform - Personal Injury lawyers are feasting on insurance companies. 2. There needs to be regulation on auto body shops. They’re making millions in CA. 3. The CA Insurance Commissioner needs to be recalled.

[@jg1238]

This is funny because I know people in Florida and other states who can’t get insurance

[@I_AM_90s]

Thank you for the update!❤🎉

[@AWKuhns]

Thanks Steve. Maybe as part of your PSA you should suggest the power of voting.

[@richj011]

If you have to be told well

[@wilburt57]

As a conservative in ca, what power do I have by voting?

[@ggalloway1]

Editorials need to be titled as such. Also, you didn't mention what the regulations were, nor how they impacted some of the insurance companies.

[@Iluvpaws_1]

Insurance companies in CA have to petition the state government to raise rates While that was happening, environmental activists sued so that no one could clear dry underbrush and this made the whole state a tinderbox The title is adequate, but the video is too short

[@WESTERN308]

Research proposition 103 passed in 1988.

[@lisalee2885]

Fed up....WHERE IS OUR COMMISSIONER 😡😡😡😡

[@wilburt57]

at a local communist party meeting

[@Casey-summer]

People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Despite my husband and I having equal tenure in civil service, differing investment approaches yielded disparate results. Guided by a financial advisor, We are both retired and still earn monthly from our investments.

[@mellon-wrigley3]

Indeed, that's accurate. I'm currently in my mid-50s. My husband and I were on a similar path until a couple of years ago when I decided to shift my investments to his wealth manager. While I haven't quite caught up to his accumulated profits over the years, I'm at least earning more now. I'm generating income even before retirement, and my retirement fund has experienced remarkable growth compared to what it would have with just the 401(k). It's quite amusing.

[@sloanmarriott5]

It's regrettable that many individuals lack access to such insights. I understand why people might become anxious. Insufficient information can indeed pose significant challenges. Personally, I've been able to generate over $25k passively simply by investing through an advisor, and the best part is, I don't need to exert much effort. Regardless of economic fluctuations, skilled wealth managers consistently deliver returns.

[@louie-rose7]

​ *@shirleygarland4766* Could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation, and I'm seeking a more lucrative investment strategy to effectively utilize them.

[@sloanmarriott5]

Do your homework and choose one that has strategies to help your portfolio grow consistently and steadily. ‘’Camille Alicia Garcia” is responsible for the success of my portfolio, and I believe she possesses the qualifications and expertise to meet your goals.

[@louie-rose7]

I've taken the initiative to research Camille Alicia Garcia online and verify her credentials. I'm impressed with her expertise, and I've reached out to her to share my financial market goals in detail.

[@larryhutchens7593]

Oooh, the guvmint caused another crisis. Greedy insurance companies don't have a damn thing to do with it? When money is flowing into their coffers all is good, along comes several disasters back to back and the money starts flowing the other direction and they yell foul.

[@billhinkle1653]

Imagine that- Tree huggers causing massive forest fires! "Oh the humanity"

[@drowe2]

Less than 1% of insurable property is in fire zones, but I agree tree huggers caused that. Very few mills have survived.

[@litebkt]

My premium went up by 1000 percent. I’m with State Farm. 730 homes were lost last year to fire. Not all were covered by State Farm. But with a business sector taking in billions each year, surely the number of homes lost doesn’t represent a loss in revenue?

[@colleenallen3382]

Carl Demaio on his reform California KZbin show said in California the biggest payout, Number 1. ,the insurance companies have regarding homeowners insurance is having to pay out for water leaks that caused building materials to have to be replaced. Those materials have skyrocketed in price, NOT for forest fires.

[@B.M.-il3tf]

Buckle up butter cups it's going to get worse.

[@UnkJo357]

Wealth transfer 2.0.

[@isaac.anthony]

For price gouging insurance companies, yeah, duck them all, they can GET OUT! The FAIR act is covering us just fine, the only people complaining are republicans, you can all get out and the rest of us would be happy! Good bye, don't come back!

[@e.r.6147]

@@UnkJo357”you will own nothing and be happy” lumiNazi Klaus

[@well-blazeredman6187]

We don't have this particular type of over-regulation in the UK. My homeowner's insurance? £250 ..... per year. Auto-insurance for my Jaguar? £300 ..... per year. Annual multi-trip travel-insurance? Much less than £100, for the fit and healthy. I'd suggest that California's insurance commissioner should be intervening only when there is clear evidence that an insurer is making excessive profits. P.S. I lived in CA in the Eighties. Insurance was affordable.

[@peter7936]

In the UK, first, you are much less lawsuit prone than in the US, especially Calif.; second, you have national health insurance, so health care costs are much less and people don't need to sue to get their health care covered. Auto-insurance here covers liability in case the insured injures another person, and they need our very expensive health care.

[@tamikadaniels6556]

Auto insurance as well

[@erniewinn4896]

California Democrats in collusion with big insurance companies are dropping these policies and forcing older homeowners to have more expensive insurance because property taxes and insurance is so low since they bought the house in the 50s and 60s. California Democrats are forcing them into foreclosure so that the rich Chinese will buy these homes and thus pay the higher property taxes. State Farm will rather underwrite this new policy for the Chinese because its tens of thousands more a month, rather than the measly $100 a month from the struggling American Aging Middleclass, with fixed income and cannot afford the rising taxes and inflation.

[@mikebavoso26]

I think that State Farm has lost their "A" rating with the State of Califorina Insurance Commissioner's Office and with other insurance companies due to poor or under paid claims.... these companies can not sell new poli es in California.

[@ErikHolmes-t5s]

I live in California in the mountains and have seen my insurance more than double in a year from $800 to $1800 that's a 124% increase.

[@aultraman]

Perhaps that's more to just over regulation, because I've heard the insurance problems is also all over Florida. I haven't heard anything about Texas, but I consider Florida very different than California in terms of government regulations.

[@davidhollfelder9940]

Insurance until it’s not .. that’s until they’re called upon to pay out claims .. always been a ripoff.

[@danielvalencia6260]

AND CALIF. WE NEED TO REMOVED THE CORRUCT. POLITISIANS AND INS. COMPANIES.THEY ARE GOUCHING THE CONSUMER..

[@bernadettesison5979]

It’s September 11, 2024 , I remember what today anniversary as a civilians and a childhood eventful moment.

[@duanelinstrom4292]

Get our Insurance Commissioner on the phone, Steve. Tell him we need home ownership’s insurance. Thanks.😊

[@PCTC47]

Always love your comments.

[@calimangrower1590]

Quit passing the Puck insurance companies just don't want to pay

[@karen25041]

State Farm is also canceling long term home insurance customers.

[@courtneyhazelton5563]

Now, I'm just spitballing here but maybe, if PG&E, and some other seemingly immune major infrastructure concerns would maintain their equipment to a standard, there may be fewer fires. Crazy idea, huh? Notice that I didn't specify a level of standard. In recent years it has become glaringly obvious that there is NO maintenance standard The business community wants to conveniently blame "government" when it has been, in more than a few instances, that lack of maintenance which has caused major, destructive, lethal fires. "Costing" lives, as well as total loss property damage. Blame the bean counters and their playing the odds that litigation may cost less than regular maintenance.

[@WESTERN308]

Research proposition 103 passed in 1988.

[@paladinhill]

Steve, as I look back over the years, listening to your comments on TV and the youtube, I wish more and more that you would have been successful in your bid for POTUS. I think our country would be in much better shape had you sat in the Oval office. Thanks for another good explanation of the crisis in Cali.

[@wednesdayschild3627]

It isn't just California. Suburbanization is a mess.

[@presterjohn1697]

Trust the Rich. They want what's best for you and you better listen to them. Get rid of government and let the corporations run America.

[@RichFlemingRealtor]

Most woodlands in CA are owned by the Feds or private parties. If I recall correctly, less than 5% of the states wood lands are controlled by the state Typical Forbes anti-regulation rant. CA definitely has insurance regualtion problems, but the huge insurance companies' claims also have to be taken with a LOT of grains of salt.

[@cwr8618]

since you have the answers, why are insurance companies leaving the state and policies going up 10x

[@RichFlemingRealtor]

@@cwr8618 ... I don't have all the answers and DIDN'T claim to have all of the answers. Where did you get that from?

[@WildfireHomeHardening]

No one is talking about the state's role in the insurance problem is the cost to rebuild. First off is the cost of permitting. Every local jurisdiction is it's own fiefdom. A permit cost in in county could be triple in another. Some communities also have requirements that cost contractors additional time which gets passed along to homeowners. No one seems to be looking at the cost of all the legislation that is passed, which seem to be smart, ie. screens on gutters to keep flammable debris out. A good idea, but all these little things they require to protect us from ourselves, (think about the stupid gas can nozzles) cost money. Add them all up, and we can't afford to rebuild. If I had to rebuild my home today, I would have to add fire sprinklers, a HUGE cost. It's not just one thing, it's hundreds of things. Our legislators work full time. Texas is part time. California has too much time and they feel they have to pass laws just to pass laws. Well, they do have to pay back all the companies and corporations that got them elected I guess. Shameful

[@chipott3705]

What California is just starting to go thru, NJ went thru with auto insurance 20 years ago. Don’t be surprised when the major carriers announce they are pulling out of the state. Over regulation, price caps and Subsidy requirements, restrict companies from making even a slight profit. It’s not up to other states to subsidize CA.

[@jg1238]

😂 I have friends in Florida who can’t get insurance. It’s not about California

[@chipott3705]

@@jg1238 Florida’s issues have nothing to do with over regulation and everything to do with hurricanes.

[@SeanJ2A]

​Mother nature doesn't care about Politics, regulation or non. In the end insurance companies don't want to insure in Florida because it effects their bottom line.

[@e.r.6147]

@@chipott3705 do you think that also they have to deal with lawyers suing for too much over the hurricanes?

[@todossantosmusic9070]

You left out how poorly California manages its forests and blames the infernos on man made climate change.

[@spotlight1220]

Informative but no solutions.

[@mwatercress]

California politicians have spent years leveraging our fifth-largest economy in the world to influence other states. How long will we be a powerhouse when corporations and wealthy individuals want to divest? Investors are walking away from the largest hotel in SF over a loan that is less than half the value of the property in 2016 (Hilton Union Square and Parc 55). Office buildings are being listed at a fraction of their value in 2008. Elon Musk saved himself a fortune by moving to Texas. The state has had a long-term housing deficit and their response has been to punish the only ones who have dedicated resources to meeting the critical need in the state. Unfortunately, when their actions don't yield the desired result or make the problem worse, they do the same thing more vigorously. They find themselves in a hole and continue to dig.

[@Mario.alsanchez117]

You deal an insurance company. You deal many insurance companies.

[@dianascrimger284]

How can state farm reject a persons policy for complying with the law? The doctor said i could not drive so i did not drive because i could not legally pass the eye test required by the dmv!

[@dougbosworth8745]

The federally accredited corporately sponsored University graduates predominantly make up the voting demographics in California. In their infinite wisdom decided to actually voted for an insurance commissioner that never even existed .

[@Dozer44]

The Democrats have really f that state up

[@ivangonzalez-qb4tn]

The insurance companies are mad we are using a service we pay for…typical

[@elultimo102]

Parallel evolution---The indigenous Australians practiced forest management using controlled burns, called "the Burning Time." Native Americans did the same. Why are Europeans so averse to learning through the experience of generations, who have lived successfully under demanding conditions? Intelligently, Amundsen utilized the talents and methods of Inuits (Eskimos) with dog sleds to explore Antarctica.

[@alwilson8891]

Steve, thank you for your assessment. It is short and concise and easy to understand. I used it for a friend who is a homeowner in CA but now lives out of the US, and was mystified that their insurance was going to be terminated. Of course, your opinion seems to side with the industry. My counter balance is a quote by Gore Vidal, "The insurance companies are the piggy banks of the rich". My personal experience with insurance companies has not left me with a favorable taste in my mouth. They are primarily money oriented, and not service oriented. They are service oriented only to the degree that they have to. And now that has gone almost totally out the window. And also, what good thing can be said about the State of California government at this point???

[@WESTERN308]

Research proposition 103 passed in 1988.

[@wilburt57]

@@WESTERN308 RESEARCH NAIC CAPITAL MARKETS SPECIAL REPORT.

[@flashnmb1]

California regulations make it impossible to do business; leave, voters need to reap the consequences. Democratic Paradise!

[@wilburt57]

Can anyone in the insurance industry explain this: According to the National Association of Insurance Commissioners, the cash and invested assets of the insurance industry has grown to $8.5 trillion by 2022. This is an increase of 7% increase year over year. Additionally, the industry has seen its third consecutive year of 7% growth or greater. Just five years ago, the cash reserves were $2.5 trillion. That's $8 TRILLION in reserves, folks. Not only that, the industry is investing these reserves in LESS liquid assets (mortgages and equities) meaning they are LESS concerned about liquidity going forward. We are again being lied to by every person in the insurance industry when they cry poor over "losses." Next time they talk losses, ask them what about your GAINS? Like adding $500 BILLION to reserves each and every year?????? Just like banks, insurance companies are the largest money makers yet they cry poor, constantly. I can't even insure my business in CA for what it's worth. They continue to offer less coverage for more premium....while moaning about payouts.

[@QuietStormX]

Same with all 3 coasts. If not wild fires and rain and mud slides. It's Storms and wind from them.

[@jab2505]

State Farm is doing the same thing in Florida.

[@RedLineShortFilms]

We don't need insurance companies, Instead, we need to pool our resources and eliminate intermediaries who seek to generate profits. The rationale behind their existence and how it benefits us remains unclear. By having every Californian contribute to the state pool, the state would accumulate nearly 6 trillion dollars per year to distribute to individuals in the event of a natural calamity. In this scenario, claims cannot be denied as there is no involvement of profit-driven insurance entities.

[@DesertRat332]

I'm sorry, but politicians would see that big pot of money and they couldn't help but take it and spend it on something. Look at the lottery money. Remember how that was supposed to go to the schools. Yet teachers are still underpaid and schools make parents buy books and other school items that used to be supplied by the schools. The Feds pilfer the social security fund and when it gets bad enough they will dip into the federal employees retirement fund. But as always, they will say they are just going to "borrow" from it.

[@hondofitty]

good luck having that work

[@isaac.anthony]

@@hondofitty so you're an advocate for insurance companies driving record profits, when everyone else in the economy is barely paying the bills? That's why these insurance companies are leaving, they can't GOUGE consumers, like they are in Texas and other Republican controlled states. So they cry and want to leave, because their profits aren't RECORD highs in California, like they are elsewhere. Bootlicker much?

[@PS_____]

So, like... an insurance company... run by the state. Insurance is not a high margin business in general (ref. industry combined ratios) and governments are not particularly good at managing costs, process efficiency, or customer service. Insurance companies primarily grow through acquisitions because the underlying market is adequately addressed and the market grows at roughly the population growth rate. Actuarial data is largely syndicated, meaning that rates are largely reflective of risk across the board (just like a state run system would aim to do). The only difference between the current system and the proposed system would be a reduction in quality and increases in price. Also, how would a government run insurer manage float? Would it? Or would it be cash based? How would capital adequacy be measured?

[@isaac.anthony]

@@PS_____ the price is less than private insurers and you are making up fiction when you pretend insurance companies aren't making massive profits. so you're wrong all around, have a nice day!

[@NanaSunonX]

But we don’t purchase fire hazard insurance. What exactly is reason? Absolutely Not the one you are mentioning.

[@erich84502a]

Preexisting condition alert

[@atomsaber6223]

Leader: By law you need home insurance please provide your insurance information asap. Insurance companies: We no longer provide home insurance in California, sorry. Good Luck!

[@glennhopkins2643]

Snake Farm

[@wearesolarfarmers]

We then must cancel must have insurance laws. No on will be able be able to purchase insurance.

[@bender9222222222]

The way you describe for profit insurance sounds like a massive scam. The rate hikes are capped... is a bad thing? 😂 Stevie, come on. I know you dance for corperate America but who are you fooling, here?

[@isaac.anthony]

Steve, like all other MSM is from the point of a billionaire who thinks unregulated capitalism, and being able to GOUGE consumers for record profits is "fair play" these people are property owners who add nothing to the world, except to be crappy landlords.

[@peter7936]

Capping rate hikes is a bad thing when the risks they insure are going up and up. It's not just that there are more fires. It's also that construction costs have gone up about 30% since 2020.

[@wilburt57]

@@peter7936 then why have cash reserves and invested assets climbed 7% year over year for three years resulting in cash reserves of over $8 trillion? Up from $2.5 trillion just 5 years ago? Believing insurance companies is a bad thing if you want the truth.

[@PeterBlack-nl5hy]

@@wilburt57 Are those national figures? If so, they don't have much relevance to California. If California is profitable, why are companies leaving? No policy means no profit. Not writing only makes sense if a policy is likely to lead to a loss. BTW, many of the prices people are complaining about in California are way lower than I pay with a mutual company in Connecticut.

[@wilburt57]

@@PeterBlack-nl5hy they are profitable in CA, just not as profitable as they’d like. Leaving is dictated by the way the Ins. Commissioner runs the game. Only state in the country that dictates increase/decrease in rates. So it’s a power play to get it changed. Only way to raise rates by 30% is to leave and after 3 years they can return with higher premium requests. Either way, consumer loses and businesses are screwed. You may pay high premiums but your state doesn’t do insurance like CA.

[@donmckechnie9858]

Exactly, get rid of private insurance!!! Create a single payer public home and auto insurance so policy holders do not have to pay for agents on the golf course, highly paid executives, stockholders, and the billions spent on advertising. And Steve you are lying. Do you want to increase taxes to pay for "raking" the forest.

[@timkilpatrick9978]

I guess he has never seen Gavins hair. It should be worth having no insurance for the privilege of basking in his glow.

[@randyw6650]

Where did all that money go?

[@wilburt57]

The insurance industry has grown its cash and invested assets to over $8 Trillion (year end 2021) and have added $500 Billion each year since. They are moving those reserves into less liquid assets (mortgages and equities). So how is it that they say they can't "afford" to do business in CA? go to the National Association of Insurance Commissioners Capital Markets Special Report. They are very proud of this, yet cancel policies and exit states claiming POOR!!!!

[@blopez7052]

You are looking great Steve! Thanks for the great insight.

[@johnbradbury5111]

Just pull out California insurance companies see how those woke politicians in California make them beg you to come back. Politicians are becoming stupid

[@RedLineShortFilms]

We don't need insurance companies, Instead, we need to pool our resources and eliminate intermediaries who seek to generate profits. The rationale behind their existence and how it benefits us remains unclear. By having every Californian contribute to the state pool, the state would accumulate nearly 6 trillion dollars per year to distribute to individuals in the event of a natural calamity. In this scenario, claims cannot be denied as there is no involvement of profit-driven insurance entities.

[@isaac.anthony]

@@RedLineShortFilms We should also make PGE a publicly owned utility, considering they've been responsible for so many of our fires, that we taxpayers have had to bail them out! No more bailouts for failed corporations!!!

[@richardtidd2738]

Insurance companies need to make a profit to survive. They can see the writing on the wall. With HUGE social problems, looting, shoplifting, vandalism, and industry over-regulation in California, who can blame them for leaving? Go woke- go Broke.

[@MyOutdoorActivity]

keep voting democrats....

[@socalnsx]

Obviously this dude is in bed with the insurance mafia…. My car insurance premium just doubled from $3300 a year to $7400 !!!! No tickets or accidents

[@WESTERN308]

Research proposition 103 passed in 1988.

[@cwr8618]

@@WESTERN308 why are you issuing homework assignments to people. who are you?

[@WESTERN308]

@@cwr8618 Although you submitted your homework assignment, it was sent in after the deadline. As a result, your assignment will not be graded.

[@truthalonetriumphs6572]

How about no regulation?

[@Yappingman]

Damn you, Obama!

[@وأعدوالهم]

And do not consume one another's wealth unjustly or send it [in bribery] to the rulers in order that [they might aid] you [to] consume a portion of the wealth of the people in sin, while you are aware [it is unlawful]. Holy Quran, Chapter Baqara, Verse 188

[@David-fu4vi]

Democrats: "None of that matters. We've already got all your money and are replacing you as fast as you can leave. So FO. Thank you and, vote democrat! 😊." (I'd put lol but, it's not F-ing funny at all. It's true)

[@generator6946]

This is a comment.

[@robertforrester578]

How old are you Man?

[@UnkJo357]

No insurance…. They don’t get a mortgage.

[@mannyechaluce3814]

yup

[@mjblue84]

"You will own nothing and be happy."

[@halseyknox]

Always blame the government for sticking up for the people .....F...the insurance companies its all about money and shareholders .....go after the utilities that start these fires in the first place....oh yeah, did I already say its all about the money and shareholders??????

[@MrYorickJenkins]

"ceased selling insurances last year" NOT "has ceased selling insurances last year" In English the present perfect tense is not used in a sentence with a past denominator. Haha perhaps this is evidence of California's poor public school system. Native speakers working as journalists are not sure of the fundamentals of English grammar any more.

[@gorgeouslady5612]

Why do Billionaires! have to have Car Insurance? Can't they afford to buy! the other person a new car! and pay for all hospital bills if they get into a wreck?.

[@eldebtor6973]

Florida has it worse but Forbes won’t blame government 😅

[@velocityacoustics]

Yea? you can't control hurricanes, but you can control wildfires by removing decades of neglected underbrush from the forests and creating fire breaks, which california has not been doing.

[@ahsanmohammed1]

Good info Steve. Thank you. Please do covey to us true and accurate insights. Appreciated sir. FYI Readings much better. Excellent. However, for this one, perhaps five more practice readings would’ve made it even better. 7.5/10. Sorry. Thanks