Fixing California’s Growing Insurance Crisis

Source: Independent Institute
by Adam Summers

“California’s insurance crisis largely stems from the inability of insurers to raise prices to more accurately reflect their risks, particularly as the number and cost of natural disasters such as wildfires has increased in recent years. The state’s price controls and delays in making decisions on rate increases have made it impossible even for major insurance companies to do business in California. The crisis will only abate when California stops making it unprofitable or too risky for insurers to issue policies in the state.” (04/01/24)