Peter GleickMay 28, 2023

Climate change and extreme events are explicitly mentioned as a reason insurance companies are withdrawing from markets with skyrocketing risks.
Do you still deny #climate change, or don't want to act to address it?
The market is coming for you.

#climatechange

https://www.latimes.com/california/story/2023-05-27/state-farm-is-no-longer-accepting-property-insurance-applications-in-california?s=09

State Farm not accepting property insurance applications

The company blames 'increases in construction costs outpacing inflation, rapidly growing catastrophe exposure and a challenging reinsurance market.'

Los Angeles Times
Show threadkurtsh

@petergleick Meanwhile, State Farm has no such freeze in the nightmare known as Florida. 18,000+ new policies in hurricane country in 2022.

I'm all for recognizing & taking action against climate change but I believe State Farm's actions were more about CA State legislation mandating *discounts for high risk property* that State Farm's actuaries said 'no' to.

If State Farm were allowed to set rates that met the risk, my bet is there'd be no such freeze.
https://www.floridarealtors.org/news-media/news-articles/2023/04/which-fla-property-insurers-still-accept-clients

Which Fla. Property Insurers Still Accept Clients?

An analysis of state data suggests legislative reforms that reduce litigation risks for insurers encouraged some carriers to expand their presence in the state.

Florida Realtors
May 29, 2023 at 12:21amYuito