the basic elephant in the room is that in the years 2017, 2018 and 2020.. there were unprecedented losses due to fire.
The right way to look at this negotiation.. a power-play between goliaths.. is that losses occurred on a scale and severity that no one predicted.. now, years later the markets are trying to find a way to do business in insurance
No, the elephant in the room is that in many states, including CA, insurance companies are severely limited at how much they can change their rates and what factors they can to determine risk/premiums.
Edit: I think there has been a number of comments from the big underwriters that they are unable to underwrite risk properly. This is not just a CA problem either, Florida is also a huge issue.
is that losses occurred on a scale and severity that no one predicted
The house made some bad bets, the players “won” a few hands, and now the house is backing those players off while they figure out how to rig the game again.
Comments
the basic elephant in the room is that in the years 2017, 2018 and 2020.. there were unprecedented losses due to fire.
The right way to look at this negotiation.. a power-play between goliaths.. is that losses occurred on a scale and severity that no one predicted.. now, years later the markets are trying to find a way to do business in insurance
No, the elephant in the room is that in many states, including CA, insurance companies are severely limited at how much they can change their rates and what factors they can to determine risk/premiums.
Edit: I think there has been a number of comments from the big underwriters that they are unable to underwrite risk properly. This is not just a CA problem either, Florida is also a huge issue.
The house made some bad bets, the players “won” a few hands, and now the house is backing those players off while they figure out how to rig the game again.