Published:
Jun 12, 2023
Author:
Sarah Parsons Wolter
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In case you’ve missed the yellow haze on the news – or IRL if you were unlucky enough to be anywhere close to FTC HQ – over the past few days, insurers are making sure that homeowners take note.
AIG is the latest insurer to join State Farm and Allstate in pulling out of fire-prone California. In their absence, residents who have lost their homes have been left with the option to purchase a policy from the California FAIR Plan, a private high-risk pool that was established by state law.
But insurers say this change is necessary to protect business health – an understandable concern after 2020-2022 marked a record stretch of $275b of insured damages, while reinsurers raised rates by more than 200% due to the war in Ukraine and severe hurricanes.
California is unfortunately just the beginning. Challenges in Florida are already acute, with 47 local property insurance businesses going under within the past 13 months. As more states become uninsurable, what are the repercussions, and more importantly – what’s the solution?
Portfolio News
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Where The Wild(fires) Are
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Select Financings
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Insify - Amsterdam based insurance startup for small and medium-sized enterprises raised $10.7m in growth funding led by Munich Re Ventures. Read more
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