A review of the fire insurance problem in California.

in #california13 days ago

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https://www.wsj.com/opinion/california-fires-los-angeles-insurance-regulation-premiums-risk-fair-victoria-roach-gavin-newsom-1306d0a1

More than these fires, that is a policy issue. When goverment effectively mandates that a company must spend more than it can earn, those companies will stop doing business. Insurance provision is not a charity nor an obligation (and even charities must bring in more than they spend, or they, too, will eventually go out of business).

Would eliminating California's insurance regulations cause fire insurance prices to increase, and become a burden on less wealthy people? Yes, but that's better than no insurance. And it would more properly price the true cost of living in Southern California, giving people more accurate price signals to imvotp into their decision-making.

Much of politics is about hiding costs from people, distorting price signals for feel-good reasons, but this just produces worse decision-making.

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Insurances increase their prices whenever they can, avoid to pay out and give "golden hndshakes" to the top next to a fat saving account. Most annoying (next to what mentioned) is the waste of money for commercoals and fake aid.



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