“And since there’s still not the ability for people to shop around for other options, what are they going to do but pay that higher rate? But I think that it’s probably going to show pretty quickly that it’s necessary to keep State Farm from literally going insolvent.”
Seems like you conveniently forgot another option here? Seize the fucking company. It belongs to California now.
Well, you’re going to piss off the policyholders then. State Farm is a mutual insurance company. It’s owned by the policyholders. It’s essentially a non-profit, since profits go to reduce premiums or pay dividends to the policyholders.
The thing is, the company isn’t turning a profit. When what fills the cup doesn’t match the hole in the bottom, at some point the cup will be empty. California has mismanaged the wilderness areas and allowed development without concern for potential fire danger. Climate change, high fuel loads after decades of suppressing natural fires, improperly maintained electrical infrastructure, and a lack of “Fire Wise” education are all contributing to huge wildfires and high property loss rates.
If California were to seize every insurance company in the state, they would quickly be in the same predicament - needing to raise premiums to cover the losses.
The only real solution is to reduce the risk. That’s why the NFPA came up with local Fire Safe Councils. We educate the homeowners about how to make our homes resistant to wildfire damage. Using grant money, we reduce the fire danger by clearing hazardous undergrowth. We provide resources for homeowners, like chipping programs, matching funds for tree removal, and other assistance in maintaining defensible space. We have successfully lobbied for insurance discounts when homeowners complete risk reduction measures.
Seems like you conveniently forgot another option here? Seize the fucking company. It belongs to California now.
Well, you’re going to piss off the policyholders then. State Farm is a mutual insurance company. It’s owned by the policyholders. It’s essentially a non-profit, since profits go to reduce premiums or pay dividends to the policyholders.
The thing is, the company isn’t turning a profit. When what fills the cup doesn’t match the hole in the bottom, at some point the cup will be empty. California has mismanaged the wilderness areas and allowed development without concern for potential fire danger. Climate change, high fuel loads after decades of suppressing natural fires, improperly maintained electrical infrastructure, and a lack of “Fire Wise” education are all contributing to huge wildfires and high property loss rates.
If California were to seize every insurance company in the state, they would quickly be in the same predicament - needing to raise premiums to cover the losses.
The only real solution is to reduce the risk. That’s why the NFPA came up with local Fire Safe Councils. We educate the homeowners about how to make our homes resistant to wildfire damage. Using grant money, we reduce the fire danger by clearing hazardous undergrowth. We provide resources for homeowners, like chipping programs, matching funds for tree removal, and other assistance in maintaining defensible space. We have successfully lobbied for insurance discounts when homeowners complete risk reduction measures.
PG&G isn’t public, they are not maintaining tree lines, lots of this is their fault.
Idk. I feel like government is bad a running one company but is good at scaling up.
I’d rather see ca offer a good baseline insurance plan. That or offer fire protection like they do for flood and earthquake.
Assuming the financial report about State Farm’s insolvency in California is true, how do you think this will help?
Lets play out your scenario:
What are you advocating for differently than the scenario above? Where is the needed money going to come from to:
Where is that money?