Tag: California insurance industry

Is a homeowners insurance crisis heading to California?

Marc
Insurance crisis - Homeowners insurance

Louisiana and Florida area already scrambling to keep their industries alive, but is California next? As premiums have been rapidly climbing in various parts of the industry in California, experts are starting to wonder if it will be the next state facing a homeowners insurance crisis. State legislators are pushing Commissioner Ricardo Lara to take action to support residents. Condominium policy premiums have been climbing particularly fast in the state. A number of state legislators have written to Insurance Commissioner Ricardo Lara in a push to take action to support…

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Appeals court shuts down California home insurance ruling

H. Cutner
California home insurance - Ruling

Consumer advocates say they’ll be bringing the case to the California Supreme Court. A California home insurance ruling has been overturned in appeals court, but consumer advocates say they’ll take the case to the state supreme court to reverse that decision. Consumer advocates said the ruling undermines the ability of the state to order billions in refunds. The state appeals court in San Diego rejected a 2016 finding from the state insurance commissioner, which found that a subsidiary of State Farm was overcharging on its California home insurance rates. The…

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California workers’ compensation Q3 insurance rate cuts get the nod

Marc
California workers compensation

The state has given its approval for the largest rate reductions of any US state. California workers compensation insurance rates have received their official approval, reducing them more than any other state in the third quarter. All 10 of the most notable rate reductions within that quarter received state approval. The announcement was initially made by an S&P Global Market Intelligence analysis. These California workers’ compensation rate cuts followed September 1’s reduction of the 1.41 percent pure premium benchmark issued by the state Department of Insurance. The rate reduction that…

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Will the California Department of Insurance report recreate the industry?

Logan B.
California Department of Insurance - Climate Change California

Since August, the state has faced record levels of rain, drought, and wildfires. The California Department of Insurance is taking on climate change and its impact on the industry in the state as it faces challenges increasing in frequency and intensity. The extremes that are regularly affecting the state have reached a point that many people can’t afford coverage. Residents and the businesses are reaching the point that they cannot afford the high premiums their insurers must charge to reflect the risk, and the state can’t afford to have a…

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State of California takes over control of former Berkshire insurance unit

G. Turner
Berkshire Insurance Unit - Warren Buffett of Berkshire Hathaway

The Department of Insurance said that it never gave its approval to the sale of the company. The California Department of Insurance have seized a former Berkshire insurance unit. The regulators claim that the sale of California Insurance Co. was in violation of state regulations. This is the latest step in the ongoing controversy regarding the sale of the unit. Earlier this week, the California Department of Insurance said that it had not given its approval to the sale of the Berkshire insurance unit with Applied Underwriters, a workers’ compensation…

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Fossil fuel underwriting disclosure petition rejected by commissioner on Earth Day

Logan B.
Fossil fuel underwriting - Chimney

California Insurance Commissioner Ricardo Lara has turned down the recent move by activists. Activists may have thought that they had Earth Day on their side when California Insurance Commissioner Ricardo Lara considered the fossil fuel underwriting disclosure petition. However, Lara rejected the petition urging him to implement the new regulations over insurance companies. Commissioner Lara underscored climate change as a top priority as a part of his election platform. The petition would have required insurance companies into fossil fuel underwriting disclosure. That is, they would need to disclose the fossil…

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California insurance industry will face more wildfire losses in 2018

Logan B.
California Insurance Industry - Wildfires

A new Moody’s report shows that insurance companies will endure more wildfire losses this year. The California insurance industry isn’t getting a year off from wildfire losses after facing a costly year in 2017. A new Moody’s Investors Service Inc. report showed that despite current losses, there will likely still be another major wildfire loss event this year. The Carr wildfire in California has caused about an estimated $1.5 billion in insured losses. After the California insurance industry copes with the $1.5 billion in losses likely already caused by the…

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