Sometimes the risk is too great for insurance companies to offer insurnce

When that happens the impact can appear cold and heartless but it’s also becoming a more common reality as insurance companies are impacted more often by events that require massive e payouts to thousands of victims.
That doesn’t mean that choosing not to pay out to insured victims is the right approach, it means that insurance companies need to re assess how they evaluate the increased risk and how that will impact future payouts.

This is not just a problem for California but a problem that Insurance companies around the world are having to deal with.
https://amp.cnn.com/cnn/2025/01/09/business/california-wildfires-homeowners-insurance

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whowasthatmaskedman · 70-79, M

Insurance is betting under another name. The company figures the odds and assigns a price at which it will take the bet. Some bets arent worth taking..In the case of houses, there is an argument to be made that if a building permit is to be issued, either the owner signs off as accepting all risks or they find a company and agree to the price... But in the end a fire leaves the land intact. Coastal flooding and erosion dont and they are more predictable. There an argument can be made about whether the permit should be issued..😷

justanothername · 51-55, M

@whowasthatmaskedman Every insurance company is having to reassess what is insurance and what isn’t.

whowasthatmaskedman · 70-79, M

@justanothername I agree. For different reasons, the same can be said of all corporations. An early example being GE, who used to make stuff. Now makes their money out of financing people buying stuff. Times change and the smart people change with them..😷

trollslayer · 46-50, M

Gee, didn’t the climate change folks warn us of this about two decades ago?

whowasthatmaskedman · 70-79, M

@trollslayer Yeah.. But global warming doesnt happen in America. They've got freedom and guns..😷

trollslayer · 46-50, M

@whowasthatmaskedman and expensive insurance.

whowasthatmaskedman · 70-79, M

@trollslayer Look at the shareholder value. The executive packages and political donations and you can see why,,😷

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