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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Wireman · 31-35, M

especially if they know beforehand.

whowasthatmaskedman · 70-79, M

@Wireman The whole point of a corporate insurer is that they MUST know beforehand. They calculate the odds very carefully.😷

Wireman · 31-35, M

@whowasthatmaskedman these odds are very odd at times.

whowasthatmaskedman · 70-79, M

@Wireman Yes.. But follow my baby steps. Statistically. if you have a million people, you can calculate exactly how many will have their houses burn down in a given year. Just look at the average for the last 20 years and so a little magic called standard deviation. The same sort of calculations tell you hown much you are going to have to pay out to fix those properties. So now you know how much to charge each person so you come out in front.. Simple..
Samll adjustments are made to allow for fire prone areas or vulnerable buildings.. And bigger adjustments are made when the board screws up and borrows a $h*t load of money for a bad takeover bid and wants to reward itself with bonuses all round..😷

Wireman · 31-35, M

@whowasthatmaskedman calculations are what they do best, and adjusting the premies accordingly. That is their business. But just cancell all, amazing.

whowasthatmaskedman · 70-79, M

@Wireman I agree. It does make you think that whatever risk we are talking about, those dwellings had no business being there in the first place..😷

Wireman · 31-35, M

@whowasthatmaskedman I don't have that much knowledge on the area, so I will rather not commemt on that.