“With climate change fueling California’s devastating fires, I am taking action to bring down the risk of losing your home in a wildfire and losing your insurance to a non-renewal.” I will be waiting for this one, climate change will NOT change over night, despite what some seem to think, and rates will not only go up, but those offering coverage will dwindle to almost zero. Already getting set for a tough renewal cycle after the first of the year, hold on, here it comes!!
So exactly what can the DOI do to prevent forest fires? Interference from the DOI will lead to a steep hardening of market with tremendous rate increases. Why hold meaningless hearings on this issue. The problem is forest management. Lets start with that!
The challenge is that Department is too restrictive. An open market might raise rates for some in the short term, but enable more admitted carriers into the market. Currently, restrictions on price changes and coverage revisions for admitted carriers along with the long process of gaining approval for any changes reduce the choices for many homeowners living in fire prone areas. The only choice they may have is a policy from an E&S carrier with reduced coverage and high rates.
Forest management and climate change are very long range problems that will take many years to resolve. I would ask that the Department allow a free market strategy to allow many carriers to compete for business. It will minimize price and maximize availability of the homeowners product.
While I would like to see some consistency in fire hardening standards, the department already tried that with replacement cost analysis. Nice idea, not real hopeful on more regulation being a solution.
Lara’s comments on this issue up to this point are a clear example of how in over his head he is when it comes to insurance. He’s obviously ignorant to how the industry and simple insurance really works, using this as a stepping stone to try and gain votes for his next position. Open market and fair competition are the best regulators available but that won’t contribute to the ridiculously expense-loaded and over-regulated DOI and Consumer Watchdog. But don’t worry, it all ends up in the consumer’s tax dollar or insurance premium in the end. That wolf in sheep’s clothing pretending to protect the consumer is exactly who is driving up premiums and limiting options. The industry is dying to help but they can’t allow greed and blindness to drive the bus. 2022 can’t come fast enough.
“With climate change fueling California’s devastating fires, I am taking action to bring down the risk of losing your home in a wildfire and losing your insurance to a non-renewal.” I will be waiting for this one, climate change will NOT change over night, despite what some seem to think, and rates will not only go up, but those offering coverage will dwindle to almost zero. Already getting set for a tough renewal cycle after the first of the year, hold on, here it comes!!
So exactly what can the DOI do to prevent forest fires? Interference from the DOI will lead to a steep hardening of market with tremendous rate increases. Why hold meaningless hearings on this issue. The problem is forest management. Lets start with that!
The challenge is that Department is too restrictive. An open market might raise rates for some in the short term, but enable more admitted carriers into the market. Currently, restrictions on price changes and coverage revisions for admitted carriers along with the long process of gaining approval for any changes reduce the choices for many homeowners living in fire prone areas. The only choice they may have is a policy from an E&S carrier with reduced coverage and high rates.
Forest management and climate change are very long range problems that will take many years to resolve. I would ask that the Department allow a free market strategy to allow many carriers to compete for business. It will minimize price and maximize availability of the homeowners product.
While I would like to see some consistency in fire hardening standards, the department already tried that with replacement cost analysis. Nice idea, not real hopeful on more regulation being a solution.
Lara’s comments on this issue up to this point are a clear example of how in over his head he is when it comes to insurance. He’s obviously ignorant to how the industry and simple insurance really works, using this as a stepping stone to try and gain votes for his next position. Open market and fair competition are the best regulators available but that won’t contribute to the ridiculously expense-loaded and over-regulated DOI and Consumer Watchdog. But don’t worry, it all ends up in the consumer’s tax dollar or insurance premium in the end. That wolf in sheep’s clothing pretending to protect the consumer is exactly who is driving up premiums and limiting options. The industry is dying to help but they can’t allow greed and blindness to drive the bus. 2022 can’t come fast enough.