A New 'Golden' Opportunity for Liberals

Politics
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Missed out on the opportunity to buy a fast food franchise in California? Kicking yourself for missing the boat on that one?

I’ve got an even better one for you.

Right now, in California, there are virtually no companies selling property insurance in the state.

You heard that right, it’s a wide open market with only the State government as your competition. You could walk right on in, start your own property insurance company and have a virtual monopoly on property insurance in the largest state in the Union!

That sounds like a recipe for success to me.

Who among our esteemed liberals will 'Dare to be Great!"?

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I would think some wealthy con would jump at the chance…with climate change being a hoax, there is nothing to worry about.

There is money to be made! (or not)

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Why do you think insurance companies aren’t insuring property in CA?

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Why wouldn’t you? It’s a virtual monopoly.

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Probably because the government of CA won’t let them charge the same rates their own insurance plan does, ensuring their demise?

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It’s funny you should bring this up - because the state facing the biggrst property insurance crisis is the now deep red Florida, with average costs around 3-4 times higher than California.

The state will be the only carrier in Florida long before it happens in California.

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Florida’s insurance market is pretty wide open, too. And for the same reasons as California’s.

Knock yourself out. You seem to know more than the insurance companies.

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There are less companies offering property insurance in Florida than there are in California.

Is it because of the government there, too?

Or could it be something else those two states have in common?

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Feel free to start one there too…it would be like giving DeSantis a finger in his own backyard.

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:rofl:

What?

I don’t think you’ve thought this all the way through.

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11

Thought he had a winner…

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I don’t get this. Companies are pulling out because of wildfire and storm surge costs, but liberals?

What about Florida?

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A thread so lame, he had to post it twice

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Why do they insure anywhere? Are you ready? It’s “profitable”. When it isn’t, they don’t.

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…and then came hurricane milton.

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California has one of the most heavily regulated insurance markets in the country.

  • All rate increases must be approved by an elected statewide commissioner (like 3 wolves and a sheep voting on what to have for dinner),
  • the commissioner must determine that the rate increase is not “discriminatory,” (this, in a state where maple syrup is racist, cops are racist, a lack of cops is racist etc.)
  • insurers are not allowed to consider a home’s proximity to areas likely to be impacted by wildfire
  • the commissioner must determine, using whatever loopy criteria he wishes, that the company is not profiting more than 10% (since 1950 the avg S&P return has been 11.48% so by definition a company has be a loser that would be better off closing its doors and investing in index funds)
    .
    .
    .
    In short, California has a complex scheme amounting to a de facto price cap on insurance rates. That’s why insurers leave.
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Try buying fire, mud-slides or earthquake ins. in CA.
Good luck.

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Homeowners AND auto insurance is crazy here.
Oh, you can get insured and pay through the teeth. For obvious reasons the insurance companies have requirements and inspections before they’ll approve a policy. We bought 15 years ago, our Home ins was quadruple what we were paying in Maryland. When we finally completely relocated during the Covid experience and sold off everything up north, insuring the vehicles, motorcycles? Well let’s just say that “retirement job” driving a school bus helps ease the pain. If you shop around you can save 30-40% on auto. Some info on why it’s so high:

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Did this analogy makes sense? How is a burecrat the wolf? Is he getting paid by someone if he lessens the rate of increase?

What is the exact point of that comparison

Insurance companies make only a portion of their profit through premiums.

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It’s like a bunch of people voting on “how much should evil corporations be able to charge me, as much as I want, or as much as they want?”

The fact that they actually elect an intermediary does not change that.

That is why rent controls, gas price controls and pretty much every other price control scheme fails in the long term. California insurance laws amount to a complex price control scheme.

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