The Legislature to the rescue. Hi, I am from the government, and I am here to help. What could go wrong.
California wildfires
- Thread starter NY independent
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I'm thinking of all the insurance agents who saw the majority of their book-go up in flames. Most captive agents, write majority of policies in their metro area. Be prepared for a great exodus of people leaving CA. Because the fire risk and the years it will take to rebuild. I had a few HH move to my state after the Paradise Fires,mwhich were devastating, but a much smaller # of people were involved.
I'm a California independent agent and broker. This event is the most catastrophic I've seen and it's not over.
Prediction on insurance market conditions - companies have pretty much not done much new business since July 2023. FAIR Plan and surplus lines have picked up the slack. Markets, including E&S will tighten up even more and the FAIR Plan will have to deal with solvency issues. The state is in a budget deficit and has no ability to prop up the FAIR Plan so I see the feds having to be called in. A permanent solution will take years to implement because we have feckless state level leadership.
Prediction on insurance market conditions - companies have pretty much not done much new business since July 2023. FAIR Plan and surplus lines have picked up the slack. Markets, including E&S will tighten up even more and the FAIR Plan will have to deal with solvency issues. The state is in a budget deficit and has no ability to prop up the FAIR Plan so I see the feds having to be called in. A permanent solution will take years to implement because we have feckless state level leadership.
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One of the great ironic twists to this incredible disaster is that the only thing harder to source in California than a High End Homeowners Policy in a wildfire area is a High End Builders Risk policy in a wildfire area.
What happens to your book of business ? In 1 yr every insurer left standing will exit the ca market . What will all these 1000's of Ca P@c agents do ? When state farm and Allstate existed the Ca mkt in last 1-2 yrs what did all these capitive agents do ? Unfortunately i can see this happening in other lines of ins as so many carriers struggling to make money
No expert but yes i read a lot and have agent friends in the P@C business . Happened in Fla too with State Farm pulling out of homeowners market maybe 12 yrs ago .WOW! DonP is a P&C expert too!! The awesomeness just keeps coming! Top Medicare Broker, world renowned Day Trader, top FE broker and an expert in the California P&C market!
Right, then they came back. Almost like it's some kind of a business cycle or something...
Unfortunately that doesn't work for a captive agent . He can't wait 3-5 yrs for his carrier to start offering policys again .And even an independent agent in Ca can't wait 2 yrs for the dust to settle .
Weird, I wonder what agents that have been in the business for 30+ years do during hard markets then?...
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