Jamie Moraga, Franklin Revere
NO: Insurers have and will continue to leave California, citing profitability issues and high-risk factors. Recent reforms sparked optimism, but it may not be enough given significant losses from the L.A. wildfires, which is anticipated to be in the billions. The reforms are a step forward, but more should be done to retain insurers and alleviate homeowner premium hikes, policy cancellations, and coverage denials. Sadly, L.A. wildfire victims are likely to face further hardship navigating complex insurance claims.
Haney Hong, San Diego County Taxpayers Association
NO: No, which is just so unfortunate. With more insurers leaving, we only accelerate the trends in growing inequality, poverty, and homelessness in our state that seem to be the result of decades of policy arrogance by our public leaders. We’ve overengineered our markets and our communities, and it’s time to exercise some humility and undo what’s causing insurers – and businesses and people, too, by the way – to leave the state.
Phil Blair, Manpower
YES: It is certainly a good start. We need to keep fire insurance, like car insurance, a private sector product. Insurers need to have the flexibility to adjust their rates according to their risk. Is this the time to consider mandated home fire insurance, like we do car insurance?
Gary London, London Moeder Advisors
YES: There is nothing like a disaster to achieve reform. The slow movement to insurance reform will rapidly pick up and insurers will figure out a way to stay in business in our huge state market. But rates will rise. As an aside, I do not expect many of these homeowners to rebuild. From a strictly economic perspective, the better bargain might be to sell their lots, which will be more valuable than the home.