California fires spark insurance crisis, projected losses up to $150B

Five wildfires are still burning in Southern California, spreading to nearly 30,000 acres and destroying over 10,000 homes and businesses. While losses from the fires are expected to reach $150 billion, according to Accuweather, these events are presenting a serious challenge for the insurance industry, particularly homeowners insurance in the region. CFRA Equity Research Vice President Cathy Seifert joins Morning Brief to uncover the impact this natural disaster event could pose for the broader insurance industry; major insurance stocks like Allstate (ALL), the Travelers Companies (TRV), Chubb (CB), Mercury (MCY), and American International Group (AIG) have been falling amid the increasing severity of the fires. “The insurance industry does have the capacity to address these claims. The issue, though, is a crisis of availability for homeowners in California,” she says, highlighting the distinction between economic losses and insured losses. Seifert transitions into the challenges in insurance availability due to climate change and regulatory shifts, especially in California. “Well, climate change, which we have an incoming administration that doesn't want to address, is going to increase or decrease the availability of insurance, increase the crisis of availability, the protection gap, and ultimately, the cost of climate change are inflationary as it relates to the California insurance market, interestingly enough,” she explains.
#youtube #wildfire #california

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[sigurdmellqvist]

Climate change did not make the fire hydrants go dry, human incompetence did.

[frankcoffey]

What did insurance companies do with all the money they collected all these years? If they don't have it it's their own fault.

[edbrophy]

And these wildfire municipalities lost all that incoming massive tax revenue from all gone homes!

[vladdracul]

Use excessive amount of land and precious materials to build a McMansion out of fuel with no fire protection, surround it with extra fuel because you don't want to see your neighbors, build your wood house extra large to display your wealth, complain about all those awful homeless people, get a massive insurance claim, build another worthless McMansion go to Starbucks rinse and repeat.

[whlawson]

For rebuilding built a 1000 ton of firewater tank for every cluster of 500 homes. Every home having a pool needs to have an engine operated water pump good for 100gpm at 5barg pressure and tied to sprinklers. No?.

[Mustafailknur-bk]

ADX is flying under the radar now, but it won’t stay there for long. Glad I got in early!

[rander]

She got her little dig in on Trump, but she had nothing to say about the complete lack of mitigating efforts on the part of California's politicians to maintain water levels in storage areas to fight fires, to remove the vast accumulation of bone-dry vegetation at residences, in canyons, and on hillsides, and to halt fires at homeless encampments. Those politicians knew full well it had been dry for eight months and that the Santa Ana winds were coming. This woman is very one-sided.

[lu]

The state failed to manage their forest. This isnt new.

[HasanMehmet-we]

Adaxum’s focus on real-world solutions sets it apart. Secured my position during the presale.

[ANTHONYArmenta-dn]

Adaxum is a top contender for best altcoin project this year. Joined the presale early!

[hondajacka]

Get out of LA. Not worth living htere.

[MansurAysel]

Just joined the Adaxum presale—this is a project that stands out from the crowd.

[HOSEAHendricks]

ADX has a unique angle with its E-commerce focus. Glad I got in during the presale.

[ANTONIAHobbs-de]

Adaxum’s presale is gaining momentum, and I’m thrilled to be part of it.

[AhmetUnal-ml]

Whales are taking notice of Adaxum, and I’m glad I joined the presale before the rush.

[ryanwalters]

Blame the insurance companies for the complete incompetence of California. Building mcMansions fire prone areas is just stupid.

If they were forced to pay the real cost, they would build more affordable housing.

this area is for the super rich in the rest of America should not finance them.

[Alexandria.Washington]

The “New” California waterfront will be built like a “Miami-Style” Mega Smart city with multiple hi-rise beach front hotels, resorts and condos (from $5-50+million each) including shopping malls, restaurants and a smart rail. Malibu, Santa Monica and Palisades are too enclosed for the rich and famous Hollywood people ONLY.

Why get $40+million for one old beach house when you can get 10X times ($40+billion) that amount for a mega multi-story hi-rise condo building.

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Glad I got into Adaxum during the presale. The project has some promising elements.

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Happy with my decision to join the Adaxum presale. Let’s see how it performs in the long run.

[GamzeNur-gn]

Took a measured position in Adaxum. Hoping the project delivers on its promises.