California officials announced Wednesday, December 18, 2019, that a new law passed in the state temporarily stopping insurance companies from dropping customers in recently affected wildfire areas. The new law protects more than a million homes in these areas. Almost 1 Million Affected by Wildfires This comes as welcomed news to more than 800,000 residents… Continue reading How Does California’s New FAIR Law Protect Vulnerable Residents?
Tag: CA wildfires
PG&E, California Agree to $1.68 Billion Settlement for Wildfires
The California Public Utilities Commission has proposed a $1.68 billion settlement with PG&E Corp. for the role the utility company played in igniting a series of deadly wildfires in 2017 and 2018 that killed more than 100 people. Under the terms of the settlement included in a filing by the regulator, the company would be… Continue reading PG&E, California Agree to $1.68 Billion Settlement for Wildfires
California ‘Insurer of Last Resort’ Sues the State as Crisis Deepens in Wildfire Zones
With thousands of rural Californians losing their homeowners’ insurance because of wildfire risks, the state’s “insurer of last resort” sued its regulator Friday, seeking to block his order requiring the insurer to broaden its coverage. The lawsuit, by the industry-backed California FAIR Plan against Insurance Commissioner Ricardo Lara, is the latest twist in a deepening… Continue reading California ‘Insurer of Last Resort’ Sues the State as Crisis Deepens in Wildfire Zones
PG&E Charges to Swell to $25 Billion After Wildfire Settlement
PG&E Corp. expects to take a fourth-quarter charge of $4.9 billion in connection with a new $13.5 billion deal to settle claims from wildfire victims, the company disclosed in a securities filing Monday. The new charge, which PG&E expects to take by year’s end, would raise the company’s total recorded fire-related charges to over $25… Continue reading PG&E Charges to Swell to $25 Billion After Wildfire Settlement
California Bans Insurers from Dropping Policies in Fire-Ravaged Areas
Responding to several years of unprecedented fires across California, regulators on Thursday imposed a one-year moratorium banning insurers from dropping policies for homeowners in wildfire-ravaged areas of the state. The move comes amid an exodus of some insurers in communities hard hit by fires, forcing some homeowners to take plans that provide less coverage, sometimes… Continue reading California Bans Insurers from Dropping Policies in Fire-Ravaged Areas
California Governor Questions $11B PG&E Insurance Deal
California Gov. Gavin Newsom questioned PG&E Corp.’s $11 billion settlement proposal for insurance losses tied to wildfires and said it could derail the utility’s bankruptcy exit strategy. In a court filing on Saturday, the Democratic governor raised several objections to the proposed deal with insurance creditors after it emerged as a sticking point in negotiations… Continue reading California Governor Questions $11B PG&E Insurance Deal
2019 California Wildfires Signal ‘New Normal’ for Insurers: AM Best
Given the proliferation of wildfire losses in California, AM Best believes insurers will continue to re-examine this peril, and likely make adjustments to risk appetites, capital management strategies and reinsurance partnerships, according to a new AM Best commentary. Enterprise risk management practices and risk-scoring models used by catastrophe modeling firms also likely need to become… Continue reading 2019 California Wildfires Signal ‘New Normal’ for Insurers: AM Best
Sonoma County Fire Explodes to 10,000 Acres, Prompting Additional Evacuations
Pushed by wind gusts that topped 70 mph, a monster brush fire spread rapidly overnight in a rural section of Sonoma County, California, threatening communities and forcing evacuations. The Kincade fire is an estimated 10,000 acres and has no containment, according to the California Department of Forestry and Fire Protection and local officials. It is… Continue reading Sonoma County Fire Explodes to 10,000 Acres, Prompting Additional Evacuations
Is Wildfire Risk Turning California Into A ‘Third World’ State?
The darkened traffic signals, long lines for gasoline and the sight of senior citizens laboring to recharge their medical devices have forced the world’s fifth largest economy to confront its vulnerability to wildfires — while exposing Pacific Gas and Electric Co. to withering criticism about its aging power equipment. For the seventh time in less… Continue reading Is Wildfire Risk Turning California Into A ‘Third World’ State?
No One Can Agree on How to Price California Home Insurance for Wildfires
Finding home insurance in wildfire-prone parts of California is getting more difficult and more expensive. No one can agree on how to make it any easier. A new flashpoint is the use of algorithmic models for predicting catastrophe losses. Insurers have long used these models to project losses from natural disasters but insurers, homeowners and… Continue reading No One Can Agree on How to Price California Home Insurance for Wildfires