The insurance industry believes in climate change no matter what the MAGA says to their cult.
— American Patrick (@americapatrick100.bsky.social) January 9, 2025 at 12:26 PM
These BlueSky posts are about State Farm pulling out from parts of the Southern California property insurance market over the summer.
I am betting State Farm’s actuaries and risk management teams looked at their numbers and basically said that no matter the premium level charged, losses would be greater than premiums and overhead in these areas do to increased wildfire risk so the best option for the company was to get the hell out of the region with substantial notice to their former policy holders.
That is just my bet.
Actuaries rule the world over a long enough time horizon and as the world’s climate changes due to very predictable mechanisms, actuaries will be making very unpopular decisions as they attempt to balance future premiums to future obligations. Their choices are to cover less, charge more or run like hell.
And the actuaries shall inherit the EarthPost + Comments (136)






