Many California homeowners are concerned about their home insurance, and that anxiety ratcheted up when State Farm requested one of its biggest rate increases ever.
State Farm of California is at risk of insolvency due to the risks associated with home owners insurance there. This has been coming for decades and other insurers have even put multiyear pauses on issuing new policies in the past.
Do the insurance companies shield themselves by dividing into regional/state zones?
Edit: also, because it seems it’d be safer to balance risk v reward across the whole country. (They also invest insurance money in the stock market where most of their profit comes from.) Although, I suppose it’d be easier to grift states of their money when it looks like a subsidiary is failing rather than just looking at the whole balance sheet instead.
State Farm of California is at risk of insolvency due to the risks associated with home owners insurance there. This has been coming for decades and other insurers have even put multiyear pauses on issuing new policies in the past.
Do the insurance companies shield themselves by dividing into regional/state zones?
Edit: also, because it seems it’d be safer to balance risk v reward across the whole country. (They also invest insurance money in the stock market where most of their profit comes from.) Although, I suppose it’d be easier to grift states of their money when it looks like a subsidiary is failing rather than just looking at the whole balance sheet instead.