Beyond the Buildings How Will Property Data Help Manage the California Insurance Crisis?
Home insurance is a critical consideration when applying for a mortgage. Without insurance, it’s exceedingly difficult to purchase a property. However, with climate change influencing weather patterns and contributing to the increasing severity of natural disasters, some insurers are reassessing their coverage to better manage their risk.
Insurance risk management is a topic that has cropped up in several U.S. states. This summer, Allstate and State Farm announced that they would no longer write new policies in California and indicated that the frequency and intensity of natural disasters contributed to their decision.
What drove two of the largest insurers in the U.S. to make this decision? How can regulators help manage risk for insurers, carriers and homeowners?
In this episode of Core Conversations, host Maiclaire Bolton Smith sits down with Senior Product Manager Jamie Knippen to talk about these questions and how understanding wildfire risk scores can help indicate where there are opportunities for risk mitigation.
In This Episode:
3:01 - What happened when two major insurers stopped writing new policies in California?
4:35 – Why are insurers only now saying “This is enough”?
5:54 – Are governmental regulations and mitigation requirements the only answer to rising risk?
8:37 – Erika Stanley gives an overview of the housing market in The Sip
9:36 – How do property, structural and community-level mitigation differ?
12:15 – Maiclaire and Jamie discuss how their jobs have made them hyper-aware of property-level risk
Links:
Up Next: Will Wildfire Risk Mitigation Requirements Change the California Insurance Industry?
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