Increasing Enrollment in State Insurance Plans

Insurance companies like The Hartford, USAA, Allstate, and State Farm faced challenges following the devastating Campfire incident in California, leading to a halt in writing new homeowners insurance policies across the state. Leslie Kaufman and Nadia Lopez from Bloomberg highlight how as private companies retreated, the state intervened through residual insurance plans, such as 'fair plans', to provide coverage, resulting in a significant rise in policyholders opting for these plans. However, the surge in enrollments raises concerns about the financial preparedness of these state-created plans to handle potential major catastrophes like wildfires.