California insurance market rattled by withdrawal of major companies

Michael R. Blood Associated Press

LOS ANGELES (AP) — Two insurance industry giants have pulled back from California’s home insurance marketplace, saying that increasing wildfire risk and soaring construction costs have prompted them to stop writing new policies in the nation’s most populous state.

State Farm announced last week it would stop accepting applications for all business and personal lines of property and casualty insurance, citing inflation, a challenging reinsurance market and “rapidly growing catastrophe exposure.” The decision did not impact personal auto insurance.

“We take seriously our responsibility to manage risk,” State Farm said. “It’s necessary to take these actions now to improve the company’s financial strength.”

Allstate, another insurance powerhouse, announced in November it would pause new homeowners, condo and commercial insurance policies in California to protect current customers.

“The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes and higher reinsurance premiums,” Allstate said in a statement.

California’s unsettled market aligns with trends across the country in which companies are boosting rates, limiting coverage or pulling out completely from regions susceptible to wildfires and other natural disasters in the era of climate change. Florida and Louisiana have struggled to keep healthy insurance markets following extensive damage from hurricanes. Premiums are rising in Colorado amid wildfire threats, and an Oregon effort to map wildfire risk was rejected last year because of fears it would cause premiums to skyrocket.

Scientists say climate change has made the West warmer and drier over the last three decades and will continue to make weather more extreme and wildfires more frequent and destructive. In recent years, California has experienced the largest and most destructive fires in state history.

Some California homeowners already are going without coverage, and a shortage of new policies could make it more difficult to buy a home. A state-run pool that serves as the insurer of last resort for many could face pressure as

WATER from page A-1 previously that they may have to pay some exit fee. However, FPUD has paid millions of dollars into future projects that now would not have to be built, saving the Water Authority millions of dollars.

The votes against the delay were Desmond, White, and Willis.

RMWD General Manager Tom Kennedy said, “I was disappointed that after three and a half years the commission is going to defer the decision for another 60 days. Also disappointed that some of the misstatements from the San Diego Water Authority seemed to influence some of the commissioners.”

Bebee said, “We really appreciate the turnout from the Fallbrook residents and they clearly identified the importance of switching wholesale providers and getting lower water. We are disappointed that after three years they continued to delay.”

Local Agency Formation Commissions or LAFCOs are regional service planning agencies located in all 58 counties and exercise regulatory and planning powers in step with their prescribed directive to oversee the establishment, expansion, governance, and dissolution of local government agencies and their municipal service areas to meet current and future community needs. LAFCOs were established in 1963 and administer a section of California planning law now known as the CorteseKnox-Hertzberg Local Government Reorganization Act of 2001. More infomation can be found in this story: https://www.villagenews.com/story/2022/09/15/news/ fpud-and-rmwd-applications-tochange-water-suppliers-head-tolafco-this-fall/71027.html enrollments surge. The state pool, the California Fair Access to Insurance Requirements Plan, provides basic fire insurance coverage for properties in high-risk areas when traditional insurance companies will not. Enrollments have jumped in recent years to 272,846 homes in 2022.

“We just don’t have a stable insurance market,” said state Sen. Bill Dodd, a Democrat from Napa, whose Northern California district has been charred by wildfires. “What’s happening is a lot of people in my district and frankly other districts are ... going naked — they have no insurance.”

According to data compiled by the industry-supported Insurance Information Institute, California has more than 1.2 million homes at risk for extreme wildfire, far more than any other state.

“The number of acres burned in California has grown steadily in recent years, as more people are moving into fire-prone areas of the state,” the institute said in a statement on the company departures from California. “More homes in harm’s way, combined with rising costs of repairing or replacing houses either damaged or lost to fire, leads to increased insured losses.”

In Colorado, which has been hit by devastating wildfires, insur- ance premiums have been rising significantly, and some smaller insurance companies have been pulling back from covering properties. A study commissioned by state lawmakers found that 76% of carriers decreased their exposures in Colorado in 2022, leaving the five largest insurance companies to dominate the market.

Florida has struggled to keep the insurance market healthy since 1992, when Hurricane Andrew flattened Homestead, wiped out some insurance carriers and left many remaining companies fearful to write or renew policies in Florida. Risks for carriers also have been growing as climate change increases the strength of hurricanes and intensity of rainstorms.

Louisiana is in the midst of an insurance crisis, exacerbated by hurricanes Delta, Laura, Zeta and Ida in 2020 and 2021. As claims piled up, companies that wrote homeowners policies in the state went insolvent or left, canceling or refusing to renew existing policies.

In California, the loss of large insurers could create more pressure to loosen consumer-minded policies that have held down rates in the state for years. Voters approved Proposition 103 in 1988, which allows the state insurance commissioner to reject proposed rate increases and order refunds.

It has been credited with saving consumers billions of dollars, but the industry says it places constraints on accurate underwriting and pricing risk.

Last year, Insurance Commissioner Ricardo Lara advanced regulations requiring insurers to give discounts to customers if they followed new standards like building fire-resistance roofs and creating defensible space around their homes.

Before their announcements, State Farm and Allstate both had been seeking significant rate increases.

Consumer Watchdog, a nonpartisan advocacy group, said State Farm’s decision was unlawful.

“Insurance companies can’t just stop selling insurance to consumers in order to make more money for themselves,” Harvey Rosenfield, the author of Proposition 103 and the founder of the group, said in a statement. “They have to open their books and get the (state) insurance commissioner’s approval.”

Lara’s office didn’t respond to an email request for comment.

A state website lists more than 100 companies selling residential insurance, though some offer only limited lines of coverage, such as earthquake or renter insurance.

Associated Press writer Coleen Slevin in Denver contributed.

Peripheral Neuropathy Breakthrough!

“My feet feel like they’re on re.”

“Each step feels like I’m walking through wet paint.”

“I live in constant fear that I’ll fall.”

“I can’t sleep, my hands and feet tingle all night.”

What do all of these people have in common? ey su er from peripheral neuropathy. It’s estimated that more than 20 million people in the United States have peripheral neuropathy. Unfortunately this gure may be signi cantly higher as the disease is o en misdiagnosed because of its wide array of symptoms.

Sarika Connor, L.Ac, of Soma Acupuncture & Wellness in Temecula shares this belief. “I’ve been treating neuropathy, in all its various forms, for about a decade now and so o en my patients come to me because of the symptoms, not because of a diagnosis. ey see me on television, or read the testimonial of another patient and say to themselves ‘hey, I feel the same thing’.”

Frankie M. of Murrieta testi ed to this. “I remember my husband driving me to my consultation and I saw a woman running just outside our neighborhood. I was so envious - I just kept thinking ‘I would give anything just to walk again’. My primary care doctor told me my troubles with pain and balance were just symptoms of old age and gave me a prescription. I was so depressed.”

Fortunately Frankie would eventually see Sarika on the local news talking about similar symptoms and how she o ers a real solution at Soma Acupuncture. “I just knew I had to see her. She was my last hope.” ey’ve been everywhere else. ey’ve been told there’s no hope. ey’ve been told ‘it’s just part of getting older’.” shares Amanda, a Patient Care Technician at Soma Acupuncture. “It just breaks my heart but I know how much we can help people like Frankie so I’m always so happy when they walk through our door.” ose diagnosed with peripheral neuropathy o en face a very grim reality; Western medicine declares that there is no solution while most alternative therapies carry large price tags and o er little to no resolve. Which is why Sarika and the sta at Soma Acupuncture pride themselves on being ‘the last resort with the best results.’

“Almost all of our patients come to us with a story similar to Frankie’s.

Peripheral neuropathy is a result of damage to the nerves and this damage is commonly caused by lack of blood ow in the hands and feet. A lack of blood ow results in a lack of nutrients; the nerves then begin to degenerate and die which causes pain ranging from discomfort to debilitation. Because neuropathy is a degenerative condition, once those nerves begin to deteriorate they will continue to do so until they are completely expired, leaving those su ering with crippling balance issues. “In this case, the absence of pain is not necessarily a good thing,” shares Sarika. “ is usually indicates that your nerves are hanging on by a fragile thread.”

So how exactly is Sarika able to reverse the e ects of this degenerative disease? “Acupuncture has been used to increase blood ow for thousands of years which helps to get the necessary nutrients to the a ected nerves. But the real magic happens when I integrate ATP Resonance Bio erapy™. is is tech that was originally developed by NASA to expedite recovering and healing.”

“I just can’t say enough about Soma Acupuncture,” Frankie shared through tears of joy. “My husband and I moved here 3 years ago and he’s gone hiking almost every day. I always stayed home because of the pain and discomfort. Yesterday I walked the trail with him! And next week we’re starting ballroom dancing lessons. I am truly living life these days.”

“According to Frankie’s test results, she has seen a 74% improvement in pain and functionality, which is on par with a majority of our patients.” shares Amanda. “But more important than those test results is the joy she’s expressed being here and hearing about all the amazing things she’s able to do because she feels great!”

By seamlessly blending the ancient science of acupuncture with modern medical solutions Sarika has achieved a 90% success rate in reversing the e ects of neuropathy. She starts each patient with an initial consultation during which a sensory exam is performed. “ is not only aids in making a proper diagnosis but it helps to de ne just how much nerve damage has occurred” tells the practitioner. “ is is important because if a patient has su ered more than 95% damage, there is little that I can do to help them. I’m familiar with the medical miracle but I know my limits as a practitioner and the limits of my medicine.”

When it comes to treating peripheral neuropathy, regardless of its origin, early detection greatly improves your chances of a full recovery.

If you or someone you love are su ering with chronic pain that presents as burning, tingling or ‘pins and needles’ or you’ve recently been diagnosed with peripheral neuropathy, it’s important to know that there are options. ere is hope.

Call (951) 597–0488 to schedule an initial consultation or visit SomaAcuWellness.com to read more incredible success stories.