> Regulation in California has kept rates down for homeowners while earning the insurance industry a healthy profit

This is a big claim to make unsubstantiated. If it were so profitable, business wouldn't be pulling out.

Looking just at 2022 and 2023, Californian insurers wrote $28.8bn of fire and homeowner policies and experienced a 56.5% loss ratio [1]. If the LA fires cost insurers $30bn [2], that's almost five years' underwriting profits. Over the last ten years, California's homeowner insurers have paid out $108 in claims and expenses for every dollar of premium they brought in [3]. Show me the "healthy profit."

> the FAIR Plan, California’s high-cost, low-benefit state insurer of last resort

Even this stingy model will need a bail-out [2].

This analysis is deeply flawed, starting from the premise that insurers are screwing consumers and then trying to work backwards.

[1] https://www.insurance.ca.gov/01-consumers/120-company/04-mrk...

[2] https://abcnews.go.com/Business/los-angeles-fire-losses-reac...

[3] https://www.iii.org/sites/default/files/triple-i_trends_and_...

[4] https://www.insurancejournal.com/news/west/2025/01/16/808564...