California’s fall from grace has been steep and swift, and now even the insurance companies are pulling out. The two biggest American home insurance companies, State Farm and Allstate, announced last month that they will stop selling insurance policies to Californians. California, the most populous US state, is now entering the process that began in 1992 when Hurricane Andrew devastated Miami and the big insurance companies fled from Florida. ADVERTISEMENTThat makes short-term sense in terms of avoiding big pay-outs, but they are gradually destroying their own customer base. “I’ve spoken to insurance companies, and they don’t know...what insurance premium level to set for Florida for hurricanes, because sea level rise adds remarkably to those risk estimates.

Source: The Telegraph June 26, 2023 12:20 UTC