Cole Berk

A well-functioning insurance market makes for a stronger California. We need reforms that strengthen the FAIR Plan, allow the use of catastrophe models, and allow reinsurance costs to be incorporated in ratemaking – all so that the commercial insurance market can be built back up, insurers will write policies in in our state, and property owners can shop for coverage in a competitive market. #FixCAInsuranceCrisis https://lnkd.in/g4SDGszx Susan Milazzo, Marty Allred, Gary Bechtel, Chris Botsford, Marlene Chaker, AMP, Cody Charfauros, Mike Fontaine, AJ George, Paul Gigliotti, Tom Gilliland, Rosalyn Hardy, John M Hedlund, Bill Lowman, Jon Irvine, Wes Iseley, Chuck Iverson, Brad Livingston, President, Laura Martell, Andrew Mekjavich, David Neylan, Kim Nichols, Nick Pabarcus, CMB, AMP, Kevin Peranio, Jennifer Schachterle, David Smyle, Ike Suri, Mark Ulmer, Kevin Wall, Jeff Walsh, Tom Wight, Arvin Wijay, CMB, AMP

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𝗨𝗽𝗱𝗮𝘁𝗲𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗖𝗮𝗹𝗶𝗳𝗼𝗿𝗻𝗶𝗮 𝗙𝗔𝗜𝗥 𝗣𝗹𝗮𝗻 Many consumers have been struggling to place their property coverage and have had to turn to the California FAIR plan, the state's "insurer of last resort". This has resulted in heavy insurance premiums with very limited coverage that may not meet current standards. Insurance Commissioner Ricardo Lara has announced a significant agreement to modernize the California FAIR Plan as part of an ongoing effort to stabilize the insurance market and address the property insurance crisis, where we continue to see traditional carriers opting to leave California and often leaving the FAIR plan as the only available option. This modernization is a key element of Lara’s Sustainable Insurance Strategy, the largest reform since 1988's Proposition 103. 𝗠𝗮𝗷𝗼𝗿 𝗰𝗵𝗮𝗻𝗴𝗲𝘀: 1. 𝗘𝘅𝗽𝗮𝗻𝗱𝗲𝗱 𝗖𝗼𝘃𝗲𝗿𝗮𝗴𝗲: • New high-value commercial coverage option with limits up to $20 million per building. • Higher limits for residential policies to meet today’s property values and coverage needs. 2. 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆: • A new financial formula to protect policyholders in extreme loss scenarios, ensuring long-term security. 3. 𝗜𝗺𝗽𝗿𝗼𝘃𝗲𝗱 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆: • Increased public reporting on FAIR Plan activities and customer service metrics. 𝗪𝗵𝗼 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗶𝗺𝗽𝗮𝗰𝘁? • Consumers and Businesses: This initiative ensures a reliable safety net for those who cannot find insurance coverage in traditional markets. • Homeowners Associations and Builders: More robust coverage options and financial safeguards mean better protection and peace of mind. • Agricultural Sector: Enhanced coverage limits provide much-needed security for farms affected by wildfires and other risks. 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 𝗳𝗿𝗼𝗺 𝗞𝗲𝘆 𝗦𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿𝘀: • The California Farm Bureau, Community Associations Institute, California Building Industry Association, and California Association of REALTORS® have all voiced strong support, emphasizing the importance of these reforms for their respective communities. Commissioner Lara's efforts are paving the way for a potential improvement in the insurance market in California, ensuring that everyone from homeowners to business owners can find the coverage they need. For more details, you can read the full article at

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Did you know insurance is one of the most heavily regulated industries in the nation? Navigating regulatory complexities is particularly challenging in California – for both consumers and insurance providers. Cheers to our first panel at today's Business Resiliency Forum for untangling the problems, pinpointing immediate and long-range solutions, and threading the needle on tricky compromises. Look for highlights and quotables in our forum recap newsletter. For now, here are key takeaways from Rick Curtis (JCL Investments Inc.), Nancy Hoffman Vanyek (Greater San Fernando Valley Chamber of Commerce), Althea De Pietro Lemken (Building Owners and Managers Association Greater Los Angeles), and Bob Khalsa, CCIM MBA (Southland Regional Association of REALTORS). Thank you for moderating, Luis Portillo (San Gabriel Valley Economic Partnership)! ✔️The three massive wildfires raging right now in California beg the question: How does this impact our livability and affordability? The immediate impacts are often first felt by insurance providers and quickly passed on to consumers. It's simple. Insurance providers will back out if the risk is too high. ✔️ Covered by the California FAIR Plan? Cross your fingers your home is destroyed by a fire, rather than a flood or vandalism. This is NOT a comprehensive coverage solution. ✔️ Proposition 103, which protects consumers, creates interveners that can stall rate filings from getting approved in a reasonable timeframe. It can take regulators 8 months to a year to respond to proposed rate changes. Consider all the natural disasters that can happen in that time, especially with fast-spreading wildfires and accelerating climate impacts in California. ✔️ We're busy business people. We don't have time to write letters or stage demonstrations in Sacramento. What we can do is engage with in-district policymakers and join boots-on-the-ground campaigns in our communities. Make the most of your business association resources and chamber contacts. Take action with a single click when BizFed sends you quick-turn advocacy campaigns.

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Guy Carpenter, the reinsurance broking business within Marsh McLennan, reports property management is taking a healthy turn with risk-adjusted pricing trending down in the first half of 2024, and demand expected to increase in 2025 due to an increased focus on risk mitigation, model version changes, and growth in overall exposure. Traditional reinsurers provided most additional capacity. Despite a hard market, risk-adjusted pricing trended down mid-year, allowing some buyers to secure additional protection. A $35-$40 billion increase represents an increase of 5%-10% of overall catastrophe capacity. Many North American buyers expanded limits, with the top 20% purchasing over $100 million in additional limits. “Greater market stability, and moderating pricing in a number of segments, provided cedents with better ability to budget for additional levels of coverage.” We were especially pleased with the mention of risk mitigation. The movement away from a react and respond model towards a predict and prevent one is critical, and pays off dividends. Carriers, agencies - we help turn policyholders into onsite property managers with personalized messaging, task tracking, device integration and more- all under your brand. Ask us for a real world case study and a demo. [email protected] #predictandprevent #customerexperience #customerengagement #homeownersinsurance #claims #riskprevention #ai #reinsurance #insurance The Insurer - https://bit.ly/4c06OWo Reinsurance Business - https://bit.ly/46nBcsJ Intelligent Insurer - https://bit.ly/3SpXzYH

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The 2024 Atlantic #hurricane season has already caused around $4.1 billion in #insured losses however, experts suggest this could be just the beginning. Historically, most hurricane damage in the U.S. has occurred after mid-August. Discover more details on how the season might intensify by reading the article. #Florida #Losses

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This articles points out an interesting phenomenon that is going to impact every employer's work comp rates in the future. Last year, the number of claims went down but the cost of claims increased. Think about that for a minute. In our previous podcast, Mark Walls and I had an in depth conversation about why that is happening. It is not because the injuries are changing, it is because of advances in medical technology and expanded life span expectancy. This is a great thing for human quality of life, but there is a very real impact to the costs of insurance. It is things like this that make self-insuring a far better way to manage costs than buying insurance through the traditional marketing. California Restaurant Mutual Benefit Corp (CRMBC) The PATH Alliance Jon Wroten, MBA, CPP Mike McDonough, SIP Here are links to the podcast in case you missed it: 🎧 Listen here - https://lnkd.in/gP8FGwq2 📺 Watch here - https://lnkd.in/gaD7Gvn9

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