An executive for insurance giant State Farm was fired after he made comments about premium increases in response to Southern California wildfires. Haden Kirkpatrick, the company’s vice president for innovation and venture capital, was surreptitiously recorded on a video discussing how his team would adjust rates if they faced financial losses due to fires.
Kirkpatrick claimed that his team would “cancel these policies” if rates were not approved, citing a potential $5 billion loss. He also stated that houses should not be built in areas like Pacific Palisades because of the fire risk, saying residents prioritize natural areas over safety.
State Farm denied any involvement of Kirkpatrick in business decisions related to rate hikes or claims handling, stating his comments “do not reflect our position regarding the victims of this tragedy” or its hiring practices. The company had requested an emergency rate increase of 22% for California homeowners insurance policies due to the wildfires, citing over $1 billion in paid-out claims and estimated losses of up to $7.6 billion.
California Insurance Commissioner Ricardo Lara met with State Farm on February 26 to discuss the insurer’s financial condition, after initially denying the company’s request for a rate hike.
Source: https://www.foxbusiness.com/economy/state-farm-executive-fired-over-comments-premium-hikes-after-california-wildfires