Vice President Kamala Harris has been criticized by the insurance industry for claiming that many insurance companies have canceled policies of victims of California’s wildfires, saying it is “false, wrong and dangerous.”
David Sampson, president and CEO of the American Property Casualty Insurance Association, rejected Harris’ claim, stating that insurers are committed to protecting customers and providing expedited relief. He emphasized that California law prohibits insurers from canceling policies during their term, except for limited exceptions.
The insurance industry has been experiencing an ongoing crisis in California, with several carriers limiting new policy applications or pulling out completely due to heavy losses and regulatory costs. State Farm announced last year it would not renew 72,000 home and apartment policies, while other leading insurers like All State, Farmers, and USAA have curbed new applications as well.
As a result, many homeowners who lost their policies struggle to obtain affordable coverage, making it difficult for them to recover from the devastating wildfires. Sampson warned that this situation is unsustainable, with insurance companies paying out 9% more in claims than premiums collected over the past decade.
The controversy highlights the need for policymakers to address the vulnerabilities of the California insurance market and provide relief to those affected by the ongoing wildfires.
Source: https://www.foxbusiness.com/politics/california-fires-vp-harris-called-out-claim-insurance-companies