ALL TO OUR JOINT HEARING. OF THE
JOINT LEGISLATIVE COMMITTEE ON
EMERGENCY MANAGEMENT AND THE
SENATE INSURANCE COMMITTEE. I AM
THE CHAIR OF THE OF LEGISLATIVE
COMMITTEE ON EMERGENCY
MANAGEMENT HANNAH BETH JACKSON.
I AM THE REPRESENTATIVE OF THE
NINETEENTH SENATE DISTRICT.
SOME OF YOU MAY BE AWARE OF IT
IT'S ALL OF THE COUNTY OF SANTA
BARBARA.
AND WESTERN VENTURA COUNTY BOTH
OF WHICH RIGHT NOW OR UNDER
MANDATORY EVACUATIONS AS A
RESULT OF THE FIRES. WE'RE
EXPECTING SOME MAJOR RAINS AND
THE POTENTIAL FOR SIMILAR. OF
MUD. AND DEBRIS.
EVENTS SIMILAR TO WHAT WE HAD
JUST A COUPLE MONTHS AGO SO. I
GOT AN EYE ON. MY PHONE IF YOU
DON'T MIND TO WHILE I HEAR HOW
THINGS ARE GOING. UP BUT THIS IS
A A VERY IMPORTANT DISCUSSION
ABOUT INSURANCE IN THE ERA OF
CLIMATE CHANGE AND.
I AM DELIGHTED TO BE JOINED
TODAY BY MEMBERS OF THE SENATE
INSURANCE COMMITTEE INCLUDING.
THE NEW IS CHAIR OF THE SENATE
COMMITTEE SENATORS STEVE GLAZER
WHO.
IS NOW THE OFFICIAL CHAIR OF
THE SENATE INSURANCE COMMITTEE
OF PARTICIPATING IN THIS EVENT
OF THIS AFTERNOON. AND WOULD
LIKE TO EXTEND A WARM WELCOME TO
OUR OTHER MEMBERS OF THE JOINT
COMMITTEE AND ALL THE.
DISTINGUISHED IT WITNESSES AND
GUESS WHO TRAVELED FROM. OF ALL
OVER THE STATE TO BE WITH US
TODAY AND TO DISCUSS WITH US.
THE TOPIC OF DRAW TO CLIMATE
CHANGE AND FIRE.
HOW IS THE CALIFORNIA HOMEOWNERS
INSURANCE MARKET RESPONDING?
AND.
THIS PAST YEAR IS SO I THINK WE
ALL KNOW CALIFORNIA EXPERIENCED
ITS LARGEST AND MOST
DESTRUCTIVE.
WILDFIRE SEASON IN HISTORY.
NEARLY NINE THOUSAND.
WILD FIRES IGNITED ACROSS THE
STATE.
BURNING OVER ONE POINT TWO
MILLIONACRES OF LAND I MEAN
THESE NUMBERS ARE JUST
ASTRONOMICAL AND SHOCKING.
IT DESTROYED THESE FIRES
DESTROYED MORE THAN TEN THOUSAND
EIGHT HUNDRED STRUCTURES.
KILLED AT LEAST FORTY SIX
PEOPLE.
AND FIVE OF CALIFORNIA'S MOST
DESTRUCTIVE WILDFIRES ON RECORD
OCCURRED. IN THIS PAST YEAR
INCLUDING THE THOMAS FIRE WHICH
BURNED WHOLLY WITHIN THE
NINETEENTH SENATE DISTRICT.
AND OF. BEGAN ON DECEMBER FOURTH
SOMETHING WHICH IN AND OF ITSELF
IS QUITE IN AN EXTRAORDINARY
EVENT TO A GIVEN THAT.
THE TRADITIONAL FIRE SEASON IN
CALIFORNIA RUNS FROM ABOUT APRIL
TO OCTOBER.
OF THIS YEAR THIS FIRE STARTED
LITERALLY AN HOUR AND A HALF
AFTER I'D GAVEL DOWN A HEARING.
TALKING ABOUT OUR EMERGENCY
ALERT SYSTEMS AND HOW THEY HAD.
WORKED OR FAILED IN THE
NORTHERN CALIFORNIA FIRES JUST A
FEW MONTHS EARLIER. SO.
WE ARE LOOKING AT.
A A NEW REALITY HERE POWER WE
ARE LOOKING AT A TWELFTH MONTH
YOUR FIRE SEASON. AND INDEED
THE.
THOMAS FIRE BURNED OVER TWO
HUNDRED EIGHTY TWO THOUSAND
ACRES MAKING IT THE LARGEST
WILDFIRE IN CALIFORNIA HISTORY.
IT BURNED FOR FORTY DAYS.
FORTY DAYS FORTY NIGHTS.
.
AND FOR THOSE OF US WHO HAD TO.
A LIVE WITHIN THAT IT WAS REALLY
ONE OF THE MOST DRAMATIC I THINK
NATURAL DISASTERS ONE CAN
EXPERIENCE IN OF COURSE. OUR
FIRST RESPONDERS.
DID AN EXCEPTIONAL JOB BUT
NONETHELESS WE STILL LOST OVER
THOUSAND STRUCTURES IN THAT
AREA.
AND THAT WAS A BEFORE. THE RAIN
ADVANTAGE IN THEIR MIND A SIDO
UM WHICH ACTUALLY OCCURRED THREE
DAYS BEFORE THE THOMAS FAR WAS
ACTUALLY EVEN FULLY CONTAINED
THAT GIVES YOU AN IDEA. NATURE
IS NOT BEEN VERY HAPPY WITH US
RECENTLY AND.
.
WE GOT INFECTED MONASHEE DOVE
RIGHT AFTER THE FIRES IN THE
ENTIRE BURDEN KILL SIDE.
THEY HAD A RECORD HALF INCH OF
RAIN IN FIVE MINUTES.
WHICH IS WHAT PRECIPITATED THESE
MUD SLIDES.
AND.
.
CREATED. A RIVER OF MUD IN
BOULDERS AND DEBRIS USE THAT I
DON'T THINK WE'VE EVER SEEN.
BEFORE IN CALIFORNIA. AND
ULTIMATELY KILLED AN ADDITIONAL
TWENTY THREE PEOPLE.
AND DAMAGED OR DESTROYED MORE
THAN ANOTHER FOUR HUNDRED HOMES
SO.
NOT INCLUDING THAT OF FANTASY
THE PROJECTED INSURANCE LOSSES
FOR TWENTY SEVENTEEN EXCEED.
OVER TWELVE BILLION DOLLARS.
AND UNFORTUNATELY.
THIS DOES NOT THIS YEAR DOES
NOT APPEAR TO BE AN ABNORMALITY.
TO THE CONTRARY MOST OF OUR
LARGEST FIRES WILDFIRES HAVE
OCCURRED WITHIN THE PAST THIRTY
YEARS AND WAS MENTIONED. A OF
FIVE OF THE TOP FIRES JUSTIN
TWENTY SEVENTEEN SO.
CLEARLY CHANGING CLIMATE
PATTERNS HAVE MADE OUR STATE
MORE VULNERABLE TO WILDFIRES
WITH MASSIVE TREE DIOXIN INSECT
INFESTATIONS.
YEAR ROUND FIRE WEATHER
CONDITIONS AND CRITICAL LEVELS
OF FUELS ACCUMULATIONS.
ALL OF COMBINED TO CREATE SEVERE
FIRE RISKS POWER THROUGHOUT.
CALIFORNIAN DEED WE ARE A SPEND
NOW ABOUT ONE POINT EIGHT
MILLION BILL THREE POINT EIGHT
MILLION TREES HAVE DIED AND ARE
STILL.
POTENTIAL FUEL FOR ADDITIONAL
FIRES THROUGHOUT OUR STATE SO.
.
THAT ALONE SHOULD GIVE US
BECAUSE. THE AND GIVE US PAUSE
FOR A WHAT THE FUTURE LOOKS LIKE
THE NATIONAL INTERAGENCY FIRE
CENTER'S PREDICTIVE OUTLOOK IN
TWENTY EIGHTEEN. IS FORECASTING
ABOVE NORMAL LARGE FIRE
POTENTIAL IN CALIFORNIA DUE TO
THE PERSISTENCE OF THOSE DRY
FUELS THE FREQUENT OFFSHORE
WINDS WERE GETTING. AND THE
GENERALLY UNFAVORABLE WEATHER
THAT IS BEING PREDICTED SO THIS
NEW NORMAL. OF YEAR ROUND SEVERE
FIRE RISK HAS LED TO SIGNIFICANT
QUESTIONS OVER WHETHER
CALIFORNIA'S HOMEOWNERS WILL BE
ABLE TO FIND. AFFORDABLE
HOMEOWNER INSURANCE MOVING INTO
THE FUTURE.
AT LEAST IN THE NEAR TERM
HOWEVER ALL INDICATORS SUGGEST
THAT THE HOMEOWNERS INSURANCE
MARKET. IS STILL FUNCTIONING AND
FUNCTION WELL IN CALIFORNIA SO
THAT IS AT LEAST THE IMMEDIATE
GOOD NEWS. AND WHILE SOME
COMPANIES MAY B CHOOSING NOT TO
RENEW.
POLICIES IN CERTAIN AREAS IT
APPEARS THAT. OTHER CARRIERS ARE
ACTIVELY FILLING THESE VOIDS AND
INDIVIDUALS STILL TO THIS DAY
HAVE A RANGE OF CHOICES. AMONG
CARRIERS AND POLICY SO AT LEAST
THE SNAPSHOT FROM TODAY. DOES
APPEAR TO BE FAVORABLE.
GOING FORWARD A WE WILL BE
HEARING TODAY FROM A VARIETY OF
FOLKS IN THE INSURANCE MARKET.
IN INDUSTRY. WILL HEAR ALSO
FROM.
THE. OF THOSE WHO ARE FIGHTING
THE FIRES ON THE GROUND WILL BE
HEARING FROM OUR STATE
DEPARTMENT OF INSURANCE AND
INSURANCE COMMISSIONER. FROM A
STATEWIDE PERSPECTIVE AND.
HOPEFULLY WE WILL THEN HAVE
PUBLIC COMMENT WHERE WE WILL ASK
YOU IF YOU DO WISH TO SPEAK AS A
MEMBER THE PUBLIC.
TO COME TO THAT MICROPHONE AND
TO. GIVE YOUR NAME AFFILIATION
AND.
WILL GIVE YOU UP TO A TWO
MINUTES TO SHARE YOUR THOUGHTS
WITH US SO.
.
AS I MENTIONED WE HAVE.
DAVE JONES WITH US AND I AM A
PARTICULARLY INTERESTED IN
HEARING THE THOUGHTS ON THE LONG
TERM HEALTH OF CALIFORNIA'S
HOMEOWNER INSURANCE MARKET.
THIS IS A CRITICAL TIME BECAUSE
AS WE KNOW. OF FOR MOST OF US
FOR MANY OF US AT LEAST OUR MOST
VALUABLE ASSET IF WE ARE
FORTUNATE ENOUGH TO HAVE GOTTEN
IN THE CALIFORNIA MARKET. IN A
TIMELY ENOUGH FASHION TO BE ABLE
TO BUY OR HOMES AND TO RETAIN
HOMEOWNERSHIP.
IT'S GOING TO BE CRITICALLY
IMPORTANT WE PROTECT THAT ASSET
SO I LOOK FORWARD TO THIS
DISCUSSION OF LIKE TO TURN THE
FLOOR OVER TO MY CO CHAIR
SENATOR PLACER FOR ANY OPENING
COMMENTS.
THANK YOU.
CHAIR JACKSON.
BEGINNING US ON THE AYE AYE THE
RIGHT FOOT WITH THE GREAT
PERSPECTIVE ABOUT THE AT THE
BROADER SITUATION THAT WE FACE
IN CALIFORNIA AND THE ASKING
THAT QUESTION IS IS THE NEW
NORMAL.
THAT WE'RE GONNA FACE AYE GOING
FORWARD BUT I WANT TO JOIN IN
IN.
AND THANKING THE MEMBERS FOR
PARTICIPATING DAR WITNESSES AND
MEMBERS OF THE PUBLIC FOR. BY.
BEING HERE FOR THIS DISCUSSION
ABOUT TO WHAT ALL THESE THINGS
GLOBAL WARMING DROUGHT FIRE WHAT
IS IT ALL MEAN FOR THE
HOMEOWNERS MARKET AND. REALLY MY
OF MY SUMMING UP OF THE. OF THE
QUESTION IS THAT WE'VE IF WE'RE
GOING TO CONSIDER LEGISLATION.
ODD IN RESPONSE TO THESE.
THESE ISSUES.
I KNOW IT IS OUR JOB TO LOOK
OUT FOR THE CONSUMERS.
AND THAT INCLUDES DOING WHAT WE
CAN TO PRESERVE A FUNCTIONING
INSURANCE MARKETS.
SO THAT EVERYONE WHO NEEDS
COVERAGE YAKKING GET IT AND I
LOOK FORWARD TO THE AT THE
TESTIMONY TODAY.
WOULD ANY OTHER MISTER VICE
CHAIR. THANK YOU OTHER GAMES ARE
MUCH SENATOR JACKSON.
JUST.
AS WE ENTERED TO THIS
DISCUSSION.
WITH.
MARKET RESPONSE.
.
AND ADEQUATE.
.
ACCESS TO MARKETS ENOUGH FOR
HOMEOWNERS INSURANCE.
.
I WOULD JUST ASK THAT WE BE
CAREFUL ABOUT MAKING SURE THAT
WE.
MAINTAIN CAPACITY I THINK YOU
KNOW WHAT I TAKE A LOOK AT OUR.
THE CAPACITY THAT WE HAVE IN
THE MARKETPLACE FOR HOMEOWNERS
INSURANCE.
IT SEEMS TO BE ADDRESSING THE
ISSUE.
AND AYE I SPEAK FROM MY OWN
EXPERIENCE IN TERMS OF WHAT.
WERE ABLE TO HANDLE.
WITHIN MY OWN INSURANCE AGENCY.
WE'VE GOT A NUMBER WERE
INDEPENDENT AGENTS BROKERS SO.
OUR SITUATION MAYBE IT'S
DIFFERENT.
BUT SOME AGENTS BUT.
WE DO HAVE ACCESS TO.
TO MARKETS.
FOR FIRE COVERAGE EVEN THE
HIGHER PROTECTION CLASS CODES.
WHEN WE TAKE A LOOK AT YOU KNOW
IS THERE AN OPTION THROUGH. THE
SURPLUS LINES MARKET.
THAT IS SO A PATHWAY ALSO BUT.
TYPICALLY WE'RE TRYING TO DEAL
WITH JUST THE ADMITTED MARKET
MAKING SURE THAT WE CAN PUT
PEOPLE.
IN GOOD COMPANIES THAT ARE
ADMITTED.
.
AND THE REGULATED.
AND THEN.
IN ADDITION TO THAT WE JUST
WANT TO MAKE SURE THAT.
YEAH WE HAVE THE FOR THE FAIR
PLAN THERE'S THAT THERE'S ACCESS
TO THE FAIR PLAN. IN THE EVENT
THAT YOU CAN'T GET COVERAGE
ANYWHERE ELSE.
AND.
FROM WHAT I'M HEARING IN IT.
POLICE.
.
REVIEWS THIS AND.
IF I'M AND CRACKED CRACKED ME
BUT.
.
FROM WHAT I'M BEING TOLD IS THAT
THE FAIR PLAN IS NOT.
SEEING A HUGE INCREASE.
THEN DEMAND.
AND.
BUT I TALK TO OUR MARKETS AND.
WHAT THEY'RE DOING WITH THE
BILL AVAILABILITY OF COVERAGE?
I THINK WHAT YOU ARE SAYING IS
YOUR SEEN SOME MARKETS PULLING
IN.
AND.
PUT UP OTHERS PULLING OUT SO
YOUR YOUR SEEN CHANGING
OCCURRING WITHIN THE
MARKETPLACE.
AND SO THAT'S GONNA DISRUPT SOME
FOLKS THAT ARE GONNA HAVE TO
FIGURE OUT NOW HOW DO I GET
COVERAGE.
AND.
THE COSTS THAT COVERS MAYBE MORE
WHAT THEY'RE PAYING.
.
WE FOR INSTANCE WE HAVE TO
ADMITTED MARKETS THAT.
WE'VE JUST A BROUGHT INTO OUR
AGENCY. THAT WE'RE LOOKING TO
APPOINT NEW AGENCIES SO.
.
I JUST KIND OF WANT TO KEEP THAT
IN MIND AS WE DELVE FORWARD ON
THIS ISSUE AND THEN WE WILL HAVE
LEGISLATION IS MOVING FORWARD
TO.
MUCH OF IT PRIDE VERY GOOD.
BUT WANT TO MAKE SURE THAT WE'RE
KEEPING AN EYE ON THE BALL IN
TERMS OF THOSE ISSUES.
CAP.
WE DON'T WANT TO HAVE AN
UNINTENDED CONSEQUENCE OF WHAT
MAY HAPPEN IN THE MARKETPLACE.
AS A RESULT OF TRYING TO DO
SOMETHING GOOD.
BECAUSE I THINK YOU'RE RIGHT AND
I COURSE THAT IS PART OF THE
DISCUSSION WE'RE HOPING TO HAVE
HERE CENTER MORE LIKE TO WE
SHOULD SAY THAT.
CHAIR OF THIS IS MY AND I'M ROLE
MEETING.
AS A MEMBER OF THE INSURANCE
COMMISSION SO.
CENTER JACKSON IF YOU COULD MAKE
SURE THAT SENATOR GLAZERS EASY
ON ME. TODAY YOU NOT KIND OF
SENSITIVE.
I'M BUT.
WELL NATION MY FATHER.
MY FATHER RAISED ME.
.
BY EARNING A LIVING AS.
.
A SALESMAN IN INSURANCE HE WAS A
CHARTERED LIFE UNDERWRITER.
AND ALSO SOLD LIFE INSURANCE AND
PROPERTY AND CASUALTY SO. I'M
ALSO A CERTIFIED FINANCIAL
PLANNER BUT I NEVER GOT A
LICENSE TO SELL INSURANCE BUT
TED.
AS A CPA DID HAVE A CLIENT THAT
WAS AN INSURANCE COMPANY IT WAS
FUN TO BE INSIDE.
THE BOOKS OF OF OF OF ONE SO I'M
I'M LOOKING FORWARD TO LEARNING
A LOT HERE. BUT I'M ALSO LOOKING
FORWARD TO SEE HOW WE INTERPLAY
WITH THE MARKET.
SO THAT WE DON'T.
GET IN ITS WAY BECAUSE IT DOES
HAVE A WAY OF SELF CORRECTING.
OVER THESE THINGS I'M I'M JUST
LOOKING FOR THE EDUCATION SO
THANK YOU VERY MUCH. THANK YOU.
A DOCTOR PAN.
THANK YOU ARE OBVIOUSLY THIS IS
A VERY IMPORTANT ISSUE WE START
TALKING ABOUT LARGE CATASTROPHIC
EVENTS ALIKE FIRES WE'VE
EXPERIENCED.
HERE IN SACRAMENTO WHERE
REPRESENTING A NO.
ACTIONS COMMISSIONERS WELL YOU
KNOW WE ARE BIG THINGS FLOODS
BUT WE'VE MADE A POLICY DECISION
LEASES A COUNTRY TO KIND OF MOVE
THAT OUT THE MARKET IS A
SEPARATE. DEAL OUT OF IT
WONDERED FEDERAL THE FEDERAL
PLAN THINK WHEN THINGS I THINK
ABOUT IS HOW DO WE. KNOW HANDLE
LARGE SCALE LOSSES AND STILL
PROTECT YOU KNOW HAVE A WORKING
INSURANCE MARKET. RIGHT SO YOU
WOULD TALK ABOUT EARTHQUAKES YOU
KNOW THE FIRES.
OTHER TYPES OF EVENTS AS WELL
AND CERTAINLY LOOKING FORWARD TO
HEARING.
THAT'S MY ABOUT HOW WE'RE GOING
TO MAKE THAT WORK BOTH FOR
PEOPLE WHO NEED THE PROTECTION
IN THE SAFETY NET OF THE
PROTECTION. AND THEN WHAT
HAPPENS WHEN THE EVENTS HAPPENED
RIGHT BECAUSE RIGHT NOW WE HAVE
WATER REBUILDING TO DO. AND HOW
HOW WE ENSURE THAT HAPPENS AND
AND AND AND IS DONE IN A WAY
THAT.
RESTORES THOSE COMMUNITIES
BECAUSE IT'S NOT JUST ABOUT IT
EACH INDIVIDUAL LAWSUITS THAT
CUMULATIVE IMPACT. REGIONAL
LOSSES HAVE WHEN YOU HAVE
NUMEROUS
LOSSES OF. WHAT TIMES YOU GET
YOU KNOW GET HOMEOWNERS UNDER
SHARON'S FOR FIRE YOU'RE
THINKING ABOUT WELL MAYBE
SOMETHING THAT? HAPPENED ON YOUR
PROPERTY IT BECAUSE YOUR HOUSE
BURNED DOWN NOT YOUR ENTIRE
NEIGHBORHOOD. RIGHT AND SO.
EVEN IF YOU BUILD ONE OR TWO
AND HALF THE REST OF THE BLOCK
ISN'T BILL THAT AFFECTS ACTUALLY
THE VALUE OF YOUR OWN HOME THAT
AFFECTS THE ACTUALLY THE
LIVABILITY OF IN TERMS OF YOUR
NEIGHBORHOOD AND SO FORTH. SO WE
HAVE THESE CUMULATIVE FACTS WHEN
YOU HAVE MASS KNOW WHEN YOU
HAVE.
DESTRUCTION THAT SO WIDESPREAD
IN THE COMMUNITY SO IT'S NOT
JUST ABOUT.
NO ONE POLICY BUT ONE POLICY
IT'S A CUMULATIVE EFFECT THAT WE
NEED TO DRESS AS WELL THANK YOU.
WELL I THINK THAT'S A PERFECT
SEGUE WHO NOW HAVE A SENSE OF
WHAT TO WERE ALL ANXIOUS TO HEAR
ABOUT SO.
WHERE FOR THE FIRST ITEM?
OF DISCUSSION IS THE STATEWIDE
PERSPECTIVE AND HAS FIRE RISK
REACH PERMANENT CATASTROPHIC
PROPORTIONS.
WE HAVE FOLLOWED THE ARE A
COMMISSIONER FOR THE DEPARTMENT
OF INSURANCE STEVE JONES WHO
WILL SPEAK IN ALSO MATTHEW RIGHT
ISN'T REISMAN IS AT THE
PRONUNCIATION. WHO IS THE
ASSISTANT DEPUTY DIRECTOR FOR
CAL FIRE? AND I'D LIKE TO. DAY
GIVE THE FLOOR TO YOU.
COMMISSIONER JONES IF YOU WOULD
FOR TEN MINUTES TO.
SO TO SHARE WITH US YOUR
THOUGHTS.
THANK YOU VERY MUCH MADAM
CHAIRWOMAN. AND MISTER CHAIRMAN
CENTER PAN CENTER MORE LOCK.
IT'S A PRIVILEGE TO SERVE AS THE
STATE'S INSURANCE COMMISSIONER I
THANK YOU FOR THE OPPORTUNITY TO
TESTIFY BEFORE YOUR.
JOINT COMMITTEES ABOUT THIS
CRITICALLY IMPORTANT TOPIC OF
FIRES. AT THE HOMEOWNERS
INSURANCE MARKET AND FACTORS
LIKE CLIMATE CHANGE DATA ARE
IMPACTING THE MARKET WANT TO
THANK. YOU FOR CONVENING THIS
IMPORTANT HEARING I WANT TO
CONGRATULATE CENTER GLAZER ON
HIS NEW CHAIR. AND.
WE LOOK FORWARD TO WORKING WITH
YOU GOING FORWARD MY TEAM AND I.
AS YOU UP TO FILL THAT IMPORT
RESPONSIBILITY. AND I ALSO WANT
TO THANK. THE MEMBERS HERE.
CENTER JACKSON OTHERS WHO SAT.
A CONSTITUENTS HAVE A SUFFER
DIRECTLY FROM THE FIRES AND DAB
WE'VE WORKED CLOSELY.
WITH THOSE SENATORS WITH THOSE
ASSEMBLY MEMBERS WHOSE
CONSTITUENTS ARE DIRECTLY
IMPACTED BY THE FIRES IT'S BEEN.
A HERCULEAN EFFORT ON THE PART
OF THE MEMBERS AND SENATORS AS
WELL AS OUR OFFICE INTO. I THINK
WE CAN.
CONTINUE TO.
UNDERSTAND THAT WILL CONTINUE
TO HAVE TO KEEP WORKING TO HELP
PEOPLE BECAUSE THE ROAD TO
RECOVERY IS A SPLIT ALONG AND
PAINFUL ONE BUT. THAT WE REALLY
APPRECIATE THE LEADERSHIP OF
CENTER JACKSON OTHERS IN THEIR.
IN THEIR DISTRICTS SCORE THAT
SLIDE SO I'M.
BECAUSE.
.
WHO HAS POINTED OUT?
IN THE INTRODUCTORY REMARKS OF
THESE TWENTY SEVENTEEN FIRES
WERE.
AMONG THE MOST DEVASTATING
FIRES COLLECTIVELY ES SADLY SOME
SIXTY NINE PEOPLE LOST THEIR
LIVES.
AB BETWEEN THE FIRES IN NORTHERN
AND SOUTHERN CALIFORNIA THEN THE
MUD FLOWS IN MUCH ACETO IN THE
CHAIRWOMAN'S DISTRICT. NEAR
SANTA BARBARA.
MANY OF YOU THAT NO DOUBT OF
TALK TO FIRE SERVER SURVIVORS I
HAVE HEARD FIRST HAND.
THEIR HARROWING TALES.
PEOPLE WHO LOST THEIR HOMES AND
WE'RE LUCKY TO NOT LOSE THEIR
LIVES ESCAPING WITHIN SECONDS.
OF LOSING THEIR LIVES.
MY THOUGHTS AND CONCERNS COULD
YOU TO BE WITH THEM.
AS THEY AND THEIR COMMUNITIES A
STRUGGLE TO RECOVER AND AS WE
COLLECTIVELY THINK ABOUT THE
APPROPRIATE PUBLIC POLICY
RESPONSES TO THESE EVENTS. ABOUT
WE SHOULD CONTINUE KEEP I THINK
IN OUR MINDS YOU KNOW YOU TO
FORMOSA SURVIVORS. THOSE WHO
LOST LOVED ONES THOSE WHO LOST
THEIR HOMES LOST THEIR PRECIOUS
POSSESSIONS IN THEIR MEMORIES.
THEY DO FACE A LONG AND
DIFFICULT ROAD.
THE FALL TWENTY SEVEN. TEEN
ILLUSTRATED IN DRAMATIC AND
TRAGIC FORM A THAT WE NOW LIVE
WITH THE YEAR ON FIRE SEASONS
BEEN COMMENTED ON BY OUR
GOVERNOR BY. FIRE OFFICIALS YOU
PROBABLY HEAR THE SAME TODAY.
IN A TWENTY SEVENTEEN HUNDREDS
OF THOUSANDS OF RESIDENTS BOTH
NORTHERN AND SOUTHERN CALIFORNIA
WERE DRIVEN FROM THEIR HOMES.
SOMETIMES ONLY MINUTES TO SPARE
AS THESE WIND DRIVEN WILD FIRES
SWEPT THROUGH AND DESTROYED TENS
OF THOUSANDS OF HOMES BUSINESSES
AND VEHICLES.
AND ALSO TOOK THE LIFE OF ONE
FIREFIGHTER ACCORDING IVERSON.
A DEADLY WILDFIRES IN DECEMBER
WERE VIRTUALLY UNHEARD OF AND
YET.
THOMAS FIRE.
AS THE CHAIR WITH A NOTED
BURNED FOR NEARLY THE ENTIRE
MONTH OF DECEMBER.
AND IT'S A RECORD BREAKERS THE
LARGEST MOST DAMAGING FIRE
STATE'S HISTORY TERMS ACREAGE.
CHARRING MORE THAN TWO AND
EIGHTY ONE THOUSAND. ACRES.
NOW IN RESPONSE TO BOTH THE
NORTH BAY AND SOUTHERN
CALIFORNIA FIRES EYES THE
COMMISSIONER OF INSURANCE TOOK A
NUMBER OF IMMEDIATE STEPS TO
HELP. THE FACT THAT RESIDENTS
AND THEIR COMMUNITIES INCLUDING
SIGNING ORDERS IT CUT THROUGH
RED TAPE. ALLOWING INSURANCE
COMPANIES TO MOVE MORE QUICKLY
TO HELP RESIDENTS GET THE
RESOURCES THEY NEED TO START THE
RECOVERY. AND REBUILDING
PROCESS.
I MOBILIZED OUR TEAMS TO
PROVIDE SERVICES TO WILDFIRE
SURVIVORS I SHOULD OFFICIAL
NOTICES TO MAKE SURE THAT
INSURANCE PROFESSIONALS
INCLUDING PUBLIC ADJUSTERS
INSURERS AND CLAIMS ADJUSTERS
REMINDED. OF THEIR OBLIGATIONS
TO KNOW AND FOLLOW ALL OF
CALIFORNIA'S LAWS REGULATIONS
PERTAINING TO CLAIM SETTLEMENT.
I WILL NOTE THAT SOME CONSUMERS
INITIALLY WERE. PROVIDED
INCORRECT INFORMATION A BY THEIR
AGENTS OR THEIR INSURERS AND
THAT CAUSED ME ISSUE A FORMAL
NOTICE DIRECTING INSURERS TO
TAKE STEPS TO ME THE CORRECT
THAT PROBLEM AND THEY DID. WE
STOP GETTING THOSE COMPLAINTS.
IN ADDITION.
ARE CONSUMER SERVICES TEAMS
WORKED IN THE MANY LOCAL
ASSISTANCE CENTERS EVER STOOD UP
BY LOCAL GOVERNMENTS PROVIDING
ONE ON ONE SUPPORT FOR THOUSANDS
OF RESIDENTS. ARE INSURANCE.
INVESTIGATORS DETECTIVES WHO ARE
ENFORCEMENT BRANCH TEAMED UP
WITH THE CONTRACTORS STATE
LICENSE BOARD AND LOCAL DE ARES.
TO ATTEND TOWN HALL MEETINGS AND
TO VISIT AFFECTED NEIGHBORHOODS
TO DO EVERYTHING WE COULD TO
SUPPRESS TO PREVENT SCAM ARTISTS
WHO OFTENTIMES FLOOD INTO AREAS
AFFECTED BY. DISASTERS LIKE THIS
AND PRAY ON THOSE IMPACTED BY
DISASTERS I PERSONALLY VISITED
EVACUATION CENTERS BURN AREAS
AND LOCAL ASSISTANCE CENTERS TO
MAKE SURE THAT WE WERE FULLY
STAFFED AND DOING. THE JOB WE
NEED TO DO ANY WITH FIRE
SURVIVORS IN BOTH NORTHERN AND
SOUTHERN CALIFORNIA HERE FIRST
AND WHAT THEY NEEDED SO THAT I
COULD BE GUIDED. BY THEIR NEEDS
IN THE ACTIONS THAT I WAS TAKING
AS THE INSURANCE COMMISSIONER.
I'VE DIRECTED BY TEAM THAT TO
CAN IT WORK CONTINUE WORKING TO
HELP RESIDENTS NAVIGATE THE
CLAIMS PROCESS.
AND CONTINUE TO WORK TO DETER
SCAMS BY THOSE UNSCRUPULOUS
PEOPLE LOOK FOR WAYS TO TAKE
ADVANTAGE OF PEOPLE IN THEIR
TIME. OF NEED SURVIVORS ARE
ENTITLED TO INSURANCE BENEFITS
THAT THEY'VE BEEN LOYALLY PAYING
PREMIUMS FOR ALL THESE YEARS.
AND I AND MY TEAM ARE THERE TO
HELP CONSUMERS LET'S GO TO THE
NEXT SLIDE. SO.
LET ME UPDATE YOU.
ON THE MOST RECENT
A TOTAL INSURED LOSSES AT
FIGURES THAT WE HAVE AND I WANT
TO UNDERSCORE THESE ARE NOT
ESTIMATES.
A THESE ARE ACTUAL.
INSURED LOSSES BASED ON CLAIMS
THAT HAVE BEEN FILED. WITH
INSURANCE COMPANIES BY THE GRAND
TOTAL CURRENTLY IS TWELVE POINT
THREE. BILLION DOLLARS
ASSOCIATED WITH THE OCTOBER AND
DECEMBER TWENTY SEVENTEEN
WILDFIRES WITH ROUGHLY FOUR
FIFTHS OF THAT. COMING FROM THE
NORTH BAY FIRES AND STARTED
EARLY OCTOBER TWENTY SEVENTEEN
NOW WE'VE BROKEN THE NUMBERS OUT
ACROSS RESIDENTIAL PERSONAL
PROPERTY COMMERCIAL PROPERTY IN
OUR OWN OTHER LINES AND AS YOU
CAN SEE. A LARGER SHARE OF THE
TOTAL Q. OF LOSSES FALL IN THE
AREA OF RESIDENTIAL PERSONAL
PROPERTY BOTH IN TERMS OF THE.
ACCURATE LOSSES AS WELL AS THE
VOLUME OF CLAIMS THAT WHILE THE
COMMERCIAL PROPERTY AND AUTO
ANOTHER LINES MAKE UP. THE
REMAINDER BANG TERMS OF THE
TOTAL LOSSES WERE SIX THOUSAND
SIX HUNDRED FIFTY FIVE
RESIDENTIAL PROPERTY TOTAL
LOSSES. AND THREE HEARD TO
COMMERCIAL TOTAL LOSSES IN
TWENTY SEVENTY. OF THESE ARE
STAGGERING AND ON PRESIDENT
LOSSES BOTH THE CHAIRS NOTED
ABOUT THESE ARE MORE THAN JUST
NUMBERS BEHIND THESE NUMBERS ARE
REAL PEOPLE. WHOSE LIVES WERE
TREMENDOUSLY DEVASTATED AND
DISRUPTED BY THESE FIRES AND SO
AS WE LOOK AT THESE NUMBERS WE
ALSO HAVE TO KEEP IN MIND THE
HUMAN TRAGEDY THAT LIES BEHIND
THEM THE LIVES LOST. THE HOMES
LOST PEOPLE'S ENTIRE.
PRECIOUS MEMORIES AND
BELONGINGS LOST AS WELL RECORDS
A COMMON THEME AS YOU AND I MEET
WITH THE FIRE SURVIVORS IS A
DESIRE TO RETURN TO NORMALCY TO
REBUILD. THAT TO GET BACK TO
NORMAL LA AND THAT. THE IS A
VERY UNDERSTANDABLE DESIRE AND
ONE THAT WE SHARE AND ONE THAT
WE'RE COLLECTIVELY DOING
EVERYTHING WE CAN TO HELP PEOPLE
WITH. NOW ONE OF THE TOPICS OF
THIS HEARING OF COURSE IS OUT.
HOW THIS STAGE TO RESPOND TO THE
CHALLENGES OF AVAILABILITY AND
AFFORDABILITY OF HOMEOWNERS
INSURANCE COVERAGE?
ESPECIALLY FOR PEOPLE LIVING IN
HIGH RISK FIRE AREAS THAT THIS
HAS BEEN A GROWING CHALLENGE THE
IN A CERTAIN AREAS OF CALIFORNIA
PARTICULARLY THE SO CALLED
WILDLAND URBAN INTERFACE AREAS
IT'S A WILDLAND URBAN INTERFACE
AREAS. IN FACT THEY BURNED AREAS
THAT TRADITIONALLY HAVE BEEN
UNDERSTOOD BY INSURERS AND JUST
ABOUT EVERYONE AT ONE HOUSE AS
BEING RELATIVELY AT A LOWER RISK
OF FIRE. A THIS INCLUDES WHOLE
NEIGHBORHOODS LIKE THAT AND
COFFEE PARK I'M SURE YOU'RE ALL
FAMILIAR BICU HAD A CHANCE TO
VISIT WITH THE PHOTOGRAPHY
COMING OUT OF THAT.
I'VE VISITED IT LOOKED LIKE A
WAR ZONE AN ENTIRE NEIGHBORHOOD
WIPED OUT.
AS WELL AS A SECOND
NEIGHBORHOOD FOUND GROVE IN
THOSE NEIGHBORHOODS A STARKLY
HAVE BEEN VIEWED AS MEDIUM ARE
GENERALLY LOWER FIRE RISK THAT
IS NEW. AND SOMETHING THAT WE
NEED TO TAKE INTO ACCOUNT AS I
KNOW THAT THE INSURERS WERE. SO
LAST YEAR OF I DIRECTED THE
DEPARTMENT OF INSURANCE TO
PREPARE A EPORT. ON THE GROWING
PROBLEM OF FIRE INSURANCE
AVAILABILITY AFFORDABILITY AND
TO MAKE RECOMMENDATIONS FOR
ADDITIONAL LAWS TO ADDRESS THIS
PROBLEM. THAT WE RELEASED A
REPORT EARLIER THIS YEAR AND WE
SENT A COPY DAHLE UNDER TWENTY
MEMBERS OF THE LEGISLATURE
KNOWLEDGE JUST PARTIES AND WE
PROVIDE THE COMMITTEE WITH AN
ADDITIONAL. COPY NO REPORT MAKES
A A NUMBER OF FINDINGS ONE IS
OVER THE PAST TWO DECADES
WILDFIRES HAVE CAUSED
SIGNIFICANT DAMAGE IN THE
WILDLAND URBAN YOUR FACE
COUNTIES WHICH IS DEFINED AS THE
AREAS OR HOMES ARE INTERMIXED IN
THE CITY OF WILDLAND VEGETATION
SUCH AS FOR SOME BRUSH NOW. THIS
INCLUDES PRINCIPALLY THE SIERRA
NEVADA MOUNTAIN RANGE
THE SIERRA FOOTHILLS AND ALSO
THE COASTAL RANGE THAT NORTHERN
SOUTHERN CALIFORNIA WHERE THERE
ARE NUMEROUS CANYONS AND OTHER
FEATURES. AREAS LIKE THIS
ACTUALLY EXIST ALL OVER
CALIFORNIA JUST MORE
CONCENTRATED IN PARTICULAR AREAS
IN PARTICULAR COUNTIES.
NOW THE PROXIMALLY THIRTEEN
POINT SIX MILLION HOMES IN
CALIFORNIA.
THERE'S AN ESTIMATED THREE POINT
SIX MILLION HOMES IN THE
WILDLAND URBAN INTERFACE
WITH MORE THAN ONE MILLION OF
THOSE HOMES.
IN WATER DESCRIBED AS HIGH OR
VERY HIGH RISK OF FIRE AREAS
ACCORDING TO THE INSURERS
MODELS.
MORE THAN HALF THE COUNTIES IN
THE STATE HAVE AT LEAST TWENTY
FIVE PERCENT OF THEIR HOMES IN
THIS CATEGORY OF HIGH OR VERY
HIGH RISK.
AND DUE TO DROUGHT CLIMATE
CHANGE OTHER FACTORS THAT WE CAN
ANTICIPATE AN OPTICALLY THINK IN
THE WAKE OF THE TWENTY SEVENTEEN
FIRES WE CAN ANTICIPATE. THAT
INSURERS WILL BE UPDATING THE
RISK MODELS AND MORE HOMES AND
MORE AREAS THE STATE. WILL BE
RATED AT HIGH OR VERY HIGH RISK
NOW OVER THE PAST THREE YEARS
THAT MY DEPARTMENT HAS RECEIVED
AN INCREASED NUMBER OF
COMPLAINTS FEEDBACK AND OTHER
EVIDENCE FROM CONSUMERS.
CONSUMER GROUPS
A HANDOUT. FROM ABOUT. OF PUBLIC
OFFICIALS LOCAL OFFICIALS AND
OTHER STAKEHOLDERS REGARDING
HOMEOWNERS INSURANCE
AVAILABILITY NOW HIRES FIRES IN
THE WILDLAND URBAN INTERFACE
AREA. VERTICALLY FROM ADMITTED
CARRIERS A NUMBER OF YOU HAVE
MADE THE DISTINCTION BETWEEN THE
ADMITTED MARKET WHICH IS FULLY
REGULATED THE SURPLUS LINES
MARKET WHICH IS NOT WHICH IS
IMPORT MARKET IN THE FAIR PLAN
WHICH IS THE INSURER OFLAST
RESORT. THAT OUR FOCUS HAS BEEN
ON ALL THREE BUT PRINCIPALLY BY
THE AVAILABILITY OF THE
INSURANCE FROM THE ADMITTED
MARKET IN THE COMMON THEME OF
THESE COMMUNICATIONS WHETHER
IT'S COMPLAINTS FROM CONSUMERS
ARE LOCAL PUBLIC OFFICIALS
RATHER STAKEHOLDERS. IS THAT IT
IS BECOMING INCREASINGLY
DIFFICULT TO OBTAIN ADMITTED
KOMMER ADMITTED RESIDENTIAL CARE
COVERAGE IN THESE AREAS.
AND PRICES ARE GOING UP AS WELL
SO LET'S GO TO THE NEXT SLIDE.
NOW.
WE GO UP TO THE NEXT ONE AFTER
THAT ARE THERE WE GO HERE IT IS.
IT'S COMING.
SO ONE OF THE FINDINGS IN OUR
REPORT I IT WAS TO LOOK AT THE
QUESTION OF NINE RENEWABLES
BECAUSE THAT WAS THE COMPLAINT
WE WERE GETTING FROM SOME PEOPLE
WAS I HAD INSURANCE WITH ENSURE
ACTS. AND THE NEXT YEAR THEY
DIDN'T RENEW ME.
SO SPECIFICALLY LOOKING AT THE
YEARS TWENTY FIFTEEN AND TWENTY
SIXTEEN WHICH WERE THE LATEST
YEARS FOR WHICH WE HAD DATA. A
LOT THERE WAS A FIFTEEN PERCENT
INCREASE
IN NON RENEWALS IN THE WILDLAND
URBAN INTERFACE COUNTIES THAT
WAS A HIGHER PERCENTAGE OFHIGH
IN VERY HIGH. A RISK
SO I THINK THAT'S IT THE
IMPORTANT A FIGURE TO KEEP IN
MIND THAT DOESN'T MEAN THAT ALL
FIFTEEN PERCENT. I COULDN'T FIND
INSURANCE A BUT IT DOES MEAN
THAT THEIR CURRENT CARRIER SAID
WE'RE NOT RENEWING YOU YOU'VE
GOT TO GO LOOK SOME PEOPLE FOUND
ADMITTED CARRIER INSURANCE SOME
PEOPLE WANT THE SURPLUS LINES
SOME PEOPLE. WENT TO THE FAIR
PLAN.
NOW LET ME JUST PAUSE A MOMENT
TALK A LITTLE BIT ABOUT THE FAIR
PLAN OVER FORTY YEARS AGO THE
LIST LEGISLATURE ENACTED A LAW
SIGNED BY THEN GOVERNOR RONALD
REAGAN.
TO CREATE A NONPROFIT FIRED SURE
OF LAST RESORT CALLED THE FAIR
PRESS PLAN WHICH YOU WRITE FIRE
INSURANCE FOR ANY HOMEOWNER IN
RURAL. OR URBAN AREAS
WHO COULD NOT FIND FIRE
INSURANCE ON THE PRIVATE MARKET.
THE FAIR PLAN IS THE CANARY IN
THE COAL MINE ONE IMPORTANT
DECATUR OF THE AVAILABILITY OR
LACK OF AVAILABILITY OF HOME
INSURANCE FROM MINUTE COMMERCIAL
CARRIERS. IS CHANGES IN THE
NUMBER OF FIRE INSURANCE
POLICIES WRITTEN BY THE FAIR
PLAY SO IT BEARS NOTE I THINK
WHAT THOSE NUMBERS ARE.
AS OF TWENTY SIXTEEN THE FAIR
PLAN HAD ABOUT A HUNDRED TWENTY
ONE THOUSAND FIVE HUNDRED SIXTY
DWELLING POLICIES IN FORCE
WITH ONLY THIRTY EIGHT THOUSAND
ONE HUNDRED EIGHTY SEVEN OF
THEM.
OR THIRTY ONE POINT FOUR PERCENT
WRITTEN IN THE HIGH RISK FIRE
AREAS OF THE STATE.
BUT PEOPLE UNDERSTAND ABOUT THE
FAIR PLAY AND IS THAT THAT LYING
SURE THE FAIR PLAN POLICIES ARE
ACTUALLY WRITTEN IN LARGE
URBANIZED AREAS LIKE LOS ANGELES
WERE SADLY THERE INCIDENTS OF
OUR SINS AND OTHER KINDS OF
FIRES A BECAUSE. IT MEDICARE'S
TO DECIDE THAT'S IS TOO MUCH
RISK. AND SO OF THE HUNDRED
TWENTY ONE THOUSAND FIVE SIXTY
TOTAL FAIR PLAN POLICIES ONLY
THIRTY EIGHT THOUSAND ONE
HERSELF EIGHT HUNDRED EIGHTY
SEVEN. ARE IN THE RURAL HIGH
RISK FIRE AREAS HOWEVER A FROM
TWENTY TWELVE TO TWENTY SIXTEEN
THE FAIR PLAN HAS INCREASED ITS
WRITINGS IN THE HIGH RISK FIRE
AREAS. WHICH INDICATES THAT
SOMEONE HOMEOWNERS ARE NOT
FINDING AVAILABLE INSURANCE IN
THAT TRADITIONAL MARKET AND FOR
THOSE HOMEOWNERS IT IS A PROBLEM
IT IS A CHALLENGE. AND THERE'S A
HIGH PERCENTAGE OF THOSE HOMES
IN PARTICULAR COUNTIES SO THIS
IS BEING FELT MOST ACUTELY IN
PARTICULAR COUNTIES AS WELL.
KNOW OUR DATA SHOWS THE FAIR
PLANTS NEW BUSINESS WRITINGS IN
THE HIGH RISK FIRES ALMOST
DOUBLED WELL RENEWALS IN THESE
AREAS INCREASED BALLOTS FOR A
THIRTY PERCENT LET'S GO TO THE
NEXT SLIDE.
SO LET ME REPEAT THAT AGAIN.
THEIR NEW WRITINGS ALMOST
DOUBLED.
WENT UP BY FORTY ONE PERCENT.
AND THEIR ENEWALS INCREASED BY
THIRTY PERCENT WHICH MEANS THAT
THOSE THAT HAD THE FAIR PLAN.
THAT WE SAW AN INCREASE IN THE
PEOPLE STICKING WITH THE FAIR
PLAN BECAUSE THEY COULDN'T FIND
OTHER INSURANCE OUTSIDE OF THE
FAIR PLAN.
SO.
IT MARCH TWENTY SIXTEEN I
TESTIFIED BEFORE THE SENATE
INSURANCE COMMITTEE AND AYE A
TESTIFIED AT THAT TIME THAT FOUR
YEARS OF DROUGHT COMBINED WITH
MORE HOMES BUILT IN HIGH RISK
FIRE AREAS. WITH INSURERS USE
INCREASINGLY SOPHISTICATED
FORTRESS MODELS HAD RESULTED IN
HIGHER PRICES AND DECREASED
AVAILABILITY OF HOMEOWNERS
INSURANCE HIGH RISK FACTORS THAT
WASN'T TWENTY SIXTEEN THAT WAS.
EIGHTEEN MONTHS BEFORE LAST
YEAR'S EVENTS
CERTAINLY LAST YEAR'S EVENTS
UNDERSCORE THAT THIS PROBLEM IS
CONTINUING TO GROW. BY AND WE
SEE MORE INSURERS CHOOSING TO
NOT RENEW COVERAGE FOR EXISTING
POLICYHOLDERS WHOSE HOMES FACE A
HIGH RISK OF FIRE. IN SOME
INSURERS CHOOSING NOT TO WRITE
NEW HOMEOWNERS POLICIES IN LARGE
SWATHS OF THE HIGH RISK. AREAS
AND WE KNOW FROM EVALUATING
UNDERWRITING GUIDELINES FROM
CONSUMER COMPLAINTS THAT
INSURERS ARE BEGINNING TO AVOID
HIGH RISK FIRE AREAS OR LIMITING
THE NUMBER POLICIES ARE WILLING
TO WRITE. IN SUCH AREAS. NOW. UP
BECAUSE A IT EACH INSURED
THEMSELVES DECIDES WHAT THE RISK
APPETITE IS AND WHERE THEY GONNA
WRITE HOW MUCH THEY'RE GOING TO
WRITE. THAT THERE ARE NONE THE
LESS OPPORTUNITIES FOR HOMEOWNER
NON RENEWED BY ONE INSURER TO
POTENTIALLY FIND INSURANCE
COVERAGE FOR ANOTHER SHARE. WITH
A DILIGENT SEARCH.
HOWEVER.
SOME CONSUMERS ARE FINDING THEY
CAN'T FIND INSURANCE LIMITED
MARKET. AYE AND IF YOU HAVE A
MORTGAGE LIKE MOST OF US DO. YOU
HAVE TO HAVE COVERAGE MATTER
WHERE YOU LIVE.
AND CURRENT LAW DOES GIVE
INSURERS BROAD LATITUDE IN
DECIDING WHETHER TO WRITE FOR
CERTAIN RISKS. INCLUDING THE
ABILITY TO KLEIN WRITING
POLICIES FOR HOMES AND
BUSINESSES AND THEY CAN CHARGE
MORE FOR HIGHER RISK TO ACCOUNT
FOR THAT EXPECTED LOSSES
ASSOCIATED. WITH THOSE RECEIPTS
IMPORTERS STAND THAT IS THE
NATURE OF INSURANCE IT'S A
PRODUCT THAT'S DESIGNED AT TO
ENCOMPASS RISK IN THE PRICED
RELATED. TO RISK.
TWELVE CALIFORNIA COUNTIES HAVE
MORE THAN FIFTY PERCENT OF THEIR
HOMES RATED AS HIGH OR VERY HIGH
RISK. OF WILDFIRE BY THE TWO
PRIMARY WILDFIRE RISK MODELS
USED BY INSURERS FOR EXAMPLE.
EIGHTY PERCENT OF THE HOMES IN
TWELVE THE COUNTY ARE LOCATED IN
THE HIGHER VERY HIGH RISK AREA.
pSIGNIFICANT PERCENTAGE OF HOMES
IN THESE CATEGORIES SO THERE IS
A CONCENTRATION OF THIS
PHENOMENA WITHIN CERTAIN
GEOGRAPHIC AREAS IN CERTAIN.
COUNTIES NOW. I DIRECTED AT MY
DEPARTMENT TAKE A A NUMBER OF
STEPS A BEFORE AND AFTER THE
MARCH TWENTY SIXTEEN THAT I
SENATE HEARING. A ONE WAS A
DIRECTED THAT WE PARTICIPATE
THAT IN THE GOVERNOR'S TREE
MORTALITY TASK FORCE INSURANCE
SUB GROUP. AND THIS GROUP IS
BEEN CHARGED WITH IDENTIFYING
INSURANCE ISSUES CAUSED BY THE
MASSIVE NUMBER OF DYING TREES IN
AREAS A CALIFORNIAN INCREASE
RISK OF WILDFIRE. THAT TASK
FORCE WITH OUR PARTICIPATION IS
MEETING NOW FOR MORE THAN TWO
YEARS SINCE IDENTIFIED A NUMBER
PROBLEMS IN SOME PROPOSED
SOLUTIONS.
HOWEVER WITHOUT NEW LAWS
IMPLEMENTATION OF THE TASK
FORCE'S RECOMMENDATIONS REMAINS
A CHALLENGE THAT AS THEIR
PROPOSED SOLUTIONS CURRENTLY
RELY ON INSURERS MAKING
VOLUNTARY CHANGES. IN THEIR
OPERATIONS AND THEIR DECISION
MAKING.
SO THERE ARE LIMITATIONS THEN
BY LESS LEGISLATURE ACTS WITH
REGARD TO THE TASK FORCE'S
RECOMMENDATIONS I ALSO DIRECTED
MY DEPARTMENT UNDERTAKE ITS OWN
ANALYSIS AND COME UP WITH SOME
PROPOSED SOLUTIONS AS WELL IN
THOSE ARE CONTAINED IN THE
REPORT THAT WE RELEASED. EARLIER
THIS YEAR AT SO I'VE SHARED WITH
YOU AYE SOME OF THE RESULTS.
I THINK IT'S ALSO IMPORTANT TO
NOTE THAT BASED ON CONSUMER
COMPLAINTS STEMMING FROM A
RENEWAL ISSUES WE'RE ALSO SEEING
CONSUMER COMPLAINTS OF LARGE
PREMIUM INCREASES IN THOSE ROSE
SIGNIFICANTLY FROM TWENTY TEN TO
TWENTY SIXTEEN. THAT PARTICULAR
IN THE ZIP CODES DESIGNATED BY
CAL FIRE AS HAVING THE GREATEST
RISK OF WILDFIRE.
WITH REGARD TO COMPLAINTS
FORGETTING ABOUT INCREASE
PREMIUMS THE CALIFORNIA
DESIGNATED ZIP CODES MAKE UP
MORE THAN SEVENTY PERCENT OF
THEIR GEOGRAPHIC LOCATION OF
THOSE COMPLAINTS.
SO WE HAVE SEEN SEVERAL MAJOR
INSURERS BEGINNING TO PULL BACK
FROM READING NEW BUSINESS.
AND ALSO DECLINING TO RENEW.
WE'VE SEEN SOME INCREASE IN
FAIR PLAN WRITING AND WE'VE SEEN
SOME INCREASE IN WRITING BY THE
SURPLUS LINES INSURERS.
NOW THE LEGISLATURE IS NOT
ENACTED ANY SPECIFIC STATURE
STANDARDS TO RESTRICT THE USE OF
OR ENSURE THE ACCURACY OF THESE
WILDFIRE RISK MODELS THAT THE
INSURERS ARE USING.
AND THERE'S NO MECHANISM IN
PLACE FOR CONSUMERS TO APPEAL
THESE MODELS SO ONE OF OUR
RECOMMENDATIONS IS THAT YOU DO
EXACTLYTHAT. AYE THAT YOU ABOUT
REQUIRE THE MODELS TO BE FILED
WITH THE DEPARTMENT.
AND YOU GIVE THE DEPARTMENT
AFTER YOUR REVIEW AND APPROVE
THEM WHAT'S PARTICULARLY
FRUSTRATING FOR HOMEOWNERS THAT
IS WHEN THEY TAKE STEPS THAT
THEIR LOCAL FIRE OFFICIALS HAVE
ENCOURAGED THEM TO TAKE.
TO CREATE MORE DEFENSIBLE SPACE
AND OTHERWISE MAKE THEIR HOMES
MORE DEFENSIBLE FROM FIRE THAT
THOSE PARTICULAR MITIGATION
MEASURES ARE NOT IN SOME MODELS
REFLECTED BY THE MODELS RICH
SCORE. IN SOME CASES EFFORTS
COMMUNITIES ARE TAKING TO BETTER
DEFEND THEMSELVES FROM FIRE ARE
ALSO NOT BEING TAKEN INTO
ACCOUNT. A BY THE MODELS HENCE
OUR RECOMMENDATION TO YOU ARE
THAT THE MODELS BE REQUIRED TO
BE FILED AND THAT WE BE GIVEN
THE OPPORTUNITY. I TO REVIEW
THEM THAT ACCORDINGLY. NOW I
THINK THE OTHER.
THAT THING THAT WE'VE DONE AS
WELL AS WE'VE TAKEN SOME
IMPORTANT STEPS WITH REGARD THE
FAIR PLAN TO MAKE SURE. I IT'S
MORE WIDELY KNOWN THAT IT EXISTS
THAT WE MAY ASK THE FAIR PLAYING
TO MAKE SIGNIFICANT APPROVED ITS
TO ITS POLICIES IN MARKETING.
BUT CONDUCTED OUTREACH.
DEMI VAST AND IN FACT WE
SPONSORED LEGISLATION CARRIED BY
SENATOR MCGUIRE THAT ACTUALLY
REQUIRES THAT INSURERS AND
AGENTS AND BROKERS TO INFORM
CONSUMERS ABOUT THE
AVAILABILITY.
OF THE FAIR PLAN WE'RE ALSO
ENCOURAGING INSURERS TO WRITE
WHAT'S CALLED DIFFERENCES N
CONDITIONS COVERAGE WHICH SITS
ON TOP OF THE FAIR PLANTS UP A
HOMEOWNER. HAS ONLY THE FAIR
PLAN TO LOOK TO FOR FIRE
INSURANCE WE'RE ASKING INSURERS
TO WRITE COVERAGE ON TOP OF THAT
SO HOMEOWNERS HAVE FULLY
AVAILABLE. INSURANCE AVAILABLE
TO THEM MISSIONER JONES COULD I
ASK YOU ARE FREE TO A CLOSE.
I I SHOULD HAVE REALIZED A GOOD
POLITICIAN HAS A LOT TO SAY.
GOOD INSURANCE COMMISSIONER HAS
A LOT TO SAY THERE YOU GO THAT'S
EXACTLY WHAT I MEANT.
BUT IF YOU COULD JUST GIVE US.
THE SORT OF.
THE ESSENCE OF WHAT YOU WOULD
LIKE US TO TAKE INTO ACCOUNT AS
WE GO FORWARD WONDERFUL SO LET
ME JUST DRILL DOWN TO SOME
RECOMMENDATIONS THAT WE'VE MADE.
IN OUR REPORT OUTSIDE THAT
WOULD REQUIRE LEGISLATION TO
ENCOMPASS.
ONE IS THOUGHT WE HAVE
SUGGESTED I THAT THE LEGISLATURE
REQUIRE INSURERS TO OFFER
HOMEOWNERS INSURANCE IN THE
WILDLAND URBAN INTERFACE IF%
SPECIFIED PROVEN MITIGATION
IMPROVEMENTS. HAVE BEEN MADE BY
THE HOMEOWNER TO THE DWELLING
STRUCTURE AND THE PROPERTY.
AND.
THAT'S STANDARD OF COURSE WOULD
BE DEFINED BY YOU THE
LEGISLATURE IT CAN BE AS HIGH AS
YOU DEEM APPROPRIATE BUT THE
NOTION WOULD BE IF HOMEOWNERS
MEDIA STANDARD. THEN THEY SHOULD
BE OFFERED INSURANCE NO
ALTERNATIVE TO THAT WOULD BE TO
SAY THE INSURER LOOK.
YEAH I AS AN ALTERNATE ACTUALLY
OFFERING THE INSURANCE AT A
MINIMUM OFFER DIFFERENCES IN
CONDITIONS POLICY SO THAT
SOMEONE MEETS A STANDARD OF
MITIGATION.
AND YOU'RE NOT GOING TO OFFER
THEM A HOME INSURANCE THAT THEY
GET INSURANCE FROM THE FAIR PLAN
AT LEAST GIVE THEM DIFFERENCES
IN CONDITIONS COVERAGE SO THEY
HAVE FULL INSURANCE A SECOND
RECOMMENDATION IS TO REQUIRE
INSURERS TO OFFER MITIGATION
PREMIUM CREDIT. FOR THOSE
PROPERTY OWNERS ARE COMMUNITIES
THAT HAVE UNDERTAKEN PROVEN
MITIGATION EFFORTS AGAIN THE
LEGISLATURE WOULD DEFINE THOSE
YOU COULD FIND THAT MITIGATION
STANDARDS HIGH AS YOU WANT.
OTHER WE THINK THE NOTION OF A
PRIMA CREDIT MAKE SENSE BOTH AS
AN INCENTIVE BUT ALSO TO
RECOGNIZE THOSE HOMEOWNERS IN
COMMUNITIES THAT ARE DOING
THINGS TO MAKE THEMSELVES MORE
DEFENSIBLE. FROM FIRES I
MENTIONED.
REQUIRING INSURERS TO FILE
OBTAIN APPROVAL OF THE LIVE
VIRUS BOTTLES A FOURTH
RECOMMENDATION IS AN APPEALS
PROCESS
FOR HOMEOWNERS.
A FORD INSURERS ADVERSE DECISION
TO NOT RENEW CANCEL IS FINALIZED
RIGHT NOW THERE'S NO REAL
MECHANISM FOR HOMEOWNERS TO
APPEAL THAT OTHER THAN TO OUR
DEPARTMENT AND WE HAVE VERY
LIMITED AUTHORITY WITH REGARD TO
INSURERS UNDERWRITING. SOBRE
SUGGESTING AN APPEAL MECHANISM
FIFTH WE THINK THAT THERE BE
SOME REAL VALUE IN TERMS OF
STABILIZING THE RATING STRUCTURE
BY.
AUTHORIZING US TO GATHER
INDUSTRY WIDE LOST DATA.
ASSOCIATED A WITH THESE FIRES
AND MAKE THAT A DATA AVAILABLE
TO LL MARKET PARTICIPANTS IN
ORDER TO MAKE SURE THAT
HOMEOWNERS INSURANCE RATES IN
PREMIUMS ARE ADEQUATE. BUT NOT
EXCESSIVE FOR THE UNDERLYING
WILDFIRE RISK SO THESE ARE SOME
OF OUR A PRINCIPLE
RECOMMENDATIONS IN OUR REPORT.
AND.
LET ME JUST CLOSE BY SAYING
THAT I BELIEVE THESE
RECOMMENDATIONS ARE A VERY
BALANCED AND NUANCED LA I'M
ATTENTIVE TO THE CONCERNS OF
SOME OF YOU HAVE RAISED. ABOUT A
TAKING A BALANCED APPROACH HERE
THAT WHICH IS NECESSARY TO MAKE
SURE THAT WE CONTINUE TO HAVE A
ROBUST INSURANCE MARKET. THAT
WE'RE VERY PROUD OF THE
DEPARTMENT DIED THAT THE MARKET
IS ROBUST THAT WE'RE VERY PROUD
THAT WE'VE SEEN IN EXPANSION.
IN A COVERAGE.
OVER THE LAST NERVE YEARS FOR
EXAMPLE ALL STATE CAME BACK IN
THE MARKET THE OTHER YEAR AFTER
BEING OUT OF THE MARKET FOR OVER
A DECADE. AYE SO WE WANT TO MAKE
SURE THE INSURERS ARE HERE WE
ALSO WANT TO MAKE SURE. THAT
CONSUMERS WHEN THEY'RE TAKING
STEPS TO MITIGATE RISK ARE A
GIVEN THE OPPORTUNITY THEN TO
HAVE INSURANCE SO THOSE ARE MY
CLOSING THOUGHTS AND I
APPRECIATE YOUR KIND ATTENTION.
THANK YOU VERY MUCH I THINK VERY
HELPFUL IN A COURSE AT THE END
OF THE DAY IT MIGHT COME DOWN
TO.
A DISCUSSION ABOUT WHAT TO
ADEQUATE AND NOT EXCESSIVE.
AND I'M SURE THOSE WILL BE
DISCUSSIONS WILL HAVE GOING
FORWARD.
DEPUTY DIRECTOR OF CAL FIRE
MATTHEW RUSH MINUTES OUR NEXT
SPEAKER AND GIVEN THAT HE IS NOT
A IN THE POLITICAL WORLD BUT AS
A FIREFIGHTER EXPECTED HE MIGHT
BE ABLE TO KEEP WITHIN THAT. TEN
MINUTE PERIOD AND THEN WE'LL
OPEN IT UP FOR FOR QUESTIONS WAS
ADAM.
I I SHARE THAT ABSOLUTE OTHER
NOMENCLATURE SO I'M TRYING TO BE
VERY SENSITIVE TO THE FACT THAT.
WE DO HAVE SOME TIME CONSTRAINTS
OF I'M SURE GO AHEAD I THINK
INITIATE THAT.
CHAIRS MEMBERS OF THE COMMITTEE
MATTHEW REISMAN CAL FIRE ON THE
ASSISTANT DEPUTY DIRECTOR FOR
RESOURCE PROTECTION IMPROVEMENT
AND.
NO ABSOLUTELY DON'T MIND
YIELDING TIME TO A COMMISSIONER
JONES IN IN CERTAINLY APPRECIATE
HIS HIS COMMENT. AND THE SUPPORT
THAT THEY PROVIDED A OVER THE
LAST FEW YEARS IN REGARD TO
INSURANCE AND OUR INVOLVEMENT AT
THE DEPARTMENT AND WITH THE TREE
MORTALITY TASK FORCE TO TRY TO
DRILL DOWN.
ON SOME OF THOSE.
QUESTIONS AND CONCERNS
REGARDING INSURANCE SO WE SHOULD
THE OPPORTUNITY TO TALK TO THEY
BRIEFLY ABOUT A DROUGHT CLIMATE.
A CLIMATE CHANGE AND IN FIRE AND
THE EFFECTS THAT'S HAVING ON ON
OUR FIRES THAT WE'RE SEEING
ACROSS THE STATE. AND LITTLE BIT
ABOUT FOR STEALTH AND FIRE
PREVENTION ACTIVITIES AND AND
WHAT WE DO AND ARE TRYING TO DO
TO ADDRESS THE PROBLEM.
TO BEGIN WITH OBVIOUSLY WE'VE
SEEN SIGNIFICANT CHANGES ACROSS
THE LANDSCAPE OF THE TREE
MORTALITY IS IS RELATIVELY
UNPRECEDENTED.
IN RECENT HISTORY OF THAT LEVEL
OF MORTALITY.
OBVIOUSLY THAT THE HOTTER DRIER
AREAS.
OR WHERE WE'RE SEEING THE
GREATEST LEVEL OF MORTALITY
WE'RE SEEING VEGETATION CHANGES
NOW ACROSS THE LANDSCAPE THAT
MAY NOT BECOME.
THE RESTORED BACK TO FOREST'S
THESE THESE ARE AREAS THAT MAY
END UP BRUSH DOMINATED HABITATS
IN GRASS.
IT'S NOT NECESSARILY BAD BUT
IT'S DIFFERENT AND IT'S A CHANGE
IN THE WILDLIFE POPULATIONS OUT
OF THEM THAT'LL DEPEND ON THOSE
SITES WILL CHANGE.
AS WELL AS THE POTENTIAL FOR
SOME WATER QUALITY IMPACTS IN
THOSE OTHER BENEFICIAL USES OUT
WILL RELY ON THOSE THOSE AREAS.
.
IN REGARD THE FIRE SEASON THAT
WE HAD TWO THOUSAND SEVENTEEN I
THINK.
ARCHER JACKSON DIDN'T AND
OUTSTANDING JOB SUMMARIZING
THAT'S WHY WON'T SPEND A LOT OF
TIME RE GOING THROUGH SOME OF
THOSE STATISTICS BUT I DO THINK
IT'S IMPORTANT THAT WE FOCUS ON
CLIMATE CHANGE IN THE WEATHER
CHANGES. THE RECENT.
THE NEW WEATHER CHANGES THAT WE
HAVE SEEN
OBVIOUSLY THE MEGA FIRES IS
RECALLING THEM ARE NOT.
NEW IT'S THE NEW NORMAL.
BUT. THE TYPES OF WEATHER THAT
WE'RE SEEING AFFILIATED THAT'S
DRIVING THESE FIRES AND MAKING
THEM LAW LARGE AND DAMAGING. IS
A LITTLE DIFFERENT WE HAD A
THIRTEEN DAY SANTA ANA WIND
EVENT DOWN IN SOUTHERN
CALIFORNIA WHICH IS THE FIRST
TIME WE'VE SEEN THAT LEVEL OF
WIND. OVER THAT MANY DAYS
CAUSING RED FLAG WARNINGS AND
AND IN HISTORY.
THE WIND EVENT THAT WE HAD UP
UP NORTH.
TOWARDS SANTA ROSA THOSE
REFERRED TO AS A MOUNTAIN WAVE.
I'M NOT OF NEUROLOGISTS BUT I
CAN TELL YOU THAT IT'S A RESULT
OF A HIGH PRESSURE SYSTEM OVER
THE CENTRAL VALLEY. THAT
ULTIMATELY PUSHES.
THAT WIND OVER THE THE THE
HILLS GOING TOWARD SANTA ROSA IS
THAT NGUYEN BECOMES IN ALIGNMENT
WITH THE DRAINAGE IS IT
INCREASES IN WIND SPEED AND WE
SAW WIND SPEEDS AND NORTHERN BAY
AREA THAT WE HAVEN'T SEEN. OUR
SOME OF THAT THE HIGHEST WIND
SPEEDS WE'VE WE'VE EVER SEEN SO.
SIGNIFICANT A WIND EVENTS
AFFILIATED WITH THESE FIRES.
PART OF THE SOLUTION AND WHAT
WERE FOCUSING.
UP PROVIDING A LOT OF FOCUS ON
IS TAKING A LANDSCAPE LEVEL
APPROACH
WE KNOW THESE FIRES ARE BURNING
OUT OF OUR WILD LANDS OUT OF ARE
FORCED INTO OUR CITIES SO IT'S
IT'S COMPLETELY REASONABLE THAT
WE WOULD TAKE A LANDSCAPE
APPROACH AND TRY TO ADDRESS SOME
OF THESE ISSUES. COME WERE WHAT
THEY WERE WORKING IN THE UPPER
WATERSHEDS IN IN THE HEADWATERS
AREAS CONDUCTING FORCE
MANAGEMENT ACTIVITIES SPENDING
PRESCRIBED FIRE.
IN THE MIDDLE WATER SHEDS WERE
WERE WERE FOCUSING IN WILDLAND
URBAN INTERFACE SHARE AREAS OF
FIRE PREVENTION ACTIVITIES
AROUND OUR LOWER REACHES OF OUR
WATERSHEDS WHERE WE'RE COMBINING
FOR STEALTH AND FIRE PREVENTION
ACTIVITIES ULTIMATELY TO HELP
ADDRESS THE ISSUE. WE KNOW WE
HAVE THE ABILITY TO CHANGE.
THE OUTCOME OF THESE FIRES
THROUGH FORCE MANAGEMENT AND
ENFORCED HEALTH ACTIVITIES AND
FIRE PREVENTION. AND.
THAT IS OUR FOCUS WERE VERY
MUCH FOCUSED ON INCREASING THE
PACE AND SCALE OF THESE
ACTIVITIES.
WE'RE VERY FORTUNATE TO HAVE.
CALIFORNIA CLIMATE INVESTMENT
OR CAP AND TRADE DOLLARS TO HELP
SUPPORT SOME OF THESE LANDSCAPE
LEVEL ACTIVITIES AND.
WE WILL CONTINUE BEING TO BE
ENGAGE THEIR.
IN REGARD TO HIGH FIRE RISK AND
WHETHER OR NOT IT'S REACHED
PERMANENT CATASTROPHIC.
PROPORTIONS I THINK IT'S
IMPORTANT TO REALIZE THAT
CERTAIN AREAS OF THE STATE ARE
VERY HIGH AND FIRE RISK.
IS FAR IS A WORD PERMANENCE
GOES.
WE HAVE THE ABILITY TO CHANGE
THE FIRE ENVIRONMENT AROUND
STRUCTURES THROUGH FIRE
PREVENTION ACTIVITIES WE KNOW
THIS BY DOING THE DEFENSIBLE
SPACE BY STRUCTURE HARDENING BY
ALL THOSE THINGS THAT WE DO IN
FRE PREVENTION. HOT WE HAVE THE
ABILITY TO CHANGE THAT
ENVIRONMENT. AND THAT ULTIMATELY
CREATES HOMES AND COMMUNITIES.
IN A MORE SAFE CONDITION AND
CAN REDUCE THE FIRE RISK
AFFILIATED WITH THAT. I THINK
IT'S IMPORTANT TO RECOGNIZE THAT
BUT WHEN WE TALK ABOUT FIRE
PREVENTION VIRTUALLY ALL OF THE
PROGRAMS THAT WE HAVE AND CAL
FIRE TOUCH ON FIRE PREVENTION.
WHETHER IT'S OUR FORCE
MANAGEMENT ACTIVITIES REDUCING
FUELS PRESCRIBED FIRE FARTHER
DOWN THE WATERSHEDS WHAT WE'RE
DOING.
MORE FIRE ENGINEERING IN
COMMUNITIES.
FIRE PREVENTION GRANTS THAT
WERE PROVIDING THE LOCAL FIRE
SAFE COUNCILS DEFENSIBLE SPACE
INSPECTIONS A PUBLIC EDUCATION
AND OUTREACH ALL OF THIS THE
PROGRAMS WE HAVE TOUCH ON SOME
COMPONENT OF FIRE PREVENTION SO.
WHEN YOU THINK ABOUT A THAT
APARTMENT AND AND WHAT ROLE WE
HAVE BEEN FIRE PREVENTION. IT'S
VERY MUCH WHAT WE DO IT'S NOT
JUST THE ACTIVITIES BEFORE THE
FIRE IT'S DURING THE FIRE IMPOSE
FIRE IT'S VERY MUCH A CYCLE THAT
WE USE TO ANALYZE AND
CONTINUALLY MONITOR FIRE
CONDITIONS.
AS THEY EXIST WE USE IT AND
PLANNING DURING A GOING FIRE AND
WE ALSO USE IT IN OUR FOLLOW UP
WHEN WE'RE DEALING WITH WATER BY
WATERSHED EMERGENCY RESPONSE
EFFORTS AS WELL AS DAMAGE
ASSESSMENT GOING INTO AREAS.
DETERMINING WHAT THE MEDICATIONS
WERE ON THOSE HOMES THAT WERE
DAMAGED OR DESTROYED AND AND AND
ULTIMATELY ANALYING THE
EFFECTIVENESS OF THOSE
MEDICATIONS.
.
IN THE CONTEXT OF INSURANCE.
ONE OF THE AREAS THAT THE
DEPARTMENT HAS FOCUSED ON ABOUT
TWO AND A HALF YEARS AGO OR TWO
YEARS AGO OR SO WITHIN THE
CONTEXT OF THE TREE MORTALITY
TASK FORCE. SOME OF THE COUNTY
CONSTITUENTS OR THE COUNTY
REPRESENTATIVES HAD COME FORWARD
AND RECOGNIZED OR OR VOICED A
CONCERN THAT SOME OF THEIR
CONSTITUENTS WERE HAVING TO
CHALLENGES WITH INSURANCE.
WE SAW AND AND VERY MUCH
APPRECIATE THE TREE MORTALITY
TASK FORCE STRUCTURE AND THAT IT
PROVIDES FOR COMMUNICATION. AND
THE OPPORTUNITY FOR FOLKS TO
COME TOGETHER.
OBVIOUSLY IT'S BASED ON THE
INSTANT INCIDENT COMMAND
STRUCTURE THE SAME STRUCTURE WE
USE FOR ANY WILDLAND INCIDENT
CAN BE USED ANYWHERE NAY EXPANDS
AND CONTRACTS WITH THE
COMPLEXITY OF THAT INCIDENT.
.
WE WANTED TO CREATE A NEUTRAL
ENVIRONMENT THAT WE COULD COME
TOGETHER WEEK EVERYBODY HAD THE
OPPORTUNITY TO BE HEARD.
OBVIOUSLY A VERY COMPLEX TO.
SOMETIMES CAN BE A LITTLE BIT
STRESSED.
TOPIC BUT WE WANTED TO GIVE
EVERYONE THE OPPORTUNITY TO BE
HEARD AND COME TOGETHER SO VERY
QUICKLY WHAT WE DID IS ORGANIZED
A WORKSHOP TO WHERE WE BROUGHT
ALL OF THE. REPRESENTATIVES FROM
INSURANCE INDUSTRIES.
DEPARTMENT OF INSURANCE WAS A
GREAT SUPPORT WITHOUT BOND OTHER
ENTITIES THAT WERE INTERESTED IN
COMING TO THE TABLE AND REALLY
EDUCATING OURSELVES ON WHAT SOME
OF THE INSURANCE ISSUES WERE.
FROM THAT WE WE REALIZE THAT
THERE WAS A NEED TO FOCUS MORE
DIRECTLY ON INSURANCEAND SO.
WE CREATED AN INSURANCE SUB
GROUP AND I SHOULD SAY THAT
UNDER THE TREE MORTALITY THE
REGULATIONS WORKING GROUP WHICH
I AM THE CO CHAIR. ESTABLISH TO
THE THE SUBGROUP OR THE
INSURANCE GROUP UNDERNEATH.
.
YOU KNOW LARGELY WE WANTED
EDUCATE OURSELVES WE WANTED TO
TRY TO FRAME UP.
OF WHAT THE PROBLEM WITH THE
CONCERNS REALLY WERE AND THEN WE
WANTED TO MOVE FORWARD WITH WHAT
WE WERE REFERRING TO WAS A NON
REGULATORY SOLUTION.
THIS WAS LARGELY BECAUSE WE FELT
THAT WHEN YOU WHEN YOU START
TALKING ABOUT CHANGING STATUTE
OR LAW CHANGES THE DYNAMIC OF
THE COMMUNICATION WE WANTED TO
REALLY EDUCATE OURSELVES ON WHAT
THE ISSUES WERE.
I THINK WE'RE VERY EFFECTIVE AT
THAT.
I THINK IT'S BEEN A GREAT
OPPORTUNITY WE QUICKLY SIDE
DISCONNECT BETWEEN. ON THE
VEGETATION MANAGEMENT PRACTICES
OR THE FIRE PREVENTION PRACTICES
A DEFENSIBLE SPACE THAT WE WOULD
CREATE AROUND HOMES AND HOW THE
* DOES THAT RISK MODELS WERE
USING THAT INFORMATION.
ESSENTIALLY THE RISK MODELS
RELYING ON VEGETATION SLOW OPEN
ACCESS
THAT VEGETATION COMPONENT
DOESN'T ALLOW OR DOESN'T TAKE
INTO CONSIDERATION THE SURFACE
IN LATTER FUEL REDUCTION THAT WE
COMMONLY REQUIRE UNDER
DEFENSIBLE SPACE CLEARING.
DOESN'T TAKE INTO CONSIDERATION
AS AS TO MISTER JONES INDICATED
THE FUEL BREAKS AROUND
COMMUNITIES.
SO WE WE SAW THERE BOTH A
DISCONNECT IN AN OPPORTUNITY AN
OPPORTUNITY SO THAT IF WE COULD
CREATE AN INCENTIVE FOR
LANDOWNERS HOMEOWNERS TO CREATE
THIS DEFENSIBLE SPACE AND IT
MIGHT BE TAKEN INTO
CONSIDERATION IN THE FIRE RISK
THAT'S AN HAD DEVELOPED FOR
THEIR PROPERTY.
THAT MIGHT BE A WIN WIN FOR
EVERYBODY AND SO THAT'S THE ROAD
WE STARTED GOING DOWN. OUT WE
DEVELOPED A TIERED RISK MODEL
WHICH IS A.
.
A WILDFIRE.
INSURANCE MODEL AGAIN IN
COOPERATION WITH THE INSURANCE
SUB GROUP THAT INVOLVED ALL OF
THESE DIFFERENT ENTITIES.
AND ULTIMATELY.
WHAT WE CAME UP WITH WAS A THREE
TIERED APPROACH?
THREE DIFFERENT LEVELS OF
COMPLIANCE AND AND RISK
AFFILIATED WITH STRUCTURES THE
FIRST BEING MORE SPECIFIC TO
DEFENSIBLE SPACE THE NEXT THE
NEXT LAYER THE NEXT.
LEVEL BEING DEFENSIBLE SPACE
PLUS ADDITIONAL WHAT WE CALL
STRUCTURE HARDENING.
THESE ARE BUILDING CODES.
THESE ARE BUILDING MATERIALS
SUCH AS A DECK MATERIAL CITING
THAT ARE LESS COMBUSTIBLE AND
THEN THE THIRD BEING. ALL THREE
OF THOSE COMBINED INTO ONE.
INCLUDING ADDITIONAL STRUCTURE
HARDENING.
MEDICATIONS AND SO THIS WAS.
THAT CONCEPT IN A MODEL THAT WE
PUT TOGETHER A WE WE'VE
DEVELOPED IT INTO A RIGHT A
WHITE PAPER IT'S CURRENTLY IN
DRAFT FORM. AND.
THE HOPE IS THAT WE.
FINALIZE THAT DRAFT AND BRING
IT TO THE FULL TREE MORTALITY
TASK FORCE FROM THE RATE THEY
INSURANCE SUB GROUP HERE IN THE
NEXT FEW MONTHS.
AND SO.
I JUST WANNA.
AGAIN THANK ALL THE FOLKS THAT
WERE INVOLVED WITH THE INSURANCE
SUB GROUP AND THE TREE MORTALITY
TASK FORCE IT'S BEEN A HUGE
LEARNING EXPERIENCE SAYS MOST OF
US ARE NOT INSURANCE EXPERTS
AND.
AGAIN I WANT TO TAKE DEPARTMENT
OF INSURANCE FOR THEIR EFFORTS
BECAUSE THEY ARE THE EXPERTS IN
AND HAVE BEEN A GREAT SUPPORT IN
THAT EFFORT SO THANK YOU.
VERY MUCH AND.
.
AND NOW IT'S TIME TO OPEN IT UP
FOR QUESTIONS.
.
I'VE I'VE GOT A COUPLE IN IF A
CENTER MORE LOCKER.
SENATOR RURAL THANK YOU FOR
JOINING US.
ANYONE HAS ANY.
.
FIRST I WANT TO THANK YOU
BECAUSE I KNOW DURING THE FOUGHT
DURING THE THOMAS FAR BOTH IN
VENTURA AND THEN WHEN IT MOVED
TO ONE SETO INCENTIVE I RECOUNT
ISSUE AND YOUR STAFF HAVE BEEN.
EXTRAORDINARILY HELPFUL AND
THERE'S NO DOUBT THAT A GREAT
DEAL OF OUR ABILITY TO WORK
THROUGH THIS.
AS A COMMUNITY HAS BEEN IS RUDE
ASSAULT OF YOUR EFFORTS SO I WON
A PERSONALLY THANK YOU FOR THAT.
.
I'M I'M CURIOUS WHAT KIND OF
COMPLAINTS SUPPORT THEMES ARE
YOU HEARING FROM A. RESIDENTS
ARE CONSUMERS FROM THE VARIOUS
FIRE DISASTER AREAS.
SO WE HAVE.
.
AS OF.
.
THE PRIVATELY THIS DAY. RECEIVED
RETURN SEVENTY FIVE MORE FORMAL
COMPLAINTS.
ARE RELATING TO THE OCTOBER
TWENTY SEVENTEEN.
NORTHERN CALIFORNIA FIRES HAS
BEEN ABOUT.
.
ANOTHER HUNDRED OR SO ASSOCIATE
WITH THE SOUTHERN CALIFORNIA
FIRES.
.
THE LION SHARE OF THOSE
COMPLAINTS OR CLAIMS RELATED.
THEY ARE.
COMPLAINTS ABOUT THE CLAIMS
PROCESS FOR EXAMPLE I'M VERY
EARLY ON.
WE STARTED RECEIVING COMPLAINTS
FROM CONSUMERS ABOUT HAVING TO
FILL OUT. A VERY DETAILED
PERSONAL PROPERTY INVENTORIES IN
ORDER TO OBTAIN A ALL OF ONE'S
PERSONAL CONTENTS COVERAGE.
AND THE COMPLAINT WAS THAT I
LOST EVERYTHING. I KNOW I HAD
MORE STUFF THAN WHAT THE
COVERAGE LIMIT IS.
IT'S ALREADY PAINFUL ENOUGH FOR
ME TO HAVE GONE THROUGH THIS
EXPERIENCE NOT GOT A DOCUMENT
EVERYTHING I OWNED IN LOSS IS
JUST TOO MUCH.
AND WE WERE VERY SYMPATHETIC TO
THAT OF COURSE I DON'T. HAVE THE
AUTHORITY THE LEGISLATION I CAN
MEET AUTHORITY DECORATIVE WAIVE
THAT REQUIREMENT IN THE
INSURANCE CONTRACT BUT I DID.
ISSUE A FORMAL REQUEST TO THE
INSURERS ASKING THAT THEY OF.
PROVIDE UP TO HUNDRED PERCENT TO
PERSONAL CONTENTS COVERAGE
WITHOUT IN INVENTORY.
MOST OF THE INSURERS AGREED TO
GO TO LEASE FIFTY PERCENT QUITE
A FEW OF GOING TO SEVENTY FIVE
PERCENT SOME OF THE ONE HUNDRED
PERCENT.
SO. THAT'S AN EXAMPLE OF THE
CLAIMS HANDLING COMPLAINTS.
BOB THERE ARE SOMEA RATING AND
UNDERWRITING ISSUES THAT WE'RE
HEARING AS WELL.
CONCERNS ABOUT RATES THAT THEY
WERE PAID ON THE UNDERWRITING
SIDE CONCERNS ABOUT UNDER
INSURANCE.
AND HERE OF COURSE YOU'RE A VERY
FAMILIAR BECAUSE WE'VE TALKED IN
THIS.
COMMITTEE BEFORE ABOUT AT SOME
LENGTH.
I DON'T HAVE THE AUTHORITY TO
REQUIRE INSURERS TO ENSURE
PEOPLE TO THE REPLACEMENT COST.
OTHERS NO STATUTE THAT REQUIRES
INSURERS TO.
ANNUALLY PROVIDE A POLICY
HOLDERS WITH THE REPLACEMENT
COST ESTIMATE.
THE BEST I WAS ABLE TO DO IN
TWENTY ELEVEN WEST ISSUE A
REGULATION.
THAT PROVIDED THAT WHEN
REPLACEMENT COST ESTIMATE IS
PROVIDED TO A POLICY HOLDER THAT
IS OF PARTICULAR COMPREHENSIVE
METHODOLOGY USED AS WHAT THE
DEPARTMENT FOUND IN THE WAKE OF
THE OAKLAND HILLS OF SAN DIEGO
FIRES. WITH THAT MANY PEOPLE ARE
UNDER INSURED BECAUSE ENSURE HAD
LEFT OUT IN THE REPLACEMENT COST
CALCULATION AN IMPORTANT AGREED
IT. THAT MAYBE THEY'D USE LABOR
COSTS FROM A DIFFERENT MARKET
ARE LEFT OUT PERMITTING FEES OR
ZONING UPGRADES OR EVEN MATERIAL
COSTS.
SO TWENTY ELEVEN BY PROMULGATED
REGULATION THE SAID IF YOU
PROVIDE A REPLACEMENT COST
ESTIMATE. THAT TO A POLICY
HOLDER HERE'S THE. COMPREHENSIVE
CONSISTENT METHODOLOGY AFTER
YEARS OF FOR MY GOOD EFFORTS I
WAS SUED BY THE ENTIRE INSURANCE
INDUSTRY.
THE PERSONAL INSURANCE
FEDERATION A SEE I SEE
INDIVIDUAL COMPANIES SEVEN YEAR
LEGAL BATTLE WE PREVAILED IN THE
CALIFORNIA SUPREME COURT.
THE REGULATION WAS UPHELD NINE
RESOUNDINGLY SO AND A SEVEN NO
DECISION BY A JUDGE JUSTICE
APPOINTED BY BOTH REPUBLICAN AND
DEMOCRATIC GOVERNORS.
HOWEVER.
THAT REGULATION WAS IN PLACE
DURING THE ENTIRETY THAT PERIOD
OF TIME WE WERE SUCCESSFUL
BEATING BACK AN INJUNCTIVE
ORDER.
OF BLOCKING THE REGULATION SO
ONE OF THE INQUIRIES THAT WE'RE
UNDERTAKING THAT BASED ON
COMPLAINTS IS. YOU KNOW DID THE
INSURER FOLLOW THE REPLACEMENT
COST REGULATION A WHEN THEY GAVE
ME THE REPLACEMENTCOST US BUT
NOW NOT EVERYBODY ASKS FOR
REPLACEMENT COST ESTIMATE. OF
MANY PEOPLE DIDN'T A SOME PEOPLE
BOUGHT THEIR INSURANCE MANY
YEARS AGO BEFORE THE REGULATION
WAS IN PLACE AND JUST DID AN
ANNUAL UPDATE GOT A MODEST
INCREASE FROM YEAR TO YEAR
WITHOUT REALLY SITTING DOWN AND
LOOKING AT THE REPLACEMENT COST
OF THEIR HOME. SO THERE ARE A
LOT OF VARIABLES.
BUT I ANTICIPATE AS THE CLAIMS
PROCESS WINDS ON UNDER INSURANCE
WILL CONTINUE TO BE A GROWING
ISSUE. AND SO.
WE HAVE.
RECOMMENDATIONS I IN A SEPARATE
BILL PACKAGE THAT'S MOVING
CALLED THE WILD FIRE SURVIVORS
BLUEPRINT BILL PACKAGE THAT
MEMBERS.
IN THE AREAS AFFECTED BY THE
FIRES OF INTRODUCED AND OUT
SEVERAL OF THOSE BILLS INCLUDING
ONE CARRIED BY SENATOR BILL DIED
GO TO THE QUESTION OF. A
REPLACEMENT COST REQUIRING AN
ANNUAL REPLACEMENT COST ESTIMATE
TO GET BE GIVEN.
REQUIRING AN UPDATE THE AND IN
SOME CASES REQUIRING ADDITIONAL
COVERAGE SHOULD BE PROVIDED IN
THE CASE OF A NATURAL DISASTER
CRITICS OF ITS CLAIMS COURT
CLAIMS ISSUES IN UNDERWRITING
ISSUES ARE. ARE GENERALLY THAT
MEANS OF QUESTIONS WERE GETTING.
THANK YOU VERY MUCH OTHER
QUESTIONS SO THE SENATOR GLAZER
IN AND A CENTER MONNING.
EXCUSE ME SOME SENATOR MORE LOCK
BEGAN WITH THE NAM ON COME
CLOSE.
GO AHEAD SENATOR MOORE LA.
CHAIR AS COMMISSIONER JONES.
I WE WERE GIVEN A MUCH MATERIAL
AND ON PAGE.
FOR THE FIRST PARAGRAPH STARTS
OFF WITH THE SENTENCE.
INSURERS COMPLAINED THEY HAVE TO
FILE RATE PLANS BASED ON. PAST
LOS EXPERIENCE.
DOES THAT MEAN THAT YOU.
HAVE TO REVIEW WITH INSURANCE
COMPANIES WHAT.
RATES THEY CAN CHARGE.
I HAVE AN ANSWER FOR YOU BUT
I'M NOT SURE WHAT YOU'RE
REFERRING TO ARE YOU LOOKING AT
THE COMMITTEE ANALYSIS PERCHANCE
GOT. THIS THIS.
HANDOUT THAT WAS PROVIDED TO
AROUND HANDOUT THAT WAS
COMMITTEE ANALYSIS YEAH. PAGE
FOUR OF THE COMMITTEE ANALYSIS.
BROWN'S SORRY CENTER FIRST FULL
PARAGRAPH UP BY YOUR LEFT THUMB
IT. INSURERS COMPLAIN YEAH SO.
THIS WAS PREPARED BY THE
COMMITTEE.
IT'S A VERY.
.
THOROUGH AND DETAILED ANALYSIS.
IT IS THE CASE.
THAT THE THE VOTERS ENACTED
PROP ONE OF THREE IN THE STATE
OF CALIFORNIA. A WHICH PROVIDES
THAT INSURERS HAVE TO JUSTIFY
THEIR RATES.
IF THEIR PROPERTY CASUALTY
INSURANCE.
IN THE WAY THEY DO THAT IS BY
SUBMITTING THEIR RATES TO THE
DEPARTMENT. THEY SUBMIT THEIR
EXPERIENCE IN LOS
DATA THAT THEY SUBMIT THEIR
ADMINISTRATIVE COSTS.
THEY IDENTIFY.
SOME AMOUNT OF.
RETURN THAT THEY'RE GOING TO
MAKE.
THEN WE APPLY VERY DETAILED
REGULATORY ONLY BASED.
RAINN FACTORS IN DEVELOPMENT
STANDARDS DETERMINE WHAT WHAT
THE RATE SHOULD BE.
INCREASINGLY INSURERS ARE USING
A FORWARD LOOKING PREDICTIVE
MODELS I MENTION THESE WILD
FIRE.
I RISK MODELS THEY'RE BEING USED
BOTH FOR UNDERWRITING AND
RATING.
AND I ANTICIPATE THAT HIM OF
RAPE FILINGS WE'RE GOING TO SEE.
ADDITIONAL REQUESTS FOR
INCREASES BASED ON THAT THESE
MOST RECENT LOSSES BY AS WELL
AS.
INDICATIONS OF WHAT THESE
MODELS ARE PREDICTING GOING FOR.
I THANK YOU FOR REMINDING ME OF
PROP ONE OF THREE.
WHAT YEAR WAS THAT OPPOSE
NINETEEN EIGHTY EIGHT THEN?
I'M REMINDED BY MY CHIEF DEPUTY
MISTER LAU SURE WHO I WAS REMISS
IN NOT INTRODUCING EARLIER.
THAT.
THE RATE DEVELOPMENT FACTORS
ALSO INCLUDE WHAT'S CALLED A
THAT CATASTROPHE LOADER
CATASTROPHE FACTOR AND WHAT THAT
IS IS THAT'S WHERE THE INSURERS
CAN PUT.
IN INCREMENTS OF RATE THAT THEY
BELIEVE IS NECESSARY TO DEAL
WITH CATASTROPHES LIKE THE ONE
THAT HAS OCCURRED HERE AND SO
THERE IS A A COMPONENT OF RATE
DEVELOPMENT. AT THAT A
CONTEMPLATES.
RATING BASED ON CATASTROPHIC
EVENTS LIKE THE ONE THAT
OCCURRED HERE.
DO YOU ALSO REVIEW THEIR INCOME
STATEMENTS HUMAN OR INCOME TAX
RETURNS AND THEIR BALANCE SHEETS
FINANCIAL AUDITED FINANCIAL
STATEMENTS TO. MAKE SURE THAT
THEY'RE NOT. CHARGING TOO MUCH
THEN IS AT PAR THE PROCESS WELL
WE WE.
WE LOOK AT THE RATES AT THE
FILE.
WE LOOK AT OTHER A FINANCIAL
INFORMATION.
BUT WE ALSO HAVE RESPONSIBILITY
FOR MAKING SURE THAT THE
COMPANIES ARE ADEQUATELY
RESERVING TO PAY FUTURE CLAIMS.
AND SO WE DO A LOOK AT THEIR
FINANCIAL STATEMENTS.
IN PARTICULAR BY THE AMOUNT OF
RESERVES AND WE LOOK AT THEIR
RESERVES HAS MATCHED AGAINST
THEIR LIABILITIES TO MAKE SURE
THAT IN THE EVENT OF A
CATASTROPHIC EVENT LIKE THIS
ONE.
THEY ARE SUFFICIENTLY RESERVE TO
BE ABLE TO PAY CLAIMS AND I WILL
TELL YOU THAT YOU KNOW THIS IS
A.
AN ENORMOUS AND DEVASTATING.
SERIES OF OF OF THE
CATASTROPHES TWELVE OVER TWELVE
BILLION DOLLARS IN TOTAL LOSSES
ACCOUNTING.
.
THAT OBVIOUSLY FALLS ON DEFERRED
INSURERS IN DIFFERENT WAYS GIVEN
THEIR DEGREE OF EXPOSURE SOME
INSURERS ARE HAVING MORE OF THAT
LOST SOME LAST.
BUT WE ARE.
FAIRLY CONFIDENT THAT BASED ON
OUR WORK.
MAKING SURE THAT COMPANIES ARE
ADEQUATELY RESERVED THAT THEY'LL
BE ABLE TO PAY THOSE CLAIMS.
THAT THEY HAVE SUFFICIENT
RESERVES TO PAY THE CLAIMS.
WE WERE GIVING UP YET SHEET THAT
SHOWS THAT FROM NINETY ONE TO
TWENTY SIXTEEN.
THE NUMBER OF INSURANCE
COMPANIES HAS GONE FROM A
HUNDRED AND NINETY ONE DOWN TO
HUNDRED AND SEVEN.
AND SO I'M WONDERING WHAT PROP
ONE A THREE BE PART OF THE
PROVINCES THAT PASSED IN EIGHTY
EIGHT. IT RECEIVED FORTY FOUR
PERCENT OF THE INSURERS JUST
LEAVE THE STATE.
OR WAS IT MERGERS OR WAS IT
ACTUAL BANKRUPTCIES WELL I I
I'VE I I'M NOT FAMILIAR WITH
THAT PARTICULAR PIECE OF PAPER
IN HIS SOURCE BUT. THERE. IT'S
YOURS
YEAH.
IT'S MINE.
GREAT.
WELL THAT'S GONNA BE HARD FOR ME
TO DISAVOW IT ISN'T IT.
YEAH. I GUESS I AM FAMILIAR WITH
IT.
BUT WHAT WHAT HAS OCCURRED OVER
THAT PERIOD OF TIME ARE.
SERIES OF CONSOLIDATIONS IN
MERGERS OF COMPANIES.
AND SO I THINK THAT THAT'S A
PROBABLY THE MOST SIGNIFICANT
FACTOR EXPLAINING THAT THAT
NUMBER.
I WILL SAY THOUGH THAT WE
CONTINUE TO HAVE COMPETITION IN
THE MARKET AS I MENTIONED A
MOMENT AGO.
WE WERE SUCCESSFUL UNDER MY
COMMISSIONER SHIPPAN AS GETTING
ALL STATE TO RETURN BACK TO THE
MARKET AFTER HE'D PULLED OUT
ABOUT TEN OR FIFTEEN YEARS AGO
THAT WAS A BIG. THAT WAS A BIG
PLUS BUT THERE HAS BEEN
SIGNIFICANT CONSOLIDATION WITHIN
THE INSURANCE INDUSTRY
GENERALLY.
I'M A FAIR PLAN. IT THAT'S AN
INSURANCE COMPANY ITSELF RIGHT
WOULD DO WE HAVE A SEPARATE
DEPARTMENT FOR THAT NOW DO WE.
DO THE.
THE BALANCE SHEET INCOME
STATEMENT HOW DO WE MAKE SURE WE
HAVE ENOUGH RESERVES.
SO.
MORE PRECISELY IN A IN I DIDN'T
SAY THIS IN MY REMARKS BECAUSE A
READING OF TIME A. THE FAIR PLAY
AND THE FAIR PLAN. THE FAIR PLAN
NOW IS ACTUALLY INNOCENT USUALLY
TO TAKE CARE DINNER WILL
STICKERS FOR AYE AYE FOR DINNER.
I WAS TRYING TO BE MINDFUL BUT
THE BUT THE FAIR FLED.
THE FAIR PLAN IS ACTUALLY.
IN ASSOCIATION AND ALL OF THE
WRITERS OF PROPERTY INSURANCE
PARTICIPATE IN IT.
HITS
STATUTORILY.
CREATED A IT IS REGULATED BY
THE DEPARTMENT OF INSURANCE THAT
WE PERFORM THE SAME.
RATE REGULATORY AND FINANCIAL
SOLVENCY REVIEW FOR IT AS WE
PERFORM FOR.
THE REST OF THE ADMITTED THAT
COMMERCIAL MARKET. LIKE A JPA.
I YEAH I GUESS I MEAN I THINK
IT'S IT I I GUESS TOO I WOULD
THINK OF IT IS A.
CONSORTIUM OF ALL OF THE
PRIVATE A CONCERT YOU COOPER
CONSORTIUM OF ALL THE PRIVATE
CARRIERS STATEMENT TO IT RIGHT
YES ABSOLUTELY IT AS A SEPARATE
LEGAL EXISTENCE ABSOLUTELY NO I
GET THAT.
I'M YOU CAN GET IT FROM THE FAIR
PLAN.
OKAY SO THERE'S THAT YOU HAVE A
WEB PAGE THAT HAS FAIR PLAN
THERE THERE IS AN ENTITY CALLED
THE FAIR PLAN THEY HAVE AWAY
PAGE THEY HAVE A DIRECTOR SHE'S
A VERY NICE LADY SHE'S TESTIFIED
BEFORE THIS COMMITTEE THE PAST.
THE AND AND THEY HAVE THEIR OWN
STAFF IN THEIR OWN LEGAL
EXISTENCE AND YOU CAN CERTAINLY
GET OUT IF IT IS UNDER RESERVE
TO WHO BANKS SET UP.
WELL I IF THEY WERE UNDER
RESERVE WHICH WE DON'T BELIEVE
THEY ARE THEN WE WOULD SAY T
THEM YOU'VE GOT TO RAISE YOUR
RATES TO. GATHER MORE RATE TO
MAKE SURE YOU HAVE SUFFICIENT
RESERVES.
IF IF IN EXTREMISTS.
THEY FIND THEMSELVES IN A
POSITION WHERE THEY'RE
COLLECTING INSUFFICIENT RATE IN
ORDER TO COVER LOSSES THAN THEY
CAN TIE OF THE MEMBERS OF THE.
OF THE CONSORTIUM.
BUT WE HAVE NO INDICATION
CURRENTLY THAT THEY'RE UNDER
RESERVED.
THANK YOU OUR A WILL QUIT WERE.
NOW BEEN WELL OVER AN HOUR AND I
BELIEVE THAT SHOULD THE CHAIR.
QUESTION.
ALL ONE QUESTION IF YOU WOULD
THEN WE CAN MOVE ON.
IT RELATES THE SAME DOCUMENT ON
PAGE FOUR.
I'LL JUST MAKE ONE QUESTION BUT
IT IF YOU LOOK AT THE MIDDLE OF
THE SECOND FULL PARAGRAPH
INSURERS HAVE ACCESS TO BRUSH
MAPPING PROGRAMS.
BRIMMING WITH DATA FROM THE
CALIFORNIA DEPARTMENT OF
FORESTRY AND FIRE PROTECTION CAL
FIRE. U. S. FOR SERVICE AND THE
NATIONAL OCEANIC AND ATMOSPHERIC
ADMINISTRATION.
BUT CAL FIRE SPIN EIGHT YEARS
BEHIND IN DOING BUYER MAPS IN.
THE CAT CAME UP AS A RESULT OF
THE FIRES A NAP IN CINEMA EVEN
IN THE WALL STREET JOURNAL
THERE'S AND WHERE THE FIRE MAPS.
SOME WONDER WHAT'S THE
INTEGRATION BETWEEN INDUSTRY AND
YOU. IS INDUSTRY PRACTICE OF
EXPERTS GAP SHOWS THAT. THE
INDUSTRY'S BUILDING SOME
INCREDIBLE MAPS AND I'M JUST
WONDERING.
WHERE'S THE COOPERATION WORKERS.
SOME KIND OF COLLABORATION. OF
BECAUSE I I'VE I'VE GOT A OF
WILDFIRES OWN IN MY DISTRICT IN
ITS RATED LOW AND I LOST FOUR
HUNDRED AND FIFTY HOMES THERE.
IN NINETEEN NINETY THREE SO I
WANT TO KNOW WHAT'S GOING ON.
IN THAT ON IT AND THAT'S THE ALL
OVER ALL THE COUNTRIES IN
QUESTION WITH MAYBE SOME FOLLOW
UPS BUT THAT'S I SUSPECTED TO
HAVE A QUICK RESPONSE THINK THE
QUESTION IS THAT THE THERE'S TO
THE SUGGESTION THAT THE CAL
FIRES ABOUT EIGHT YEARS BEHIND
IN TERMS OF DRAWING ITS. MAPS
WE'RE DOING ITS.
IT'S WORKED PRETTY OF A RESPONSE
TO ME I APPRECIATE THE QUESTION
I YOU KNOW I THINK IT DEPENDS ON
WHAT MAPS THEY'RE REFERRING TO
HEAR I'M A LITTLE UNCLEAR ON
THAT.
IF WE'RE TALKING FIRE HAZARD
SEVERITY ZONE MAPS.
WE'RE TALKING BRUSH MAPS YOU
KNOW I'M I'M A LITTLE UNCLEAR ON
WHAT WHAT MAPS THEY'RE REFERRING
TO.
.
WE YOU KNOW WE RECOGNIZE THERE'S
THERE'S A NEED TO UPDATE OUR
MAPS AND AND WE'RE WORKING TO.
YOU KNOW CONTINUALLY WORKING TO
MAKE THOSE UPDATES DEPENDS ON
WHAT THEY'RE TALKING ABOUT
THOUGH THAT IS FAR AS THE MAPSCO
THAT I'M I'M TALKING THE CONTEXT
OF FIRE HAZARD SEVERITY ZONES.
WE RECENTLY.
WERE WORKING WITH CPUC ON SOME
OTHER MAPS AT THE CPC IS
ACTUALLY ADOPTED AT THIS POINT
AND THOSE ARE COMPLETE SO. I
GUESS I WOULD NEED A LITTLE MORE
INFORMATION AND WOULD BE HAPPY
TO WORK WITH WITH.
THE COMMITTEE AND AS WELL AS
DEPARTMENT OF INSURANCE IN IN IN
HELPING TO A GETS MORE CLARITY
SO WHAT WE'LL DO IS WE'LL MAKE
SURE THAT WE GET YOU THAT
INFORMATION IF YOU HAVE ANY
FURTHER QUESTIONS I'M SURE
CENTER MORE LOCK WOULD BE HAPPY
TO FOLLOW UP WITH YOU. ON THAT
PARTICULAR ISSUE SO WE WERE ON
THE SAME PAGE TALK ABOUT THE
SAME MAPS.
THAT SENATOR GLAZER HAD A
QUESTION.
YEAH.
COULD ASSURE THANK YOU FOR YOUR
TESTIMONY AND ALSO THANK YOU FOR
BEING OUT AND ABOUT AND ENGAGE
IN THESE COMMUNITIES WHERE THESE
DISASTERS OF STRUCK I KNOW IT'S
A. IT'S A TRAUMATIC TIME FOR
EVERYONE INVOLVED AND I THINK
YOU BEING THERE AND CONNECTING
WITH THEM IS VERY MEANINGFUL I
APPRECIATE THE EXTRA EFFORT THAT
YOU AND YOUR DEPARTMENT HAVE
ENGAGED IN TO.
TO TRY TO BRING COMFORTED AND
VERY UNCOMFORTABLE SITUATION.
AND YOU MENTIONED IN YOUR
TESTIMONY THAT YOU WERE LOOKING
FOR SOME MORE DATA ON LOSSES.
AND I WAS A LITTLE CONFUSED BY
THAT IN TERMS OF.
WHEREBY YOU HAVE AVAILABLE NOW
AND WHAT WHAT MORE YOU WOULD BE
SEEKING.
SO I THINK WHAT WERE WHAT WERE
INTERESTED IN.
IN OUR OUR PROPOSAL. IS.
.
THAT I'D COLLECTING MORE MORE
DETAILED INFORMATION WITH REGARD
TO LOS EXPERIENCE.
AND THEN BEING ABLE TO USE THAT.
IN A MORE SPECIFIC WAY FOR
PURPOSES OF RATING.
SO WHAT WOULD OCCURS THE IN SOME
CASES WITH SOME. CARRIERS RATE
DEVELOPMENT IS THEY MAY NOT HAVE
ENOUGH EXPERIENCE.
AN OF CREDIBLE EXPERIENCE THAT I
TO USE AN ACTUARIAL TERM.
IN THEIR OWN.
RATINGS OF INSURANCE
TO BE ABLE TO.
PREDICT AS WELL AS THEY MIGHT
WHAT THE FUTURE LOSSES MIGHT BE
ASSOCIATED WITH THE WRITING IN
HIGH RISK FIRE AREAS SO THEY
THEN USE OTHER SOURCES OF
INFORMATION THAT MIGHT BE PUT
TOGETHER BY THIRD PARTIES THAT
COLLECT THIS DATA.
AND YOU KNOW BY AND LARGE AS
LONG AS IT'S A CREDIBLE WILL
ALLOW THAT BUT WE THINK. THAT BE
SOME REAL BENEFIT IN ARE
COLLECTING MORE DETAILED A LOS
EXPERIENCE DATA ACROSS THE
ENTIRE CALIFORNIA MARKET IS SO
SHE WOULD WILD FIRES. SO THAT.
WE WOULD THEN HAVE THAT
AVAILABLE AND COULD MAKE IT
AVAILABLE TO CARRIERS TO DO A
MORE REFINED. A JOBLESS RATE
DEVELOPMENT THAT SPECIFIC TO
CALIFORNIA IF THEY DON'T HAVE
ENOUGH OF THEIR OWN EXPERIENCE
TO BE ABLE TO RATES OF THEY'RE
STILL THEY'RE STILL WRITING IN
HIGH RISK FIRE IS MAYBE NOT A
WHOLE LOT THEY HAVEN'T HAD A LOT
OF LOSSES. SO WHEN THEY DEVELOP
THEIR RATES THEY DON'T HAVE
ENOUGH A DATA POINTS TO HAVE
CREDIBLE EXPERIENCE SO THEN
THEY.
USE EXPERIENCE FROM THESE OTHER
SOURCES AND SOME OF THESE OTHER
SOURCES.
MAY NOT BE CALIFORNIA'S
SPECIFIC.
AND MAY NOT BE AS.
ROBUST TO REFINE THE DATA SAID
AS WE THINK WE MIGHT BE ABLE TO
ATTACK OBTAINED BY ACTUALLY
EXPERIENCE DATA. IF I IF I SAID
ANYTHING WRONG YOU CAN CORRECT
ME BUT. I THINK THAT'S THE GIST
OF IT THE AND THAT IS NOT
SOMETHING THAT'S TYPICALLY DONE
IN THE NORMAL COURSE OF
ASSESSING THEIR. THEIR RATES THE
RATES THEY'RE PROPOSING WELL
AGAIN WHAT'S DIFFERENT WHAT'S
DIFFERENT IS.
THERE ARE SOME NUMBER OF
CARRIERS WHO DON'T HAVE ENOUGH
EXPERIENCE AND ARE USING THIRD
PARTY DATA SETS TIGHTER AND YEAH
WHAT IS THAT THAT THAT COULD
HAPPEN LAST YEAR. AND THE YEAR
BEFORE IN OTHER WORDS IS NOT
SOMETHING THAT'S DONE IN THE
NORMAL COURSE OF YOUR A
REVIEWER.
WELL WHY IS THIS DIFFERENT THAN
WHAT'S DIFFERENT ABOUT IT IS
THAT WE BE COLLECTING AT ONE
TIME. CARRIES DON'T COME IN
EVERY YEAR THEY MAY COME IN YEAR
ONE
LINE AND THAT CAN THAT NOT
COMING FOR RATE FILING TO YEAR
FOUR. AND SO IT SORT OF ALL OVER
THE PLACE AND SO WE HAVE BITS OF
DATA FOR DIFFERENT PERIODS OF
TIME.
WE HAVE DATA THAT SPECIFIC TO
PARTICULAR CARRIERS BUT WE DON'T
WE HAVE A COLLECTED IN ONE PLACE
ALL THE DATA FOR A GIVEN YEAR.
THAT WOULD LET US HAVE A
COMPLETE PICTURE AND THAT WE
COULD THEN USE AND FRANKLY THE
CARRIERS COULD USE TO DO AND I
AND I SUSPECT I MEAN THE BENEFIT
OF THIS TO THE CARRIAGE FRANKLY
IS FOR THOSE CARRIERS THAT ARE A
LITTLE BIT NERVOUS ABOUT WRITING
MORE HIGH. RISK FIRES BECAUSE IN
A LOT EXPERIENCE THERE THIS DATA
SAID COULD PROVIDE MORE COMFORT
TO SOME OF THEM.
WERE LEASE FOR COMFORT WITH
REGARD TO WHAT THE APPROPRIATE
PRICING IS TO ENABLE THEM TO
WRITE IN THOSE AREAS.
THANK YOU THANK YOU VERY MUCH
THANK YOU THANK YOU VERY MUCH I
KNOW THERE'S PROBABLY A LOT
MORE.
WE WILL COVER SOME OF THE.
ISSUES THAT HAVE BEEN RAISED IN
SOME OF THE SUBSEQUENT.
CANDLES AND I JUST WANT TO AGAIN
THANK YOU COMMISSIONER AND STAFF
AND. LOW CAL FIRE.
.
WE REALLY ARE ASKING A LOT OF
FEW BUT THE PEOPLE CALIFORNIA
DESERVE
BECAUSE THEY DESERVE IT AND THE
ANSWERS AND AND IMPROVEMENTS
GOING FORWARD SO PRE SHAVE YOUR
TIME AND YOUR THINKING THAT HERE
LEADERSHIP THANK YOU THANKS A
LOT. THANK YOU.
NEXT WE'RE GOING TO BRING UP A
WHAT WE'RE CALLING VIEW FROM THE
FRONT LINES SOME OF THE LOCAL
COMMUNITIES TO TALK ABOUT THEIR
EXPERIENCE STACI HEATON. A RURAL
COUNTY REPRESENTATIVES OF
CALIFORNIA FEUD COME FORWARD
JEFF CARMEN.
FIRE CHIEF FOR CONTRA COSTA
COUNTY FIRE PROTECTION DISTRICT
AND DAN WAVED OF UNITED POLICY
HOLDERS IF YOU COULD.
COME FORWARD AND.
I AM ACTUALLY GOING TO TRY WITH
A STRAIGHT FACE TO ASK YOU TO
KEEP YOUR COMMENTS TO FIVE
MINUTES EACH.
LETS SEE WHAT WE CAN ACCOMPLISH
HERE A IN THAT. AMOUNT OF TIME
THEY WILL OPEN IT UP FOR SOME
QUESTIONS.
SHOULD WE START WITH THE STATE'S
HEATON.
AFTERNOON.
AFTERNOON AND THAT I WANT TO
THANK BOTH THE TEARS FOR THE
INVITATION TODAY APPRECIATE IT.
I AM STACEY HEATON WITH THE
MIAMI. I SHOULD BE ON A TRY TO
TALK A LITTLE LOUDER.
I AND STACEY HE IN WITH THE
RURAL COUNTY REPRESENTATIVES OF
CALIFORNIA RC RC WE REPRESENT
THIRTY FIVE RURAL COUNTIES
STATEWIDE.
WE ALSO REPRESENT EIGHT OF THE
TEN HIGH HAZARD COUNTIES FOR
TREEMORTALITY THERE ARE
INVOLVED IN THE TO MORTALITY
TASK FORCE.
WE'VE ALSO KIND OF ADOPTED KERN
AND FRESNO IN THE PROCESS EVEN
THOUGH THEY'RE NOT MEMBERS OF
HIS HERE SEE BECAUSE WE WORK SO
CLOSELY WITH THEM ON THE ATTY
MTF. AND I'M RCR SEES
REPRESENTATIVE ON THE TO
MORTALITY TASK FORCE AS WELL AS
ON THE FORCE CLIMATE ACTION
TEAMS SO. THAT WERE PRETTY
INVOLVED IN SOME OF THESE ISSUES
RC RC CONTAINS A LOT OF
CALIFORNIA'S FORESTED LANDS
INCLUDING MORE THAN SEVENTY
PERCENT OF. AT THE STATE'S
NATIONAL FOREST LANDS SO AS YOU
MIGHT GUESS WE'VE DEALT WITH A
LOT OF WILD FIRE ISSUES AND.
THE RECENT PAST.
NO THE RIM FIRE THE KING FIRE
THE VALLEY FIRE THE BUTTE FIRE I
COULD GO ON BUT YOU PROBABLY
WOULD PREFER THAT I NOT.
SO THESE TYPES OF ISSUES WITH
INSURANCE POLICIES CANCELLATIONS
ON RENEWALS ARE NOT EXACTLY NEW.
TO OUR.
MEMBERSHIP AND WE'VE BEEN
HEARING ABOUT THEM FOR YOU KNOW
THEN THE BETTER PART OF THIS
DECADE. BUT AS THE TRUE
MORTALITY EMERGENCY CAME AND GOT
MORE SERIOUS WE STARTED HEARING
ABOUT THE MORE FREQUENTLY.
ESPECIALLY DOWN IN THE CENTRAL
AND SOUTHERN SIERRA US AND SO.
IN THE TASK FORCE OF AFFORDED US
AS A MATTHEW REISMAN ALLUDED TO
A VERY GOOD OPPORTUNITY SERVE
DIG DOWN INTO THIS ISSUE.
NOW A COUPLE THINGS I WANTED TO
US FROM THE COUNTY PERSPECTIVES.
ARE TWO THINGS IN MIND BEING A
THE FIRST BEING THE WORD
AFFORDABILITY WHICH IS SOMETHING
THAT WE HAVEN'T TALKED ABOUT
YET.
IF YOU LOOK AT APPENDIX C..
FOR THE UC COMMISSIONER'S
REPORT WHICH WE VERY MUCH
APPRECIATE APPRECIATE THE
DEPARTMENT OF INSURANCE'S
INVOLVEMENT WITH THE COUNTIES ON
THE TASK FORCE.
YOU'LL SEE THAT BY ALL THE
COUNTIES THAT ARE LISTED IN THE
WITH DWELLINGS IN THE.
VERY HIGH. FIRE RISK ZONES ADD
THAT HAVE THIRTY THREE PERCENT
OF THEIR HOMES.
IN THOSE ZONES ARE MORE.
ARE ALL OUR SHARES THE MEMBER
COUNTIES. AND IF YOU LOOK AT
THOSE COUNTIES THERE ALSO ALL.
LARGELY LOW INCOME COMMUNITY
COUNTIES.
IF YOU GO BY THE DEFINITION
UNDER AB FIFTEEN FIFTY THOSE
COUNTIES HAVE VERY LARGE SWATHS
OF LOW INCOME COMMUNITIES
COUNTIES LIKE TRINITY AND LAKE
AND SIERRA AND. CAN YOU MONO AND
MARIPOSA.
AND SO WHEN YOU HAVE A HOMEOWNER
THAT'S BEING COUNSELOR NON
RENEWED AND THEY'RE GOING OUT
LOOKING FOR THEIR COVERAGE.
AND THEIR HAVING TO GO TO A
POLICY THAT IS UP TO TWICE AS
MUCH AS WHAT THEY'VE BEEN
PAYING.
.
IT'S COVERAGE.
BUT IS IT AFFORDABLE AND
SUSTAINABLE NO PROBABLY NOT.
AND SO IT'S ALSO NOT JUST AN
ISSUE OUT IN THE STICKS AS WE
MIGHT THINK ABOUT WHERE THE FIRE
RISK AREAS ARE. WE'VE BEEN
SEEING HOMEOWNERS IN PLACES LIKE
AUBURN WHERE THEY ARE WITHIN A
MILE OR TWO OF A FIRE STATION
ACROSS THE STREET FROM A FIRE
HYDRANT.
I GET CANCELED A NON RENEWED
BECAUSE THEY'RE IN HIGH FIRE
RISK AREA.
SO IT NEEDS ARE NOT THESE ARE
BECOMING MORE COMMON ITS NOT
UNIQUE TO THOSE FOLKS OUT IN THE
REMOTE AREAS. AND AS WE SEE THE
SORTS OF HIGH SEVERITY
CATASTROPHIC.
DAMAGING WILDFIRES EXPAND OUT
INTO AREAS SUCH AS SENATOR
JACKSON'S DISTRICT.
WE FEAR THE EXPANSION OF THE
CANCELLATIONS ARE NOT RENTALS.
AND SO WELL AFFORDABILITY IS A
GREAT CONCERN WE ALSO HAVE ONE
OTHER GREAT CONCERN AT THE
COUNTY LEVEL.
AND THAT BEING.
OR THE.
THAT CONCERN OF PEOPLE BEING
ABLE TO. HAVE THE VALUE OF THEIR
HOMES HOMES THAT CAN GET
INSURANCE COVERAGE BECOME A LOT
LESS VALUABLE.
AND AS OUR HOME VALUES DROPPED
IN OUR RURAL COUNTIES.
IT. TAKES DOWN OUR OUR TAXATION.
ABILITY AS WELL AND SO CAN WE
PROVIDE SERVICES AT A LEVEL THAT
OUR. CONSTITUENTS ARE USED TO IF
WE ARE FOR PROPERTY TAXES GO
DOWN.
THAT WE CAN COLLECT SO THAT IS A
GREAT CONCERN FOR OUR MEMBER
COUNTIES AS WELL I THINK SHOULD
BE FOR COUNTIES ALL OVER THE
STATE THAT ARE GOING TO BE. AT
DEALING WITH THIS PROBLEM SO.
WE ARE VERY SUPPORTIVE AND I I
DON'T HAVE TO TALK TO MUCH ABOUT
THE TIERED RISK
MODEL BECAUSE MATTHEW COVERED
MOST VETS SO. HE DID MY JOB FOR
ME BUT ARE COUNTIES WERE VERY
INVOLVED IN DEVELOPING NOT RISK
MODEL WITH A CALIFORNIA THROUGH
THAT PROCESS AND WITH THE
INSURANCE INDUSTRY WE. WE ALL
WORK TOGETHER AND HELD HANDS AND
AND WHERE DEVELOPING THAT DRAFT
WE'RE VERY SUPPORTIVE OF
DEVELOPING A TIERED RISK
MANAGEMENT MODEL FOR HOMEOWNERS.
THESE HOMEOWNERS THAT ARE BEING
CANCELED A NON RENEWED THEY'RE
NOT OUT THERE NOT DOING THEIR
DEFENSIBLE SPACE ARE NOT FIRE
HURTING THEIR HOMES SOME OF THEM
ARE WORKING VERY HARD TO MAKE
SURE THAT THEIR HOMES.
OUR FIRE HARDENED IN ARE
PROTECTED FROM WILDFIRE.
SO IF WE'D LOVE TO SEE A
TERRORIST MANAGEMENT SYSTEM PUT
IN PLACE FOR HOMEOWNERS TO GET
INSURANCE DISCOUNTS THAT WAY.
AND WE ARE ALSO VERY SUPPORTIVE
OF MANY OF THE INSURANCE
COMMISSIONER'S RECOMMENDATIONS
THAT HE LAID OUT IN DURING HIS
TESTIMONY. AND WE WOULD LOVE TO
CONTINUE BEING HELPFUL CONTINUE
TO WORK WITH BOTH OF THESE
COMMITTEES ON THIS AS WE GO
FORWARD AND THE INSURANCE
INDUSTRY AS WELL.
ARE COUNTIES WANT TO BE HELPFUL
WOULD LIKE TO SOLVE THIS PROBLEM
AND. CONTINUE WORKING TOGETHER.
THANK YOU VERY MUCH I'M SURE
WE'LL HAVE SOME QUESTIONS FOR
YOU OUT LET'S NOW GO TO A JEFF
CARMEN FIRE CHIEF OF CONTRA
COSTA COUNTY FIRE PROTECTION
DISTRICT GOOD AFTERNOON SIR.
GOOD AFTERNOON SENATORS. I THANK
YOU FOR HAVING ME HERE I'M I'M
HERE TODAY TO TALK A LITTLE BIT
ABOUT.
FROM OUR PERSPECTIVE THE LOCAL
FIRE GOVERNMENT'S PERSPECTIVE ON
HOW WE CAN REDUCE PROPERTY LOSS
AND AND AND ALSO LIFE LOST. IT
ONE THING WE'VE NOTICED OVER THE
LAST SEVERAL YEARS IS THE
FEROCITY OF THESE FIRES THAT
WE'RE EXPERIENCING A WHETHER YOU
THINK IT'S THE NEW NORMAL NOT.
WE CONTINUE TO USE A WORD YEAR
AFTER YEAR THAT LIKE
UNPRECEDENTED AND NEVER BEFORE
SEEN SPEEDS OF THESE FIRES. AND
AND AND.
WE BELIEVE IT IS THE NEW NORM
AND WE'VE COME TOGETHER AS LOCAL
FIRE AGENCIES.
LOCAL.
LABOR ASSOCIATIONS MANAGEMENT
ASSOCIATION'S LEADER CALIFORNIA
CITIES TO FORM A COALITION THIS
YEAR.
TO TALK ABOUT WHAT WE THINK WE
CAN DO TO REDUCE THAT PROPERTY
AND AND LIFE PLUS WHO OPERATING.
AGAINST ALL ODDS RIGHT NOW I
WILL SAY THAT MANY FIRE AGENCIES
HAVE NOT RECOVERED FROM THE
RECESSION.
MY MY ORGANIZATION CLOSE SEVEN
FIRE COMPANIES IN TWO THOUSAND
AND TWELVE AND WE'VE ONLY BEEN
ABLE TO OPEN FOR THOSE BACKUPS
OR OPERATING LIKE MOST AGENCIES
WITH FEWER RESOURCES. COME IN
ADDITION TO THAT WE'VE TALKED
ABOUT THE SPEED AT WHICH THESE
FIRES ARE GROWING SOMETIMES OVER
AN ACRE A SECOND.
WHICH IS JUST AGAIN
UNPRECEDENTED. WE ARE REQUESTING
AND NEEDING RESOURCES FASTER
THAN EVER.
AND WERE OPERATING UNDER A
MUTUAL AID SYSTEM THAT IS A
MODEL FOR MANY STATES AND
NATIONS BUT AS A MATTER FACT IS
SIXTY YEARS OLD. AND IT'S A
REACTIVE SYSTEM THAT SYSTEM WAS
DESIGNED TO GET US.
HELP FROM OTHER AGENCIES WITHIN
TWELVE TO TWENTY FOUR HOURS AND
IT WORKED WEL IN NINETEEN FIFTY
ONE WAS DEVELOPED.
TODAY.
IN THE NORTH BAY FIRES FOR
EXAMPLE THE INCIDENT COMMANDER'S
THAT ARRIVED TWENTY THIRTY FIFTY
STRIKE
TEAMS THEY NEEDED IMMEDIATELY.
AND AGENCIES LIKE MYSELF WHO HAD
RESOURCES AVAILABLE OPERATING
UNDER THE SIXTY YEAR OLD SYSTEM
IN AN ANTIQUATED RESOURCE
ORDERING MODEL.
WAITED SIX HOURS TO SEND THE
RESOURCES WE HAVE AVAILABLE TO
THE NORTH BAY FIRES ABSOLUTELY.
OF FOR ME UNACCEPTABLE SO IT IS
YOU KNOW WE WE HAVE FORMED A
COALITION.
STATEWIDE AND WE'D LIKE TO
CHANGE THAT SIX YEAR OLD SYSTEM
FROM A PROACTIVE MODEL TO A
REACTIVE MODEL ARE PREDICTIVE
SERVICES IN THE STATE ARE ARE
VERY SOPHISTICATED PHENOMENA WE
KNOW. FORTY EIGHT SEVENTY TWO
HOURS IN ADVANCE WHEN A CLIMATE
DRIVEN EVENT IS GOING TO A CURSE
SO EVERYTHING FROM FLOODING
RAINS MUD SLIDES. AND AND
CERTAINLY HOT DRY WINDS WE CALL
RED FLAG DAYS AND WE'RE HOPING
THAT THE GOVERNOR WILL WILL.
ALLOW US ADDITIONAL FUNDING TO
THE CALIFORNIA OFFICE OF
EMERGENCY SERVICES TO UPDATE OUR
SYSTEM TO WHERE WE CAN.
PRO ACTIVELY PRE POSITIONED
RESOURCES AND THE MOST
VULNERABLE AREAS WHEN THOSE
CLIMATE DRIVEN EVENTS OCCUR SO
INSTEAD OF OF MOBILIZING AND
PUTTING TOGETHER THOSE RESOURCES
AFTER IT'S DETERMINED THAT WE
NEED THAT HELP ON A FIRE. A WILL
PUT THOSE RESOURCES TOGETHER
WELL IN ADVANCE OF THE CLIMATE
DRIVEN EVENTS AND PLACE THOSE IN
THOSE VULNERABLE AREAS SO THAT
WHEN THE INCIDENT COMMANDER'S
NEED THE RESOURCES. THE ORDERS
ALREADY BEEN PROCESSED IN THOSE
RESOURCES CAN BE DISPATCHED
IMMEDIATELY WE THINK IT'S THAT
THE BIGGEST CHANGE IN THE MUTUAL
AID SYSTEM THAT WE'VE SEEN AND.
YEARS OR MORE WERE HOPEFUL THAT
BY DOING SO. THAT WILL REDUCE
THAT PROPERTY IN LIFE LOS.
TWO EXAMPLES OF THIS SYSTEM IN
THE NORTH BAY FIRES.
THE LOCAL AGENCIES DID NOT HAVE
THE FINANCIAL FINANCES TO BE
ABLE TO PROACTIVELY PRE
POSITIONED RESOURCES AND WE SAW
WHAT HAPPENED IN NOTES NORTH BAY
FIRES I MENTIONED EARLIER WHERE
WE WAITED HOURS TO GET RESOURCES
ON SCENE. JEAN FULLER ENDS IN IN
VENTURA COUNTY.
DOES HAVE THE ABILITY
FINANCIALLY AS A CONTRACT AGENCY
TO PRE DEPLOY RESOURCES AND HE
UP STAFF IS ORGANIZATION. AHEAD
OF THE THOMAS FIRE BY EIGHTY
PERCENT AND AND ALTHOUGH THAT
FIRE WAS DEVASTATING IT WAS NOT
AS DEVASTATING AS THE. NORTH BAY
FIRES AND WE WE.
PAY A LOT OF THAT.
CREDIT TO THE FACT THAT HE HAD
THOSE POSITIONS THE I'M SORRY
THOSE RESOURCES PRE POSITION AND
READY TO GO.
WERE THEY ABLE TO PUT OUT THE
FIRE IN KNOW BUT THEY WERE ABLE
TO MAKE RESCUES MAKE
NOTIFICATIONS AHEAD OF THE FIRE
AND ALSO TO BE ABLE TO DIRECT
REDIRECT THAT FIRE OUT OF
POPULATED AREAS. AND KEEP IT
INTO THE WILD LAND SO WE HAD
LESS PROPERTY LOSS AND LESS LIFE
LOST SO. FROM MY PERSPECTIVE
WERE HOPING THAT THE GOVERNOR
AND AND AND WITHOUT THROUGH THIS
COMMITTEE ALSO WILL SEE FIT TO
PROVIDE THAT ADDITIONAL FUNDING
TO THE OFFICE OF EMERGENCY
SERVICES TO ALLOW US TO PRE
POSITION THOSE RESOURCES. THANK
YOU.
THANK YOU I MIGHT ALSO ADD I
LEARNED VERY RECENTLY THAT
BECAUSE OF PRE POSITIONING.
BEFORE THE MONTICELLO MUDSLIDES
THEY WERE ABLE TO RESCUE.
THREE O'CLOCK IN THE MORNING
ABOUT EIGHT HUNDRED PEOPLE WHO
OTHERWISE MIGHT HAVE.
BEEN SERIOUSLY INJURED OR
PERISHED.
BUT THAT PRE POSITIONING SAVED
THE LIVES OF MANY OF THOSE
PEOPLE SO THANK YOU FOR THAT.
ALRIGHT.
WE HAVE DAN WADE UNITED POLICY
HOLDERS GOOD AFTERNOON SIR.
GOOD AFTERNOON MY NAME IS DAN
WADE AND I'M HERE REPRESENTING
UNITED POLICYHOLDERS OR YOU P.
FOR SHORT.
EPA IS A NONPROFIT CONSUMER
EDUCATION AND ADVOCACY
ORGANIZATION THAT HAS BEEN
HELPING DISASTER SURVIVORS
NAVIGATE FAIR CLAIM SETTLEMENTS
AND WORKING TO SOLVE. INSURANCE
MARKET PROBLEM SINCE THE
NINETEEN NINETY ONE OAKLAND
HILLS FIRE STORM.
KEEPING HOME INSURANCE AVAILABLE
AND AFFORDABLE IS AND WILL
ALWAYS BE A HIGH PRIORITY FOR U.
P..
WE PUBLISH INSURANCE SHOPPING.
GUIDANCE ONLINE. AND IN PRINT.
GENERALLY SPEAKING. CLIMATE
CHANGE DROUGHT AND FIRE
CONDITIONS ARE REDUCING
COMPETITION OPTIONS AND
AFFORDABILITY AND A GROWING
NUMBER OF REGIONS THROUGHOUT THE
STATE OF CALIFORNIA.
IT SEEMS QUITE CLEAR THAT
LEGITIMATE CONCERNS OVER THESE
PHENOMENA ARE BEING INFLATED BY
INSURERS OVERRELIANCE ON
PREDICTIVE ANALYTICS OVER
TRADITIONAL UNDERWRITING. WE
DON'T KNOW THE EXTENT OF HOW
THESE REDUCTIONS ARE IMPACTING
PROPERTY OWNERS IN THEIR
COMMUNITIES AND WE DON'T KNOW
WHETHER INCREASES. AND NOT
ADMITTED INSURERS MARKET SHARES
BECAUSE OF FOR CNCERN GIVEN
THEIR FORMS ARE AREN'T REGULATED
IN THEIR POLICY HOLDERS DON'T
HAVE INSOLVENCY PROTECTION.
BUT WE NEED TO KNOW IS. WHICH
ENSURES OUR MATERIAL MATERIALLY
REDUCING THE NUMBER OF HOMES
THEY'RE WILLING TO ENSURE AND
WHERE. WHICH INSURERS ARE
PICKING UP THESE NON RENEWED
HOMES.
HOW MANY OF THE INSURERS THAT
ARE PICKING UP AN HONOR AND
HOMES ARE NOT ADMITTED?
WHAT DOES HAPPEN TO THE FAIR
PLANTS POLICY COUNT? EXISTING
LIKELY TO INCREASE PROFITS THAT
WHICH INSURERS HAVE FAR
VOLUNTARILY IMPLEMENT IN
MITIGATION SUPPORT AND REWARD
PROGRAMS.
PATTERNS OF NON JOURNALISTS HAVE
BEEN A CONSISTENT LARGELY
TEMPORARY PROBLEM FOR SURVIVORS
IN THEIR MORE FORTUNATE
NEIGHBORS AFTER MANY CALIFORNIA
WILDFIRES.
HE PEERS PARTICIPATED IN
CREATING SOLUTIONS WE PUBLISHED
DROPPED BY OUR HOME ENSURE IN
CALIFORNIA WHERE TO GO FOR HELP.
I FREQUENTLY DOWNLOADED ITEM IN
OUR ONLINE CLAIM HELP LIBRARY.
WE HELPED CRAFT INNOVATIONS
INNOVATIVE SOLUTIONS SUCH AS THE
NINETEEN NINETY TO MATCH UP
PROGRAM WITH THE CITY OF OAKLAND
THAT CONNECTED HOMEOWNERS WITH
AGENTS. AND BROKERS THAT WITH
THE MAURICE AND OUR MORE RECENT
VERSION OF THAT PROGRAM THE
CALIFORNIA INSURANCE FINDER
YAFFA COPIA TOOL.
NO LESS FEARS YOU PIECE BEEN
CALLED UPON TO DEVOTE
SIGNIFICANT TIME AND ATTENTION
TO THE HOME INSURANCE
AVAILABILITY AND AFFORDABILITY
PROBLEMS IN THE STATE.
HOMEOWNERS IN AN INCREASING
NUMBER OF REGIONS ARE HAVING A
HARDER TIME FINDING REPLACEMENT
COVERAGE OPTIONS WHEN THEY'RE
NON RENEWED BUT I'M SURE THAT
MANY CASES THEY'VE PATRONIZE FOR
DECADES.
WELL THE EXTENT OF THE PROBLEM
IS UNKNOWN WE WANT TO GET AHEAD
OF IT BEFORE IT BECOMES A FULL
BLOWN CRISIS.
WE HAVE SERIOUS CONCERNS ABOUT
GROWTH IN THE SURPLUS LINES
MARKET WHERE THE POLICY FORMS
ARE UNREGULATED THE INSURERS ARE
NOT BACKED BY THE CALIFORNIAN
CHURNS GUARANTY ASSOCIATION. AND
WE BELIEVE THE CALIFORNIA FAIR
PLAN SHOULD REMAIN AS INTENDED.
THE INSURER OF LAST RESORT.
OUR MIND MAIN PRIORITIES ARE AS
FOLLOWS.
FIRST TO MAINTAIN STABILITY IN
ORDER AND PROPERTY INSURANCE
MARKETS AND PREVENT PRICE
GOUGING.
SECOND.
BUT CONSUMERS CONTEND WITH
AFFORDABILITY AVAILABILITY
MITIGATION FINANCING CHALLENGES
AND THIRD. INSURER SHOULD BE
PARTNERING WITH THEIR CUSTOMERS
BY PROVIDING TECHNICAL GUIDANCE
AND HELP WITH MITIGATION
INCLUDING APPROPRIATE RATE
REDUCTIONS AND INCENTIVES FOR
RISK REDUCTION. WE SPENT OVER
YEAR WORKING WITH PUBLIC
OFFICIALS AND AGENCIES INSURANCE
INDUSTRY REPRESENTATIVES TO GET
AN ACCURATE PICTURE OF NON
RENEWALS AND REPLACEMENT
POLICIES. THE CRAFT VOLUNTARY
STANDARDS FOR MITIGATION SUPPORT
AND REWARDS OUR EFFORTS WERE NOT
SUCCESSFUL AND IT'S CLEAR THE
LEGISLATURE MUST ACT.
UP CALLS UPON THIS BODY TO GIVE
THE CALIFORNIA DEPARTMENT OF
INSURANCE THE FULL AUTHORITY IN
RESOURCES NEEDS TO GATHER DATA
AND PREVENT OUR STATE FROM
FOLLOWING IN THE FOOTSTEPS OF
FLORIDA.
SIMILAR TO WHAT'S GOING ON IN
ARE STATE THE SERIES OF BAD
STORM YEARS IN THE FIRST DECADE
OF THIS CENTURY. COMBINED WITH
AN EXPLOSION THE USE OF
PREDICTIVE MODELING AND THE RATE
MAKING SPHERE TO NEGATIVELY
IMPACT COMPETITION AND SHIRTS
CONSUMERS.
THE COMBINATION DECIMATED THE
PRIVATE COMPETITIVE MARKET. AND
BECAUSE THE INSURER OF LAST
RESORT IN FLORIDA.
TO BALLOON INTO HAVING THE
LARGEST MARKET SHARE IN THE
STATE.
HOMEOWNERS THE REAL ESTATE
MARKET AND LOCAL GOVERNMENT
PROPERTY TAX REVENUE SUFFERED
ACUTE FINANCIAL HARM.
LEGISLATION MUST BE ENACTED THAT
WELL AT A MINIMUM. GENERATE
RELIABLE DATA ON ON RULES THE
POLICY COUNTS AND MARKET SHARE
OF THE CALIFORNIA FAIR PLAN AND
THE NON ADMITTED SURPLUS LINES
MARKET.
GIVES THE CALIFORNIA DEPARTMENT
OF INSURANCE AUTHORITY OVERSIGHT
AND SUBSTANTIAL REDUCTIONS IN
INCREASES IN THE MARKET SHARE OF
INDIVIDUAL INSURANCE COMPANIES
BOTH ADMITTED AND NOT ADMITTED.
STATUTORILY MANDATE MITIGATION
SUPPORT AND SUPPORT OR FOR
SUPPORT AND REWARD PROGRAMS. AND
LIMIT THE USE OF PREDICTIVE
MODELS AND RATE FILINGS AND
MANDATE THAT THEY FACTOR IN
LOCAL FIREFIGHTING RESOURCES IN.
THE REGION AND MITIGATION
MEASURES SUCH AS BRUSH CLEARANCE
UNDERTAKEN BY HOMEOWNERS.
A COMPLICATING DYNAMIC AND HOW
INSURERS ARE REACTING TO
SCIENTIFIC EVIDENCE OF CLIMATE
CHANGE IS A MAJOR CHANGE IN THE
WAY THEY UNDERWRITE. WHICH IS
ASSESSING AND PRICING RISK.
HUMAN UNDERWRITERS AND ACTUARIES
HAVE BEEN USING HISTORICAL DATA
TACK ASSESS RISK PRICE POLICIES
AND CHOOSE THEIR CUSTOMERS FOR
DECADES.
BUT NOW IT IS COMMON FOR
INSURERS TO RELY HEAVILY
SOMETIMES EXCLUSIVELY ON MODELS
THAT PURPORT TO PREDICT THE
FUTURE. BASED ON ALGORITHMS
INSTEAD OF HUMAN UNDERWRITERS
AND HISTORICAL DATA. WIN THE
CONSUMER ADVOCACY COMMUNITY HAVE
IDENTIFIED THESE MODELS IS A
MAJOR CAUSE OF REDUCED
AVAILABILITY AND AFFORDABILITY
OF CROP INSURANCE IN MANY
REGIONS OF THE U. S..
THE MODELS ARE DESIGNED BY
PRIVATE COMPANIES THAT SELL THEM
TO INSURERS.
YOU DON'T NEED TO BE AN
ECONOMIST AN MBA TO FIGURE OUT
THE COMPANIES THAT CREATE AND
SELL THESE MODELS WANT THEM TO
APPEAL TO INSURERS. INSURERS
THAT ARE IN THE BUSINESS OF
BEING PROFITABLE. MODELERS HAVE
AN INCENTIVE TO OVERSTAY RISK TO
HELP THEIR INSURANCE COMPANY
CLIENTS JUSTIFY RATE INCREASES.
INTEGRITY PROBLEMS WITH OUTCOME
ORIENTED PREDICTIVE ANALYTICS
ARE COMPOUNDING THE IMPACT OF
CLIMATE CHANGE ON INSURANCE
CONSUMERS. WE
I WOULD LIKE TO SEE A PRIVATE
MARKET SOLUTION OF THIS PROBLEM.
AND TO THIS AND WE'VE WORKED
KILEY WITH THE TREE MORTALITY
TASK FORCE AND ARE WORKING TO
CREATE A NETWORK OF INDEPENDENT
AGENTS AND BROKERS. WHO CAN HELP
CONSUMERS FIND AFFORDABLE
COVERAGE JUST AS WE DID AFTER
THE OAKLAND HILLS FIRE?
BY GIVING MORE TOOLS OF THE
DEPARTMENT OF INSURANCE IN
CODIFYING MITIGATION DISCOUNTS
AND SUPPORT. WE BELIEVE ARE
CRUCIAL PIECE TO SOLVE THIS
PUZZLE THANK YOU FOR YOUR TIME
AND CONSIDERATION OF THIS
IMPORTANT ISSUE.
INTERESTING.
IN MY CORRECT THEN THAT WHAT
YOU'RE SUGGESTING IS THAT THE
REASON FOR A LOT OF THESE
CHANGES IS THAT. THEY'RE NOT
USING OF PREDICTIVE.
MODELING INSTEAD OF THE MORE
TRADITIONAL APPROACHES.
IS THAT CORRECT YA OUR
IMPRESSION IS THAT THAT IS
DRIVING A LOT OF A LOT OF THE.
CONTRACTION IN THE MARKET.
KATE AND IN IS THAT WHAT IS YOUR
UNDERSTANDING OF THE RATIONALE
FOR DOING IT IN THIS FASHION.
WELL I THINK IT USED TO BE THE
CASE THAT IT WAS MORE COMMON FOR
INSURANCE COMPANIES TO SEND
SOMEBODY OUT TO INSPECT PROPERTY
WHEN THEY'RE GOING TO ENSURE
WHEN IT CAME UP FOR RENEWAL
THAT.
WITH A LARGE INSURANCE MARKET
I'M YOU KNOW THAT MAYBE ISN'T
SUSTAINABLE PRACTICE AND SO THIS
IS A. SORT OF.
LARGER.
YOU KNOW MORE EFFICIENT WAY OF
LOOKING AT LARGE NUMBERS OF
HOMES AND LOOKING AT ZIP CODES
AND AND OTHERS TO PRICE AND
ASSESS THE RISK.
AND ARE YOU SUGGESTING THAT IT'S
LESS ACCURATE OR JUST MORE
EXPENSIVE TO THE HOMEOWNER.
WELL IT IT IT IS LESS ACCURATE
IN THE SENSE THAT THE MODELS
THEMSELVES ONLY FACTOR IN. THE
RISK.
AS OPPOSED TO WHAT THE
HOMEOWNERS DOING OR WHAT THE
COMMUNITY MIGHT BE DOING TO.
PREVENT OR MITIGATE THE IMPACTS
OF FIRES AND SO WHEN THEY'RE
USED WITHOUT LOOKING AT
MITIGATION OR WHAT WITHOUT
LOOKING AT LOCAL FIREFIGHTING
RESOURCES ARE OR. OTHER THINGS
THAT COMMUNITIES MIGHT HAVE DONE
THAT WE THINK THAT DAY I'M.
MAYBE OVERSTAY RISK OR AT LEAST
REPRESENT RISK WITHOUT LOOKING
AT THE OTHER THINGS THAT ARE
REALLY BORN.
.
FOLLOW UP ON THE CHAIRS QUESTION
BUT THAT DOESN'T THE MARKETPLACE
KIND OF BALANCE THAT OUT SO
LET'S JUST SAY YOU'RE RIGHT OKAY
AND I DON'T KNOW WHETHER YOU'RE
RIGHT OR WRONG.
BOB BUT LET'S JUST SAY YOU'RE
RIGHT. I DOZEN ANOTHER INSURANCE
COMPANY SAY.
HAY.
MY COMPETITOR HERE IS WRITING
ADD UP POLICY PREMIUM THAT'S
MUCH HIGHER THAN. BASED ON OUR
ON THE GROUND LOOK AT THINGS WE
CAN WE CAN UNDERCUT THAT WITH
REASONABLE RISK THAT WE THINK
WE'RE WILLING TO UNDERTAKE. AS A
DOZEN THE MARKETPLACE KIND OF
BALANCE THAT OUT OVER TIME.
WELL THAT THAT MAY HAPPEN IN IN
SOME INSTANCES BUT I I THINK
THAT WERE CONCERNED THAT THERE'S
ENOUGH. ELISE ANECDOTAL EVIDENCE
ENOUGH EVIDENCE THAT'S BEEN
GATHERED BY THE DEPARTMENT TO
SUGGEST THAT THERE ARE PLACES IN
WHICH THERE WON'T BE SOMETHING
TO FILL. THAT GAP IF IF ONE.
SURE IS EASY THEY'RE CHARGING UP
A PREMIUM THIS ON AFFORDABLE OR
OR DECIDING TO LEAVE AN AREA.
HOME COMPLETELY I THINK THAT'S
WHAT THE FLORIDA STORY IS AS IT
I THINK TELLING IN THAT REGARD
BECAUSE THERE WERE A LOT OF
ENSURES THAT LEFT THE MARKET
AND.
BEFORE IT WAS TOO LATE YOU KNOW
THEN THEN PEOPLE START PAYING
ATTENTION TO THE ISSUE.
AND DID YOU HAVE ANY EVIDENCE
BEYOND ANECDOTAL EVIDENCE THAT
INSURANCE COMPANIES ARE LEAVING
THE MARKET.
WELL I I THINK THAT THE
DEPARTMENT HAS A LITTLE BIT OF
DATA THAT WE HAVE SURVEY DATA
THAT WE COLLECTED.
AS AN ORGANIZATION.
VOTE I THINK ONE OF THE THINGS
THAT WERE REALLY INTERESTED IN
IS GATHERING MORE DATA SO THAT
WE CAN GET AND ACT MORE ACCURATE
PICTURE OF THE OF THE PROBLEM
BUT. THE COMPLAINTS THAT WERE
RECEIVING AS AN ORGANIZATION AND
AND THE DATA THAT WE'VE BEEN
ABLE TO COLLECT ON IN THE
OAKLAND HILLS AND. IN SOME OF
THE RURAL COUNTIES I'M DOES
SUGGEST THAT THAT THIS IS
BECOMING A PROBLEM OKAY BECAUSE
I'M INTERESTED AS YOU ARE.
AND I THINK IT'S AGAIN THIS
BALANCING ACT OF THAT WE WENT
OVER REGULATED MARKETPLACE THAT.
IS GOING TO SELF CORRECT.
WITHOUT GOVERNMENT GET IN THE
WAY OR. DO WE NEED TO STEP IN TO
PROTECT CONSUMERS AND TO CREATE
AND MAKE SURE THAT THERE IS A
MARKET THANK YOU FOR YOUR
TESTIMONY.
HERE'S HOW I GUESS OF A WHAT'S
INTERESTING WITH THAT IS THE
FACT IT IS AT ALL STATE TO OUR
STATE FARM ONE OF THE MARKETS
WAS GONE FOR A DECADE IS NOW
COME BACK.
AND KICK IS HER ANY OF IT.
THERE IS OBVIOUSLY THIS CONCERN
THAT IGNORING THEORY MARKET
BASED
PA PROGRAMS WORK BECAUSE THE
COMPETITION AND THE ABILITY TO.
TO SORT OF MOVE INTO OUR AVOID
AND TO BE ABLE TO.
PROVIDE THE INSURANCE AND AND
TO REAP THE REWARDS.
OFFSET SIR COUNTERS THE THE.
A OTHER ASPECTS OF THIS SENATE
IS A QUESTION IT'S REGULATION TO
PROTECT US OF OR. AND I GET IN
THE WAY SO WHAT IS IT WHAT ARE
YOUR THOUGHTS. PARTICULARLY ON
THIS SPRING ON THIS SPECIFIC
SUBJECT AND FOLLOWING UP THE
QUESTION SENT BOTH THE SENATE
GLAZER NIGHT IT JUST PASSED.
WELL AND I THINK THAT LIKE I
SAID IN MY TESTIMONY WE WE WOULD
LIKE TO SEE A PRIVATE MARKET
SOLUTION WE WOULD LIKE TO SEE
THE INSURANCE MARKET CORRECT
ITSELF WE WOULD LIKE TO SEE.
ENSURES RECOGNIZING MITIGATION
STANDARDS AND YOU KNOW AT LEAST
ON THE SOMEWHAT UNIFORM BASIS
AND THAT WAS A LOT OF THE WORK
IN THE TREE MORTALITY TASK FORCE
WAS.
TRYING TO GET TO THIS IDEA OF IS
THEIR UNIFORM SET OF STANDARDS
THAT. YOU KNOW MOST OR ALL
CARRIERS WOULD AGREE TO THAT
WOULD MAKE A HOME INSURABLE FOR
EXAMPLE I KNOW THAT. I MEAN.
HELLFIRE MENTION THIS IN THEIR
TESTIMONY THAT THEY.
IN SOME CASES THEY'LL GO OUT TO
A PROPERTY AND DEL.
DO AN INSPECTION AND IF THE
INSPECTION COMES BACK.
YOU KNOW COMPLIANT THAT
INSURANCE COMPANIES WILL SAY. OH
OKAY I THINK WE WE WILL ACTUALLY
RENEW THAT POLICY BUT WHAT WE'RE
SEEING MORE AND MORE IS THA
THAT ISN'T HAPPENING IN SO THERE
NEEDS TO BE. SOME GREATER LEVEL
OF SPECIFICITY OF WHAT THE
HOMEOWNER CAN DO IN ORDER TO
KEEP THEIR INSURANCE OR KEEP IT
AT AN AFFORDABLE RATE.
AND SO I THINK WE TRIED TO GET
THERE AND I THINK THE REASON WHY
WE'RE HERE IS BECAUSE WE DIDN'T
GET THERE ON A VOLUNTARY BASIS
AND. ALL. OLIVEIRENSE INDICATES
THAT YOU KNOW THE FAIR PLAN
POLICIES ARE GROWING A LITTLE
BIT AND SURPLUS LINES ARE
GROWING A LITTLE BIT. AND THE
NON ADMITTED MARKET'S SHRINKING
A LITTLE BIT AND I THINK BEFORE
IT GETS TO BE.
YOU KNOW SIGNIFICANT AND THAT WE
WANNA.
TRY TO DO SOMETHING ABOUT IT.
MY LAST QUESTION THAT YOU
TALKED.
EARLIER ABOUT THE DESIRE TO
HAVE MORE DATA.
ARE YOU FINDING IT DIFFICULT TO
GET THAT DATA ARE THE INSURANCE
COMPANIES REQUIRED TO PROVIDE
IT.
IS THAT SOMETHING THAT YOU
THINK SHOULD I SHOULD BE A
REQUIREMENT THAT LEGISLATION
WOULD OFFER OR. IS IT JUST THAT
THE THE DATA HASN'T BEEN
COLLECTED I MEAN IS IS THERE A
DATA ISSUE.
YEAH I THINK THERE'S THERE'S TWO
SIDES OF IT ARE THE OMMISSIONER
MENTIONED THAT THERE IS A
CERTAIN AMOUNT OF. DATA
PARTICULARLY IN THE HIGHER RISK
CLASSIFICATIONS THAT NO ONE
INSURER SEEMS TO HAVE ENOUGH LAS
EXPERIENCE IN ORDER TO KNOW YOU
KNOW WHAT THE RISKS REALLY IS
AND SO. THEY'RE SORT OF PIECING
THAT TOGETHER AND I THINK THE
DEPARTMENT DOESN'T HAVE ALL OF A
REAL SENSE OF OF THAT PICTURE
AYE THERE AND THEY WOULDN'T THEY
HAVE ASKED TO HAVE MORE OF THAT
DATA. THE SECOND PART OF IT IS.
I THINK ON A GRANULAR LEVEL WE
WANT TO BE ABLE TO CONTINUE TO
MONITOR YOU KNOW BY COUNTY OR BY
ZIP CODE OR HIGH RISK AREA HOW
WE DEFINE HOWEVER WE DEFINE
THAT.
THE INCREASE IN THE FARE PLAN
POLICY COUNT THE INCREASE IN THE
NON ADMITTED MARKET AND THAT
DECREASES IN THE ADMITTED
MARKET.
AND THAT DATA IS YOU KNOW IT IS
COLLECTED IN SOMETIMES BUT I
THINK IT IS DIFFICULT AND I
THINK THE DEPARTMENT.
DOESN'T ALWAYS HAVE THE
RESOURCES OR.
AND THE INDUSTRY DOESN'T ALWAYS
HAVE THE APPETITE TO PROVIDE.
THOSE ARE DIFFERENT ISSUES OF
COURSE THE SOMETIMES WE HAVE TO
ENCOURAGE THAT APPETITE
SOMETIMES WE HAVE TO FORCE IT
AND SOMETIMES. YOU SHOULD MAKE
PEOPLE LEAVE IF THEY DON'T WANT
TO. SO.
A.
I THINK THAT DOES IT IN TERMS
OF.
.
MY QUESTIONS ON YOUR AND.
TESTIMONY DID HAVE ONE QUESTION
I BELIEVE FOR. MS A.
I HINTON.
THE A.
THE FACT THAT YOU HAVE A NUMBER
OF LOW INCOME COMMUNITIES THAT
THAT YOU REPRESENT.
.
HAS THERE BEEN ANY EFFORT TO TRY
TO PULL LOCAL RESOURCES TO
CREATE THEIR OWN KIND OF SELF.
INSURANCE
PROGRAM IS SET SOMETHING THAT'S
BEEN CONSIDERED.
BITS OF THE KING OF PRUSSIA
TOPIC OF DISCUSSION IT CERTAINLY
HAS BEEN A DISCUSSION.
I DON'T THINK WE'VE QUITE
GOTTEN THAT FAR YET BUT YEAH I
KNOW THE IDEA IS OUT THERE AND
AT SOME I MEAN WE.
I THINK WE WOULD EXPORT ANYTHING
HERE IF IT IF IT HELPED OUR
FOLKS OUT SO THAT'S THAT IS AN
IDEA THAT'S BEEN OUT THERE.
WE JUST HAVEN'T QUITE GOTTEN
THAT FAR YET.
I DO ONLY COUNTIES WORKING ON
SOMETHING THAT WERE CUT JUSTIN
INTERESTING POSSIBILITY AND AND
LASTLY FOR.
ACHIEVER CARMEN THE YEAH.
IF I UNDERSTAND CORRECTL WE
HAVE HAD DISCUSSIONS ABOUT THIS.
THE BIG PROBLEM WITH THE MUTUAL
AID SYSTEM IS THAT THERE'S RED
TAPE THE DELAYS THE ABILITY OF
AGENCIES TO WORK TOGETHER AND WE
DID HEAR THE IN SOME INSTANCES.
SOME OF THE DIFFERENT. GROUPS
OF THE HECK WITH THERE WERE JUST
GOING TO CALL YOU UP AND WILL
TAKE CARE OF THE PAPERWORK
LATER.
I DIDN'T IT MY NURSING IS THAT'S
ONE OF THE PROBLEMS IS THE
BUREAUCRATIC DELAYS. ANOTHER IS
THE THE FACT THAT IT TAKES SO
LONG TO GET OTHER AGENCIES
RESPONDING AND THAT WHICH YOU
WOULD LIKE. WOULD BE ABLE TO SEE
ONCE WE GET A LOOK AT.
YOU KNOW WE HAVE WHAT FOURTEEN
RED FLAG DAYS IN A ROW KNOWING
THAT THIS COULD VERY LIKELY
CAUSE FIRES AND. THE THOMAS FIRE
WHIC IS ONE OF I THINK FIVE
THAT TOOK PLACE ALL AT THE SAME
TIME. IN SOUTHERN CALIFORNIA
CHISUM'S COMMISSAR NEVER WENT
OUT PRESS OF THEM THEY WERE ABLE
TO PUT OUT.
WITH IT IS THAT SOMETHING THAT
YOU WOULD. LIKE TO SEE.
YES BY THE THE FUNDING YOU
THINK WOULD BE A CRITICAL
COMPONENT OF ALL OF THAT
ABILITY.
TO PRIYA OF PRE STAGED PRE
POSITION.
IN CASES WHERE YOU'RE HAVING
THAT KIND OF EXTREME WEATHER
THAT'S HIGHLY LIKELY TO CREATE A
FIRE PROBLEMS.
I YEAH I DO I THINK COME AGAIN
AT THAT THE SYSTEM IS SIXTY
YEARS OLD AND CERTAINLY THE
FIRES JUST IN MY CAREER OF
THIRTY FIVE YEARS THE FIRES HAVE
CHANGED SO DRAMATICALLY.
IN THE SPEED AT WHICH THEY'RE
DEVOURING YOU KNOW PROPERTY AND
LAND. SO FOR US TO BE ABLE TO
YOU KNOW I MENTIONED EARLIER
THAT WERE OPERATING NOW WITH
FEWER FIRE RESOURCES THAN EVER
BEFORE.
WE'RE MAKING MORE REQUESTS FOR
RESOURCES TO THE MUTUAL AID
SYSTEM THAN EVER BEFORE AND
WE'RE SEEING MORE UNFILLED
RESOURCE ORDERS THAN EVER BEFORE
SO TO BE ABLE TO PUT THESE
RESOURCES ON THE ROAD. I THINK
CHIEF PIMLOTT THAT THE DIRECTOR
OF CAL FIRE MENTIONED EARLIER.
OUR GOAL IS TO ALWAYS TRYING
KEEP THESE INCIDENTS AS SMALL AS
POSSIBLE AND WE CAN ONLY DO THAT
WITH RESOURCES.
BUT EVEN IF THE RESOURCES.
AREN'T ABLE TO KEEP THEM SMALL
WE CAN RE DIRECT THESE AND AS
YOU MENTIONED THAT SHE FOR
INSTANCE.
I EH. FORESIGHT TO MOVE THE
RESOURCES INTO MANSIO AHEAD OF
THE MUD SLIDES AB THAT'S A GREAT
EXAMPLE OF HOW MANY PEOPLE WE
CAN SAVE AND HOW MUCH SHE EVEN
IF WE CAN SAVE THE PROPERTY THAT
THE LIVES THAT WE SAVED BY THE
PRE POSITIONING THOSE RESOURCES
SO.
WHAT? WE ARE COALITION I'VE
NEVER SEEN THE FIRE AGENCIES IN
CALIFORNIA COME TOGETHER LIKE WE
HAVE NOW LOCAL STATE.
WE HAVE. LABOR ORGANIZATIONS AS
WELL AS MANAGEMENT ORGANIZATIONS
COMING TOGETHER TO SAY THIS PRE
POSITIONING OF RESOURCES ADDING
DISPATCHERS TO THE DISPATCH
CENTER IS THE HEAD OF CLIMATE
DRIVEN EVENTS.
WILL MAKE THE MOST DIFFERENCE
THAT WE'VE BEEN ABLE TO MAKE IN
IN YEARS.
THANK YOU OTHER QUESTIONS.
CENTER MORE.
THE TO ABSORB VILLAGE GO LET
LET'S DO THIS IN THE PROPER
PROTOCOL SENATOR GLAZER FOLLOWED
BY SENATOR MORE.
ALRIGHT I THANK YOU AND I I KNOW
WE'RE RUNNING SHORT OF TIME SO I
WANT TO BE.
A BRIEF BUT JUST SAID CHIEF A
CARMEN THANK YOU AGAIN FOR YOUR
ENGAGEMENT AND INSIGHT THAT
WE'VE HAD ONGOING CONVERSATIONS
WE APPRECIATE ALL YOUR GOOD WORK
AND. THE WORK OF ALL OF OUR
FIRST RESPONDERS AND.
BY MISTER WAY THANK YOU FOR YOUR
INSIGHT AS WELL I HAD A QUESTION
FOR MS HEATON.
HI YOU KNOW IT'S ALWAYS A
CHALLENGE UP HERE AND THIS THAT
AND THEN IS SEAT TO MANDATE
THINGS.
WHETHER IT'S ABOUT FIRE COVERAGE
RATES. BUT IT'S ALSO ABOUT.
WHERE THERE ARE COUNTIES AND IN
THIS CASE ARE RULE COUNTIES ARE
MAKING GOOD CHOICES IN TERMS OF
DEVELOPMENT? AND WHETHER CITING
DEVELOPMENT.
AND.
YOU KNOW I DON'T LIKE TO
MANDATE THOSE CHOICES ON YOUR
FOLKS
SURE THEY WOULDN'T LIKE THAT
EITHER.
BUT I YOU KNOW ARE THEY GONNA
REBUILD IN THESE HIGH RISK FIRE
AREAS ARE THEY GONNA PROVE
FURTHER DEVELOPMENT IN THESE
HIGH RISK FIRE AREAS.
YOU KNOW. THAT'S A DELICATE
PLACE FOR US TO BE AND I'M SURE
IT IS FOR YOU BUT ANY RESPONSE
TO THAT CONCERN. YEAH IT IS IT
IS A DELICATE TASTE FOR ME TO BE
BUT.
WHAT I CAN SAY IS THAT A NUMBER
OF OUR COUNTIES ARE ACTUALLY NO
GROWTH COUNTIES RIGHT NOW?
AND. A NUMBER OF OUR COUNTIES
THAT I'VE HEARD FROM THAT WERE.
AT IMPACTED BY THE NORTHERN
CALIFORNIA FIRES REALIZE THE
NEED TO REBUILD SMART AND TO
WHEN THEY DO REBUILD.
.
TICKLED IT A LOT OF
CONSIDERATION AS TO WHERE HOW.%
FIRE RISK. THEY'VE NOT HAD TO
DEAL WITH US BEFORE STOW THE
LEARNING PROCESS FOR THEM.
BUT THEY ARE TAKING ALL OF
THESE THINGS INTO CONSIDERATION
SO.
THEY THERE IS A RECOGNITION
THERE THAT THEY PERHAPS NEED TO
CHANGE
BUT FROM WHAT THEY'VE DONE IN
THE PAST AND THEY WANT TO BE AT
THE TABLE. IN ANY OF THOSE
DISCUSSIONS THAT MIGHT TAKE
PLACE GREAT AND I'M GLAD TO HEAR
THAT AND. IT'S SOMETHING THAT I
WANT TO MONITOR TO. THAT I'M
GONNA BE ETCHED IN SEEN THAT THE
CHOICES THEY MAKE ANOTHER IS A
LOT OF PRESSURE. LOCALLY TO THE
THE BUILD AND REBUILD AND I
CERTAINLY UNDERSTAND THAT BUT
THAT'S A PLACE WHERE I THINK THE
OVERSIGHT FROM THE
LEGISLATURE'S.
A SOMETHING THAT I THINK MIGHT
BE APPROPRIATE AND I HOPE THAT
THEY UNDERSTAND THAT I DON'T
WANT TO GET INVOLVED IN THEIR
CHOICES BUT I HOPE THEY MAKE
GOOD ONES THANK YOU.
MORE LIKE.
THE NOT JUST HEARD HOW MANY OF
YOUR RESIDENTS IN YOUR COUNTIES
PAY ALL CASH FOR THEIR HOMES.
YOU KNOW THAT STATE I DON'T
HAVE.
SO USUALLY WITH YOU DON'T.
YOU GET A RENEWAL NOTICE THAT
SAYS WE'RE NOT GOING TO GIVE
YOU.
YOUR INSURANCE.
THEN.
THE HOMEOWNERS FORCED TO LOOK
AROUND. FOR THE NEXT LETTER IS
GONNA BE FROM MORTGAGE COMPANY.
SAYING HEY YOU BETTER GET
INSURANCE OR OR ELSE SIR AND I
DON'T KNOW WHAT ELSE IS.
SO ONE METHOD WOULD BE JUST TO
PAY OFF THE MORTGAGE RIGHT THE
MENU DON'T WORRY ABOUT THE
INSURANCE.
HE CAN INJURE RICH ENOUGH TO BE
ABLE TO AFFORD THE LOSS. THE
SECOND IS YOU GOTTA SCRAMBLE ALL
OVER THE PLACE. SO I'M JUST
CURIOUS MISTER WADE WHAT IS THE.
INVOLVEMENT IN.
HOMEOWNERS NSURANCE FIRE
INSURANCE.
WITH THE MORTGAGE INDUSTRY HOW
THEY INTERFACING WITH THE
INSURANCE AGENTS THE INDUSTRY.
MA'AM RIGHT THANK YOU SO THE
AND.
MOST I MEAN GETTING EVERY.
MORTGAGE COMPANY WOULD REQUIRE.
HAD INSURANCE ON.
BASIC HAZARD INSURANCE ON THE
PROPERTY.
THEY'RE NOT NECESSARILY GOING
REQUIRE A FULLY COMPREHENSIVE
HOMEOWNERS INSURANCE.
PRODUCT AS WE KNOW IT.
THEY DON'T. NEED THE CONTENTS
AND SHARED THEY DON'T CARE ABOUT
ADDITIONAL LIVING EXPENSES AND
OTHER THINGS WHAT THEY WANT.
BASIC HAZARD INSURANCE
THAT PROTECTS THEIR COLLATERAL
SO WHAT WILL HAPPEN IS IF. AND
AND AT A POLICY HOLDERS NOT ABLE
TO PROVIDE INSURANCE.
NINO TO THEM IT FROM THE
PRIVATE MARKET OR. THEY LET IT
LAPSE TIME. AT THE MORTGAGE
COMPANY WILL FORCE PLACER LENDER
PLACE AN INSURANCE PRODUCT ONTO
THE THE COLLATERAL BUT IT WILL
BE A VERY A AT BASIC POLICY THAT
WILL. COVER YOU KNOW FROM. THE
pTHINGS TOMMEN WON'T COVER
PERSONAL PROPERTY OR ADDITIONAL
LIVING EXPENSES ARE THE THINGS
LIKE THAT. I'M JUST NEW TO THE
EXTENT OF THE VALUE OF THEIR
COLLATERAL AND TYPICALLY THOSE
ARE PROVIDED BY NON ADMITTED.
INSURANCE COMPANIES.
AND THEY COST MORE.
OKAY THANK YOU AND CHIEF JUST
ONE QUICK QUESTION.
CAL FIRE MENTION THAT THEY GET
CAP AND TRADE FUNDING.
AND I'M JUST WONDERING WE SAW A
LOT OF. FIRES WERE STARTED BY
ELECTRICAL LINES.
A POWER LINES AT THE BUTTE FIRE
BUT. THE NOME I MET CINNAMON
NAPA AND SANTA ROSA.
ARE YOU ARE USING ANY CAP AND
TRADE FUNDING TO TRY TO HARDEN
SOME OF THESE ELECTRIC LINES.
A NOT TO MY KNOWLEDGE WE E WERE.
ABLE TO GET SOME CAP AND TRADE
FUNDING TO INITIALLY DEPLOY FOR
THIS FIRE SEASON THE PRE
POSITIONING THAT I WAS TALKING
ABOUT THAT'S A ONE TIME FUNDING
NOTHING ON GOING IN THAT I I
BELIEVE LATER THIS WEEK WILL
LAST FOR. A SOME ADDITIONAL CAP
AND TRADE FUNDING TO BUY
ADDITIONAL APPARATUS TO THE
OFFICE OF EMERGENCY SERVICES BUT
NOTHING FOR HARDENING ELECTRICAL
THAT I'M AWARE OF. THAT'S MY
UNDERSTANDING OF TWO AND A HALF
DAYS OF WILDFIRES.
CREATES AS MUCH GREENHOUSE GAS
AS ALL THE CARS IN THE STATE.
RUNNING FOR ENTIRE YEAR SO WE'RE
WE'RE LOSING ALL THE BENEFIT
EVERYTHING THAT.
SACRAMENTO TRYING TO DO IT THE
STATE BY ELECTRIFYING EVERYTHING
SO.
WILL IT WILL HAVE TO TALK ABOUT
HOW WE HELP YOU BY PREVENTING
FIRES.
IF THAT'S WHAT'S HAPPENING IN MY
AREA. AND ANNA AND I SAW IT IN
IN SENATE ROSES TRAGIC WITH THAT
THESE TRANSFORMERS BLOWING UP.
WE WERE WE WOULD AGREE THERE'S A
LOT OF WORK TO BE DONE WITH THE
ELECTRICAL UTILITY COMPANY
ALLOWING THEM TO SHUT OFF POWER
DURING THESE CLIMATE DRIVEN
EVENTS AND THINGS LIKE THAT SO
WE'RE VERY INTERESTED IN THOSE
DISCUSSIONS.
THANK YOU MADAM BACKBENCHER.
THINKING YES I WISH THAT WERE AN
EASY DISCUSSION IN THE THOMAS
FAR THEY SHUT OFF THE
ELECTRICITY SO THAT THE PUMPS
COULDN'T PUMP SO THAT THEY COULD
GET WATER TO THE HOUSES OF THE
HOUSES BURNED DOWN LEAST THOSE
ARE.
SOME OF THE ALLEGATIONS AND
GARAGE DOORS SHUT SO THIS IS A
VERY COMPLICATED ISSUE I THINK
WE'VE NOW HAD FIVE THIS IS HER
FIFTH HEARING FOR THE. COMMITTEE
ON EMERGENCY MANAGEMENT WERE.
WE'VE HOPEFULLY IDENTIFIED MOST
OF THE CHALLENGES THAT WE'RE
FACING HOW WE RESOLVE THEM
COURSES.
IS.
GOING TO BR ANOTHER CHALLENGE
BUT WITH THAT THANK YOU FOLKS
FOR YOUR TESTIMONY AND YOUR
WILLINGNESS TO BE HERE.
GUY I HAVE A FEELING THIS IS
JUST GOING TO BE AN ONGOING
CONVERSATION BUT APPRECIATE YOUR
HIGHLIGHTING THESE ISSUES FOR US
THANK YOU SO MUCH.
OUR FINAL PANEL BE FOR PUBLIC
COMMENT IS SO ARE HOMEOWNERS
INSURERS REEXAMINING THE
CALIFORNIA MARKET THIS IS SORT
OF THE.
THE THE FINAL QUESTION THAT WE.
WANTED TO ADDRESS HERE TODAY SO
COULD WE HAVE.
CARA CROSS GENERAL COUNSEL. OF
FOR THE PERSONAL INSURANCE
FEDERATION OF CALIFORNIA BILL.
CLARK ARE CLINICALLY.
WITH SUTTER INSURANCE NORWOOD
REPRESENTING THE INDEPENDENT
INSURANCE AGENTS AND BROKERS TO
CALIFORNIA ROB DAYR. Y.
PRONOUNCE IT RIGHT.
AT GEORGE PETERSON INSURANCE
AGENCY OF SANTA ROSA YOU'VE
PROBABLY BEEN PRETTY BUSY
RECENTLY. AND TIMBER NET
CORPORATE VICE PRESIDENT AND
MANAGING DIRECTOR BURN XIN
WILCOX REPRESENTING THE SURPLUS
LINE ASSOCIATION. OF CALIFORNIA.
FOLKS THANK YOU ALL FOR BEING
HERE.
STARTING.
FROM THE SIDE JUST IN AND
CONSPICUOUSLY.
GREAT.
ALRIGHTY SO.
.
WOULD LIKE TO TRY FIVE MINUTES
APIECE AND WE DO ACTUALLY HAVE
LITTLE TIME FOR QUESTIONS SO.
IF YOU COULD TRY TO KEEP TO
THAT.
TIME FRAME IT WOULD BE WONDERFUL
IF WILL START IF WE COULD LET'S
START WITH CARA CROSS THANK YOU
SENATOR AYE.
AYE PREPARE TEN MINUTES BERMAN
GONNA TALK REAL FAST AND CUT OUT
SOME OF THE THINGS THAT PEOPLE
ARE VERY SAID WHY DON'T WE MEET
YOU HALFWAY HOW ABOUT SEVEN THE
TAKE IT.
SO CARE ACROSS WITH THE PERSONAL
INSURANCE FEDERATION OF
CALIFORNIA AND TOGETHER ARE ON
SIX MEMBER COMPANIES WRITE THEM
MAJORITY OF THEM MARKET
HOMEOWNERS MARKETPLACE IN
CALIFORNIA. ON THE GUY WE ALL
HAVE THE SAME GOAL HERE WHICH IS
AVAILABILITY OBVIOUSLY INSURERS
WANT TO BE ABLE TO MAKE
INSURANCE AVAILABLE AND
CONSUMERS DEFINITELY NEED
INSURANCE.
AND I THINK IT'S REALLY
IMPORTANT THAT WE'RE HAVING THIS
INFORMATIONAL HEARING TODAY
BECAUSE ALLOWS EVERYBODY TO
LEARN WHAT THE ISSUES ARE. AND
HOPEFULLY BE ABLE TO COME UP
WITH SOLUTIONS OF NECESSARY TO.
THAT WILL KEEP.
THAT'S PROTECT US THAT WILL BE
ABLE TO PROVIDE INSURANCE IN THE
FUTURE. IT'S ALL START BY
EMPHASIZING THAT WITH RESPECTIVE
EL ABILITY HOMEOWNERS INSURANCE
MARKETPLACE IN CALIFORNIA IS
WORKING.
HOMEOWNERS ARE FINDING INSURANCE
TO REBUILD THEIR HOMES IN THE
EVENT OF WILDFIRE AND INSURERS
HAVE BEEN RESPONDING IN MASS TO
HELP HOMEOWNERS WHO LOST THEIR
HOMES IN THE RECENT WILDFIRES.
REBUILD THEIR LIVES. SINCE DAY
ONE INSURANCE THE BEEN THERE.
PATH HEATHER CATASTROPHE TEAMS
ON THE ROUND TO HELP WITH
RECOVERY PROCESS IT SHOULD
IMMEDIATE PAYMENTS FOR HOUSING
LIVING EXPENSES. AND QUICKLY
RESPONDING TO CLAIMS.
AS FOR AVAILABILITY MOVING
FORWARD ALLOWING THE MARKET TO
CONTINUE TO FUNCTION WITHOUT
DISRUPTED MANDATES WILL PROVIDE
HOMEOWNERS THE ABILITY ABILITY
TO CONTINUE FIGHTING. HOMEOWNERS
INSURANCE EVEN IN THE HIGH RISK
AREAS. BUT THE CALIFORNIA
DEPARTMENT OF INSURANCE IN THE
CAL FIRE NUMBERS WE BELIEVE
DEMONSTRATE THAT THE HOMEOWNERS
ARE FINDING INSURANCE IN THE
MIDMARKET.
I WILL.
COMMENT BRIEFLY ON THE DECEMBER
WHITE PAPER THAT THE DEPARTMENT
OF INSURANCE ISSUED THAT
COMMISSIONER JONES REFERENCED.
DEPARTMENT REPORTED.
FROM TWENTY TEN TO TWENTY
SIXTEEN THAT THERE WERE THE PUMP
OF. US IN COMPLAINTS ABOUT
RENEWAL SAN NON RENEWALS FROM
FORTY ONE COMPLAINTS IN TWENTY
TEN TO A HUNDRED AND FORTY THREE
COMPLAINTS IN TWENTY SIXTEEN.
HUNDRED FORTY THREE COMPLAINTS
WE DO NOT BELIEVE OUT OF FOUR
POINT SIX MILLION OR MORE
RESIDENTIAL POLICIES IN THESE
HIGH RISK AREAS INDICATES AN
AVAILABILITY PROBLEM.
IF ANYTHING IT DEMONSTRATES A
MARKETPLACE IS WORKING.
OTHER NUMBERS ON NEW RENEWED AND
I'M REALLY POLICIES REFUTE ANY
ASSERTION THAT THERE IS A
PROBLEM. OF THE OVER SEVEN
HUNDRED FOURTEEN THOUSAND
POLICIES IN SELECTED COUNTIES
WITH THE HIGHEST PERCENTAGE HIGH
RISK BUYERS. JUST ABOUT ONE
PERCENT OF THESE POLICIES WERE
NON RENEWED BY THE INSURER.
WHILE THE OTHER FIBERS THAT WERE
ACTUALLY NINE WE NEED BY THE
POLICY HOLDER.
THE LOW USE OF THE CALIFORNIA
PET PUT THEIR PLAN WHICH IS A
SAFETY NET AS YOU'VE HEARD ALSO
DEMONSTRATES A HEALTHY PERKY
MARKETPLACE HIM I WILL NOT
DETAIL WHAT THE FAIR PLAN DOES
THIS. HURT.
INDEED SOME HOMEOWNERS MAY
PERCEIVE AN INDELIBLE A PROP
PROBLEM IF THERE LONGTIME
INSURER. WILL NOT RENEW THEM
THEY CANNOT FIND COVERAGE ON
THEIR FIRST ATTEMPT HOW OR IF
THEY CANNOT FIND COVERAGE WITH
THE BIG NAME INSURER.
HOMEOWNERS ARE FINDING INSURANCE
COVERAGE IN THE MIDMARKET.
SOMETIMES IT WILL REQUIRE
SHOPPING AROUND TO GETTING THIS
DISTANCE OF INDEPENDENT AGENT OR
BROKER AS YOU'LL HEAR LATER ON.
OR SEVEN JURORS CHOOSING NOT TO
RENEW IN CERTAIN AREAS YES
BUT AT THE SAME TIME OTHER
INSURERS ARE WRITING THEIR RISK.
THERE ARE MANY IMPORTANT REASONS
WHY SOME INSURERS MAY NOT BE
ABLE TO RENEW ALL THEIR
CUSTOMERS.
IT'S NOT BECAUSE THEY DO NOT
WANT THE BUSINESS IMPACT ONE MY
LARGE CARRIERS TELLS ME THAT IT
TAKES FOUR TIMES AS LONG AND
FOUR TIMES THE COST TO GET A
NEW.
CUSTOMER AS IT DOES TO KEEP A
CURRENT ONE.
BUT INSURERS NEED TO RESPONSIBLY
MANAGE AND SPREAD THEIR RISKS SO
THEY CAN BE THERE FOR ALL OF
THEIR CUSTOMERS.
A BIG ISSUE WITH RESPECTIVE L.
ABILITY IS OVER EXPOSURE. IF
INSURANCE OVER EXPOSED IN A
PARTICULAR HIGH RISK AREA THAT
THEY NEED TO LOWER THE
CONCENTRATION PREVENT FINANCIAL
IMPAIRMENT FROM ONE MAJOR FIRE.
IT'S PRO FINANCIAL SOLVENCY RISK
MANAGEMENT ENSURES THAT INSURERS
CAN KEEP THEIR PROMISES TO ALL
OF THEIR CUSTOMERS.
ACROSS THE STATE HER DEPENDING
ON THEM.
BUT IT'S IMPORTANT TO NOTE THAT
WERE ONE INSURER MAY NEED TO
PREVENT OVER CONCENTRATION IN
THE AREA. THE NUMBERS SHOW THAT
INSURANCE WITH LESS
CONCENTRATION RISK HAVE STEPPED
INTO THE MARKET TO ADDRESS
CONSUMER NEEDS.
IN A COMPETITIVE MARKETPLACE
THIS WILL CONTINUE.
SOME INSURERS ALSO NEED TO RENEW
CUSTOMERS IN AREAS WHERE THE
DEPARTMENT OF INSURANCE DOES NOT
PERMIT PERMIT AN ADEQUATE RATE.
BECAUSE INSURERS ARE PRICE
CONTROLLED BY THE STATE THEY
MUST REACT TO RATE SUPPRESSION
BY REDUCING THEIR EXPOSURE TO
RISKY AREAS OR BE FORCED HAVE
OTHER PARTS OF THE STATE
SUBSIDIZED RISKY AREAS.
THAT WOULD THAT MEAN FOR
AFFORDABILITY.
JUSTIFIABLY HOMEOWNERS IT
HOMEOWNERS INSURANCE DOES COSTS
BORNE RISKIER AREAS OF THE
STATE.
WE WOULD EXPECT THIS BECAUSE THE
PRICE MUST RELIEF REFLECT THE
RISK IN ORDER TO PAY CLAIMS. TO
DO OTHERWISE WOULD AND FAIRLY
RESULT HOMEOWNERS IN OTHER AREAS
OF THE STATE SUBSIDIZING THOSE
CHOOSING TO LIVE IN RISKIER
AREAS.
HONG CHURNS RATES MUST BE
APPROVED BY THE DEPARTMENT OF
INSURANCE AND MUST BE ACCURATELY
SOUND CANNOT BE INADEQUATE
EXCESSIVE OR UNFAIRLY
DISCRIMINATORY.
THE DEPARTMENT OF INSURANCE'S
WHITE PAPER QUESTIONS
AFFORDABILITY OF HOMEOWNERSHIP
RATES
HOWEVER THE DEPARTMENT ITSELF
MISS PRE APPROVAL HOMEOWNER
INSURANCE RATES INCLUDING THE
FAIR PLAN IN THE CALIFORNIA
BEFORE INSURERS CAN USE THEM.
SOME OF SUGGESTED UP TO I DO
WANT TO TALK ABOUT THIS THAT
MITIGATION EFFORTS SHOULD BE
CONSIDERED TO ADJUST RATES.
IT IS DIFFICULT WERE RATES ARE
ALREADY INADEQUATE. REGARDLESS
IT SHOULD BE EMPHASIZED THAT
MEDICATION IS JUST ONE PART OF
THE EQUATION.
MANY FACTORS GO INTO THE
UNDERWRITING OF RISK IN ADDITION
TO MEDICATION INCLUDING
VEGETATION WHICH IS ACTUALLY THE
PREDOMINANT CONCERN. ROAD ACCESS
AND SLOW.
SOME OF THESE FACTORS CANNOT BE
CONTROLLED EVEN WITH MEDICATION.
FOR EXAMPLE DURING THE RECENT
WILDFIRES HELLFIRE COULD NOT
DRIVE DOWN CERTAIN CLOTHES SOCKS
BECAUSE THEY WEREN'T WIDE ENOUGH
FOR THEM TO BE ABLE TO TURN
THEIR ENGINES AROUND.
STILL INJURIES GENERALLY SUPPORT
HOME SPECIFIC AND COMMUNICATE
COMMUNITY MITIGATION EFFORTS.
INSURERS AT BUNDY COMMUNITY
EFFORTS FOR MANY YEARS THROUGH
GRANTS TO FIRE CITY COUNCILS
EMPIRE WHITES COMMUNITIES.
THEY ALSO SUPPORT MORE STRINGENT
BUILDING SANDERS WITH FIRE
RESISTANT MATERIALS AND
TECHNIQUES. HOWEVER THERE ARE
LIMITS TO THE ABILITY OF
HOMEOWNERS AND COMMUNITIES TO
PROTECT HOMES WHEN CONFRONTED
WITH THE MAJOR UNCONTROLLED
FIRE.
WITH ALL THAT IN SANTA ROSA I
ALSO WAS RECENTLY AT A TRIMMERS
HOLLY TASK FORCE.
MEETING WHERE CAL FIRE PRESENTED
AND. SHOWED DIFFERENT AREAS OF
THE CULT OF THE SENATE AS AN ART
BAY FIRES. ON THE SHOULD ONE
EXAMPLE OF A FIRE WISE COMMUNITY
THAT SURVIVED AND ONE THAT DID
NOT AND SO WHEN I ASKED.
KELP WIRED.
WHAT DO WE DO ABOUT LITIGATION
IS AT WORK IN THE SAID PAUL
SOMETIMES IT DOES AND SOMETIMES
IT DOESN'T?
SO WE WOULD YOU KNOW OBVIOUSLY
WANT TO SUPPORT PEOPLE
MITIGATING BECAUSE THEY CAN'T
HELP BUT IT'S VERY DIFFICULT TO
PROVIDE DISCOUNTS ESPECIALLY
THOSE INADEQUATE RATES.
FIRST SOMETHING THAT MAY NOT
WORK AS WELL.
BEFORE I CONCLUDE I FEEL
COMPELLED I DO FEEL COMPELLED
THE COMMENT GENERALLY ON THE
FACT THAT SEVENTY PIECE OF THE
LEGISLATION HAD BEEN INTRODUCED
TO ADDRESS PROBLEMS THAT MAY NOT
EXIST.
EVER HAVE A COMIC THAT I WILL
COME AT THE MANY THESE COMMENTS
CONCEPTS PLACE SIGNIFICANT
RESTRICTIONS ON THE ABILITY OF
INSURERS TO RESPONSIBLY MANAGING
BALANCE THEIR BUSINESS. AND
COULD CAUSE A TRUE AVAILABILITY
CRISIS AND WE DON'T WANT.
IN AFTERMATH OF NORTHRIDGE
EARTHQUAKE. WE WE SAW WHAT COULD
HAPPEN STATE LAW MANDATED
INSURANCE TO OFFER EARTHQUAKE
COVERAGE EVERYTIME THEY SOLD
HOMEOWNERS INSURANCE POLICY.
FOLLOWING THE NORTHRIDGE
EARTHQUAKE INSURANCE BEGAN
RESTRICTING HOMEOWNERS INSURANCE
SALES IN THE STATE BECAUSE THEY
COULD NOT RESPONSIBLY CONTINUE
TO WRITE EARTHQUAKE INSURANCE
POLICIES. AS THE PROBLEM MORE ON
THE REAL ESTATE INDUSTRY BEGAN
TO EXPERIENCE DIFFICULTIES WITH
S. GROWS AND CALIFORNIA CONDOM
USE AFFECTED. THE STATE
RESPONDED BY CREATING THE
CALIFORNIA EARTHQUAKE AUTHORITY.
THE DIFFERENT THAN THE CALIBER
AND DIFFERENT THAN CALIFORNIA
CREATED FAIR PLAN. BOTH SERVE
THE SAME PURPOSE OF ENSURING AN
OPTION THAT IS ALWAYS AVAILABLE
FOR PHONE MANNERS.
HOWEVER UNLIKE EARTHQUAKE
INSURANCE HERE THERE IS A
THRIVING PRIVATE MARKET FOR FIRE
INSURANCE THAT WE NEED TO
PRESERVE. RATHER THAN JEOPARDIZE
WITH LEGISLATION THAT COULD
RESULT IN UNINTENDED
CONSEQUENCES.
IN CONCLUSION CALIFORNIA'S
INSURANCE MARKET IS HEALTHY AND
VIABLE. INSURANCE IS AVAILABLE
THROUGHOUT THE STATE. IN THIS
NEW NORMAL OF LONGER FIRE
SEASONS AND MORE FIRED DUE TO
DROUGHT AND OUTDATED FORESTRY
MANAGEMENT PRACTICES. COMMITTEES
MAY NEED TO SHOP AROUND MORE BUT
THERE ARE OPTIONS AVAILABLE.
AS LONG AS INSURERS ARE ABLE TO
MANAGE THEIR RISK APPROPRIATELY
AND HAVE ADEQUATE RATES TO PAY
CLAIMS INSURERS WILL CONTINUE TO
WRITE IN THE STATE.
WE LOOK FORWARD TO WORKING WITH
THE LEGISLATURE TO COME TO
SOLUTIONS TO INSURING THAT JUST
INSURANCE MARKET WORKS AND
CONTINUING TO SUPPORT EFFORTS TO
PROPERLY MANAGE OUR FORESTS.
THANK YOU FOR THE OPPORTUNITY
SPEAK.
THANK YOU VERY MUCH OUR NEXT
SPEAKER IS BILL CARNEGIE. DID I
PRONOUNCE RIGHTS ARE YOU DEAD
THANK YOU.
COME MY NAME IS BILL KLEIN QUE
I'M.
THE OWNER AND PRESIDENT OF A
SMALL DOMESTIC INSURANCE COMPANY
CALLED SATTAR. WERE DOMICILED IN
PETALUMA CALIFORNIA AND I LIVE
IN OF AUTO.
.
SOUTHERN CHARM'S COMPANY RIGHTS
BETWEEN TWENTY AND THIRTY
MILLION DOLLARS IN PREMIUM
DEPENDING ON.
THE MARKETPLACE OF THAT ABOUT A
MILLION YEARS CALIFORNIA
HOMEOWNERS.
ALL OF OUR BUSINESSES IN
CALIFORNIA WE DO RIGHT IN FIRE
PRONE AREAS.
ABOUT FIFTEEN YEARS AGO I WAS
ASKED TO JOIN A.
NEWLY STARTED LOBBYING GROUP
CALLED PADDICK.
PATTED HIS MEDICAL OF ONLY
DOMESTIC INSURANCE COMPANIES
COMMITTED TO RETELL PRODUCERS
ARE COMMITTED TO THE CALIFORNIA.
.
INFRASTRUCTURE.
ALL OF OUR THIRTEEN MEMBERS ARE
PRETTY PROACTIVE AND WE WE TRY
TO GET THE WORD OUT OF WHAT'S
BEST FOR US AND WE START THAT
ORGANIZATION BECAUSE WE DON'T
THINK OUR VOICE WAS HEARD SORTS
OF OUR PLEASURE. VERY MUCH A
PLEASURE MINE TO BE HERE TODAY
TO BE ABLE TO GET MY VOICE HEARD
IN THIS TOPIC.
.
WHEN WE TALK ABOUT AVAILABILITY
INSURANCE ONE OF THE THINGS THAT
IS OVERLAPPING I HAVEN'T HEARD
ANYONE TALK ABOUT YET IS BUYING
INSURANCE IS A STRATEGY.
WHEN OUR FUTURE PART ME LET'S
GO BACK AND KIND OF LOOK AT THE
TOPS FIRE THAT STUFF TWENTY
MILES FROM OUR OFFICES.
.
WE DIDN'T LOSE A SINGLE HOME IN
THE TOPS FIRE WE HAD.
EMPLOYEES LOSE THEIR HOMES MY
DAD LOST HIS HOME IN A
CONVALESCENT MEMBER CARE UNIT.
IT WAS A PRETTY SCARY COUPLE
DAYS.
.
PART WITHOUT SAID DOWN LET'S
START BY CALISTOGA ROAD IT'S
PRETTY MUCH THE ORIGIN OF THE
FIRE MY FATHER IN LAW LIVES UP
THERE HIS HOUSE IS A DISASTER IT
IS A WOOD SHAKE A STRUCK A FRAME
STRUCTURE HOUSE WOULD TACK
AROUND IT. FUEL LOADS LITERALLY
TOUCHING THE HOUSE HE'S GOT
COMBUSTIBLE FLUIDS FUELS DIESEL
FUELS.
HE'S GOT MANZANITA AT THIS THIS
IS A A RISK THAT. NO ONE WOULD
WANT TO TOUCH HIS ON STEEP GRADE
HE'S GOTTA KNOW ACCESS ON THE
STREET AT ALL. AND.
HIS STRATEGY TO MINOR CHARGES
CAN BE VERY DIFFERENT US MOVE
DOWN THROUGH.
THE VALLEY BACK UP TO FOUND
GROW WE RENTED A MILLION DOLLAR
HOMES MAYBE MULTIMILLION DOLLAR
HOMES AND UNDERWRITERS DREAM
COME TRUE THEIR STUCCO CITING
TILE HOUSES. CEMENT RETAINING
WALLS NON COMBUSTIBLE PLANTS
THERE'S HUNDREDS TWO HUNDRED
THREE HUNDRED FEET BETWEEN THESE
THESE VERY LARGE HOMES.
THEN FOR WHICH WE GO DOWN
ACROSS WANNA WANNA GET TO WITH
THE TOPS ARE WITH THE TYPES FIRE
HITS COFFEE PARK.
THAT IS A BEAUTIFUL NEIGHBORHOOD
HARDWORKING PEOPLE IT'S KIND OF
A STARTER COMMUNITY MAYBE FOR A
LOT OF PEOPLE NEW HOME BUYERS.
COULD BE HARD WORKING PEOPLE
LIVE.
LIVED AND STILL LIVING COFFEE
PARKING AND RETIREES ARE
DOWNSIZING.
THE STRATEGY THERE IS REALLY
KIND OF WHAT EVERYONE'S BEEN
TALKING ABOUT THAT'S PRICE THAT
ONE AFFORDABLE INSURANCE.
COFFEE PARK IS.
AN ABSOLUTE WONDERFUL PLACE TO
LIVE AS WE MOVE TO FOUND GROW
THE STRATEGY THERE IS NOT PRICE
IT'S COVERAGE THAT MIGHT WANT
ADMITTED MARKETS THEY MIGHT
WANNA CALIFORNIA TOM SOUTH
COMPANY. BUT THEY HAVE
INTELLECTUAL PROPERTIES AND IN
BED IN THE HOMEOWNERS THEY HAVE
FINE ARTS JEWELRY PAINTINGS IT'S
A VERY DIFFERENT POLICY THAN A
STANDARD HOMEOWNER'S POLICY. THE
IDEA RIGHT NOW THAT ONE SIZE
FITS ALL SHOULD BE VERY CLEAR IT
IS IT IS ABSOLUTELY NOT
ACCEPTABLE WITHIN THE RANK OF
WHAT WE ENSURE. TO WHAT THE
SUPER STOCK COMPANIES TO ENSURE
THAT WE GET BACK TO MY FATHER IN
LAW AND HIS POOR STRATEGY MATT
DISASTER OF A STRUCTURE IS. HELD
HELD HELD TAKE ANYTHING ANY
SLOPPY COMPANIES WANT TO GET
THEM BECAUSE HE JUST NEEDS
COVERAGE AND HE'S GONNA PAY FOR.
FOR HIS ISOLATIONISM.
.
SO. WITH THAT SAID I THINK THAT.
.
THE HEALTH OF THE ECONOMY HEALTH
OF FIRE INSURANCE IS IS VERY
PREVALENT MY COMPANY OUT OF ALL
TAKE EVERY SINGLE HOUSE IN
COFFEE PARK. AS THEY REBUILD
TAKE EVERYONE OF THEM UP IN
FOUNTAIN GROVE ALRIGHT ONE AND
THREE I STILL NEED SPREAD
ARREST.
IN A MATTER WILL MY FATHER LA
DOESN'T MIND SHARING HIS
PROPERTY.
.
SO.
HIS THAT IS VERY COMFORTING HA
HA HA HA.
SO I'M HIDING IN THERE THERE'S A
TON OF MONEY POURING INTO ON THE
INSURANCE ARENA I'M ONE OF THE
THINGS THAT WE HAVE TO DO IN
ORDER TO MAKE SURE WE'RE HEALTHY
IS WE HAVE TO OBVIOUSLY WE ARE
REGULATORY CONSTRAINTS AND
PASSED. AS WELL AS ON OUR OWN RE
INSURANCE PURCHASING WHICH GIVES
US FURTHER SPREAD OF RISK.
.
I THINK YOU KNOW IF YOU REALLY
FEEL LIKE THERE IS.
NOT ENOUGH COMPETITION FOR
DYNAMIC PLACE NOT JUST SOME FUN
WITH NUMBERS THERE'S PROBABLY
THIRTY FIVE HUNDRED FOUR
THOUSAND INSURANCE COMPANIES
REGULATOR NOT REGULATED BUT
REVIEWED BY AND PASSED. ON
THERE'S ONLY TWELVE HUNDRED
FORTY TO THOSE THAT ARE LICENSED
TO DO BUSINESS IN CALIFORNIA
THAT WOULD INCLUDE LIFE AND
HEALTH.
OF THOSE ONLY A HUNDRED AND
SEVEN COMPANIES HAMAR ACTUALLY
LICENSE STRIPED HOMEOWNERS
BUSINESS IN CALIFORNIA.
OF OUR. DOMESTIC COMPANIES THAT
ARE MEMBERS OF PATRICK.
THERE'S PROBABLY ONLY ABOUT SO
TWELVE THEIR WRITING THAT ARE
DOMICILED HERE SO I WOULD CAN
REVERSE THE WHOLE BOMB. YOU KNOW
DISCUSSION YOU GOTTA LOOK AT
LOOK AT IT UPSIDE DOWN LET'S
INVITE MORE CARRIERS AND.
TO DO THAT.
.
IT KIND OF A FUNNY TOPIC THESE
EAST COAST COMPANIES SOUTHEAST
COMPANIES MIDWEST COMPANIES ALL
THE MUTUALS. THEY'RE MORE AFRAID
OF THE CALIFORNIA GOVERNMENT
THAN THEY ARE THE WILD FIRES SO
IF YOU WANT A DYNAMIC PLACE YOU
SHOULD WELCOME THESE COMPANIES
AND.
ALLOW THEM KIND OF THE FREEDOM
TO MOVE.
ALLOW THEM ONE COMPANY TO
CREATE A STRATEGY FOR THE
WEALTHY ANOTHER FOR
AFFORDABILITY AND I THINK YOU
HAVE A REALLY DYNAMIC WORKPLACE
AND I. SITTING HERE NEXT TO.
OF A FRIEND AND FELLOW
PROFESSIONAL THERE'S AN ARMY OF.
AT INDEPENDENT BROKERS.
THEY'RE HELPING INSUREDS
EVERYDAY LIKE THAT NUMBERS ARE
FORTY SOMEWHAT THOUSAND
INDIVIDUAL BROKER LICENSES OUT
THERE THERE'S A LOT TO HELP
NATURAL RESOURCES RIGHT NOW.
THAT WOULD HELP A BROKER GET
BUSINESS TO ACCOMPANY.
AND WE FIGHT REALLY HARD FOR
BUSINESS AND I'M ONLY ABLE TO
WRITE ABOUT A MILLION OF IT SO
WELL AND IT IS A VERY DYNAMIC
ABOUT MARKETPLACE.
THANK YOU.
THANK YOU VERY MUCH AND.
I HOPE YOU'LL HAVE A
CONVERSATION WITH YOUR FATHER IN
LAW AT SOME POINT TO.
ON HIS.
RISK ISSUES.
JOHN NORTHWARD HER REPRESENTING
THE INDEPENDENT INSURANCE AGENTS
AND BROKERS OF CALIFORNIA TO
ONCE WANT TO SEE OUT OF STATE
COMPANIES COMING IN AND
COMPETING FOR THE MARKET.
GOOD AFTERNOON JURORS AND
MEMBER.
IN THIS CASE I HATE YOU KNOW
SIGN REPRESENTING INDEPENDENT
TURNS AGENTS AND BROKERS OF
CALIFORNIA BUT ALSO THE SURPLUS
LINES ASSOCIATION IN CALIFORNIA.
WE HAVE WITNESSES HERE FROM BOTH
OF THOSE ASSOCIATIONS THAT ARE
GOING TO PROVIDE YOU SOME FIRST
HAND EXPERIENCE ON WHAT'S
HAPPENING IN THE HOMEOWNERS
INSURANCE MARKET.
SPECIALLY IN THESE OF FIRE
AREAS.
AS YOU HEARD THERE'S A LITTLE
OVER A HUNDRED HOMEOWNERS
INSURANCE COMPANIES IN THE
STATE.
.
AS IN MOST STATES THERE'S SIX OR
EIGHT THAT ARE THE BIG NAME
COMPANIES THAT HAVE A LOT OF
MARKET SHARE YOU KNOW WHO THEY
ARE COULD YOU SEE HIM ON. TV AND
ALL SPORTING EVENTS EVERY NIGHT
BECAUSE THERE'S SOME THAT.
.
FOR THE MOST PART THOSE ARE NOT
THE COMPANIES THAT.
HARM MEMBERS ARE PRESENT SURE
WE HAVE LIBERTY MUTUAL AND
NATIONWIDE AND MERCURY AND JOB
AND.
HARTFORD SOME OF THOSE THAT YOU
WILL RECOGNIZE BUT BY AND LARGE
IT'S THOSE OTHER NINETY
INSURANCE CARRIES YOU PROBABLY
NEVER HEARD OF. BUT THEY SERVE
ANY REALLY CRITICAL ROLE IN
CALIFORNIA.
.
IF FOR REPEAL OF AS INDICATED WE
HAVE AGENTS AND BROKERS IN
COMMUNITIES THROUGHOUT THE STATE
HARM. THEY DON'T ADVERTISE A LOT
THEY DON'T ADVERTISE A LOT
NATIONALLY THERE BUT THEY'RE
INVOLVED IN THEIR COMMUNITIES
AND THEY ARE THE MARKET BEYOND
THE. YOU KNOW SIX OR EIGHT
REALLY BIG COMPANIES SOMETIMES
WHAT YOU SEE IS PEOPLE GETTING
NON RENEWED BY BIGGER MARKET
SHARE PEOPLE THEN PANICKING
BECAUSE THEY DON'T KNOW ABOUT
THE. CINCINNATI INSURANCE
COMPANY OR THE OHIO CASUALTY OR
THE CI G. OR WHATEVER THE CASE
MAY BE BUT THAT'S ALL ROLL OUR
MEMBERS PLAY AND IS AN INSURANCE
BROKER YOUR LICENSE TO BE HELLA.
ACCESS ONE WAY OR THE OTHER THAT
ENTIRE MARKET IF YOU'RE NOT
APPOINTED BY A COMPANY AS A
BROKER YOU CAN GO WITH. ALBEIT
STILL APPLY TO THAT COMPANY
URGED US SENATE APPLICATION
TONIGHT COMPANY IF YOU CANNOT DO
IT THROUGH THOSE SOURCES YOU CAN
GO TO. AN INSURANCE WHOLESALER
AND WHOLESALER WHAT MIGHT HAVE
MARKETS TO OTHER PARTS THAT
OTHER GUY.
INSURERS THAT THAT AGENCY
DOESN'T OR.
TO GO THROUGH THE SURPLUS LINES
MARKET AND THEIR MEMBERS.
REQUIRED TO BE A MEMBER OF THE
SURPLUS LINES ASSOCIATION.
JUST A COUPLE QUICK COMMENTS
BEFORE I INTRODUCE OUR WITNESSES
AND THAT IS FROM AGENT BROKER
STANDPOINT WE WANT A VERY VIABLE
MARKET.
WE WANT AS MANY INSURERS HERE
HAS IT AS WE CAN BUT IT WOULD
TERMS IS REALLY NOT A. HELP FIX
SCIENCE AND IT'S IT'S NOT
UNUSUAL YOU LOOK IT OVER THE
YEARS WHERE. YOU KNOW COMPANIES
GET THERAPY KIND OF SPREAD OF
RISK OUT OF WHACK I MEAN.
THEY'RE REQUIRED TO HAVE A
CERTAIN SPREADABLE AT ROOM OF
RISK FEEL FOR SOLVENCY ISSUES
ALSO FOR THE REINSURERS AND MOST
THESE COMPANIES ARE.
SUBSTANTIALLY REINJURED ITEM
THAT GETS OUT OF WHACK SOMETIMES
JUST BECAUSE YOU DON'T HAVE BIG
LOSS EVENTS PAR AGENTS OR
BROKERS ARE PUSHING THOSE
ENVELOPES WE WANT TO SELL
INSURANCE. SO WHEN THAT HAPPENS
COMPANIES HAVE TO BALANCE OUT IS
AS YOU'VE HEARD SOME COMPANIES
MOVE OUT AND OTHERS MOVE IN AND
WE HOPE THAT'S WHAT'S HAPPENING
HOPEFULLY OUR WITNESSES CONVICT
EXPLAIN A LITTLE BIT ABOUT THAT.
WE ALSO HEARD.
A LITTLE BIT LAST WEEK I THINK
IT'S ONE OF THE BETTER HEARING.
IS JACKSON OF YOUR COMMITTEE
ABOUT INSURANCE RATES IN ABOUT I
THINK FROM A COMMISSIONER. A
PICKER ABOUT COMPANIES.
INSURANCE COMPANIES.
LEAVING THE MARKETPLACE RISK
ARE CHARGING YOU KNOW
SUBSTANTIAL RATES.
ARE MULTIPLES OF OF RATES. WE
DON'T BELIEVE THAT THAT'S
HAPPENING.
CALIFORNIA'S YOU'VE HEARD IT'S
A.
PAID A PRE APPROVAL RATE STATE
SO UNLESS COMPANIES HAVE BEEN IN
THE QUEUE GO
TO ANOTHER CARRIER AND I CARRIER
HAS A DIFFERENT RATE AT FIVE.
MIGHT WILL HAVE DIFFERENT
COVERAGES AND THAT TYPE OF THING
AND THAT'S WHAT REFLECTS THAT
THAT DIFFERENCE IN COVERAGE I
THINK THE LAST THING I WANT TO
SAY IS WE'VE GOT TO BE CAREFUL.
IN TERMS OF NOT CREATING AN
AVAILABILITY SITUATION IN
CALIFORNIA WHERE ONE WOULD KNOW
THE LIES HOPE EXIST EXAMPLE IS
THE COMMISSIONERS RECENTLY
NOTIFIED INSURERS.
THAT THEY SHOULD KEEP IN MIND
THE FACT THAT THE FEDERAL TAX
RATES OF CHANGE FROM THIRTY FIVE
PERCENT TO TWENTY ONE PERCENT
AND. HE CAN OR SHOULD COMEY IS
COMING IN FOR A RATE REDUCTION
HOLE AFTER BRING LOSSES LIKE
THAT THAT'S PRETTY DAUNTING ON
THE OTHERS ON THE OTHER HAND.
CALIFORNIA'S ONE OF ONLY TWO
STATES THAT BASICALLY SO THAT AN
INCREASE IN YOUR RE INSURANCE
RATES IS NOT A JUSTIFICATION TO
SUPPORT A RATE INCREASE.
NO THE RETURNS RATES ARE GOING
UP BY YOU KNOW TEN FIFTEEN
TWENTY PERCENT THE COMBINATION
OF THOSE THINGS COULD BE. HILL
LIKE THIRTY PERCENT SO DEAL THAT
MAY WELL CREATE THE KIND OF
AVAILABILITY SITUATION WE DON'T
WANT TO HAVE.
WITHOUT ALL AND I'D LIKE TO.
I INTRODUCED SOME ROB HERE WHO
IS NOW WITH THE GEORGE PETERSON
INSURANCE AGENCY IN SANTA ROSA.
GOOD ARTICULAR MUCH GOOD
AFTERNOON SIR.
MY NAME IS ROBBIE I'M WITH
GEORGE PETERSON INSURANCE.
IN SANTA ROSA.
WORRY I'D REGIONAL INDEPENDENT
BROKER WITH TWELVE OFFICES IN
NORTHERN CALIFORNIA.
.
IRONICALLY ALL VERY RURAL
PLACES.
SANTA ROSA'S THE MOST
METROPOLITAN.
AREA WERE IN WORD FOR BRAG
EUREKA. UKIAH READYING AUBURN
PLACES LIKE THAT WHERE. WHERE?
ARE ALL VERY VERY. BAD HAS IT
WILL BE A WILDFIRE HAS A PRONE
AREAS.
.
WE'VE GOT.
WE READ APPROXIMATELY FIFTY
MILLION DOLLARS IN IN BRITAIN
PREMIUM THROUGH OUR AGENCY.
WE'VE WE'VE GOT ABOUT TWELVE
THOUSAND FIVE HUNDRED.
PERSONAL LINES POLICY HOLDERS.
MOST OF THOSE HAVE HAVE HOMES.
.
AND THE YOU KNOW WHEN WE
EXPERIENCE THE. THE
UNIMAGINABLE.
ON OCTOBER NINTH.
WHEN I GOT TO THE OFFICE ABOUT
FOUR O'CLOCK IN THE MORNING.
.
ON ON THE NIGHTS.
WE HAD NO NO POWER THE POWER
CAME BACK AND WE HAD WE BARELY
LIVED LONG WITH WITH THEIR NET.
WITH ABOUT EIGHT PEOPLE OF OVER
EIGHTY FIVE EMPLOYEES WERE ABLE
TO MAKE IT INTO WORK EVERYBODY
ELSE WAS EVACUATED.
OR YOU KNOW JUST TO TRY TO
FIGURE OUT WHAT WHAT WAS GOING
ON WE HAD FOUR OF OUR EMPLOYEES
I LOSE HOMES.
AND.
HUNDREDS AND HUNDREDS OF OTHER.
FRIENDS IN AND CLIENTS THAT THAT
THAT.
.
SUFFERED TREMENDOUS LOSSES WELL
FOR THAT FOR THIS EVENT THAT
HAPPENED THAT THE TUBS FIRE WE
WE HAD A.
PROXIMATE IN NINETEEN HUNDRED
CLAIMS THROUGH OUR OFFICE.
.
AND TWO HUNDRED FIFTY FOUR TOTAL
LOSSES SO.
THE LAST NUMBER I HAD A. WEEK
TO TEN DAYS AGO UP MY OFFICE
ALONE IS SUFFERED A ABOUT FIVE
HUNDRED FIFTY MILLION DOLLARS
AND AND LOSSES FOR WITH OUR
CLIENTS SO.
.
WHAT WE HAVE SEEN?
SINCE THIS HAPPENED IS IT IS A
TREMENDOUS RESPONSE FROM THE
INSURANCE CARRIERS.
BAY HAVE DONE A PHENOMENAL JOB.
STEPPING UP TO THE PLATE FROM
FROM REALLY THAT FIRST DAY.
WE WE ACTUALLY HOUSED A. SHE
INSURANCE ADJUSTERS FROM EIGHT
DIFFERENT TURNS COMPANIES
DURING THAT FIRST WEEK WHILE
THEY WERE DODD DEPLOYING A CAT
TEAMS AND TRY TO GET THEM SET UP
PLACES SO.
SO WE HAD HUNDREDS AND HUNDREDS
OF.
INSURERS THROUGH OUR OFFICE.
TIM TO MEET THOSE ADJUSTERS.
FILED THEIR FIRST NOTICES OF OF
CLAIM AND GET ADVANCES ON THEIR
MONEY.
.
YEAH IF WE IF WE SAW SIX HUNDRED
PEOPLE THROUGH THAT FIRST WEEK.
MIGHT MY BEST GUESS WOULD BE
THREE HUNDRED AND WE'RE NOT EVEN
OUR CLIENTS THEY WERE JUST TOLD
TO COME THERE THERE'S AN
ADJUSTER GO THERE GET OME MONEY
AND AND. YOU GET SOME ITS MIGHT
KEEP THINGS GOING SO.
.
THE E. YOU KNOW THAT THAT THAT.
THE THE AT THE CONCEPT OF.
IN BIG THE NON RENEWAL NOTICES
THAT THAT'S COME UP YOU KNOW
QUITE OFTEN TODAY I'M. WE ARE
SEEING SOME OF THAT.
.
YOU KNOW I WAS TO TALKING TO
JOHN EARLIER WE HAD WE HAD ABOUT
A HUNDRED FIFTEEN NON RENEWALS
COME FROM ONE CARRIER.
STRICTLY BASED ON YOU KNOW FIRE
FIRE RISK.
.
THAT WAS ALMOST ALMOST FOUR
WEEKS AGO AS OF THIS MORNING
WERE WERE WERE CERTAIN THAT
WE'VE WE FOUND A HOME FOR ABOUT
A HUNDRED OF THOSE THOSE THOSE
OUR CLIENTS.
ANOTHER THING WE'VE BEEN
EXPERIENCING IS.
JUST RE UNDERWRITING WITH SOME
OF OUR.
SO OF OUR.
.
OUR CARRIERS ARE JUST WANTING TO
DO RE INSPECTIONS.
WHAT WHAT THAT INVOLVES FOR US
IS IS GOING OUT? INSPECTING THE
PROPERTY OTHER THERE COULD BE
SOME RECOMMENDATIONS OF INNOCENT
SOME MITIGATION THAT TYPE OF
STUFF BUT.
IT WILL WHAT WE HAVE SEEN SINCE
SINCE THE THE TUBS FIRES WE'VE
WE'VE WE'VE SEEN THREE NEW
CARRIERS THAT THAT OUR OUR
OFFICE IN PARTICULAR IS WORKING
WITH SO.
ALTHOUGH SOME CARRIERS ARE.
DIG UP TO MUCH CONCENTRATION OF
RISK AND.
.
I HAVE CONCERNS ABOUT THAT THAT
THE THAT THE INSURANCE IF THEY
ARE WRITING.
THERE ARE NEW CARRIERS INTO
CARES POINT THAT ARE COMING IN
AND.
AND WANTING TO TO WRITE THE
BUSINESS SO.
YOU KNOW. WHAT WHAT WE'VE
BEEN DOING AS A STRATEGY IS?
YOU KNOW.
.
YEAH WE'RE CERTAINLY HANDLING
THE CLAIMS THAT WE'VE GOT UMPS
VERY LABOR INTENSIVE AND
EMOTIONAL PROCESS FOR FOR NOT
ONLY OUR STAFF EQUIPMENT
ESPECIALLY FOR CLIENTS.
BUT YOU KNOW WE WE'VE ACTUALLY
DIEM GEARED UP OUR STAFF AND AND
WERE. YOU KNOW DOING A LOT A LOT
OF COVERAGE REVIEWS IN THOSE
CASES ITEM WORK OR INCREASING.
.
DWELLING VALUES.
IT A LOT OF THOSE CASES
CARRIERS ARE BALKING AT IT
PROVIDING MORE COVERAGE IN THOSE
SAME AREAS.
.
AND THEN.
YOU KNOW BECAUSE OF THE WAY
THAT WE STRUCTURED ON THE
POLICIES THAT WE WROTE AND AND
AND.
WE WROTE A LOT OF REALLY GOOD
GOOD POLICIES FOR PEOPLE AND AND
A LOT OF OUR CLIENTS THANKING US
FOR THE WORK THAT WE DID AND
SELLING OF SUCH A GOOD POLICY.
WE'VE WE'VE WE'VE ACTUALLY
SOMEHOW OF A VERY LARGE UPTICK
IN NEW POLICIES UMP FOR OUR
AGENCY TO SO TO I'VE I FEEL
LIKE.
SOME OF THE CARRIERS THAT WERE
WORKING WITH AS WELL AS OUR
AGENCY OR FILLING A GAP FOR SOME
OF THOSE.
SOME OF THOSE PEOPLE ARE
STRUGGLING OUT THERE.
.
BUT YEAH I IN IS IT AS FAR AS
THE UNDER INSURANCE GOES OUT
THAT'S ARM YOU. WON'T WE
CERTAINLY HERE A LOT OF THAT AND
IN SOME COUNTY SANTA ROSA.
FORTUNATELY FOR A FOR OUR
AGENCY.
WE HAVE NOT SEEN A LOT OF THAT
WE WE'VE GOT A MEAL LESS THAN A
HANDFUL OF SITUATIONS WHERE.
THERE'S THERE'S.
SOME TALK ABOUT UNDER INSURANCE
ARE THERE'S BEEN SOME CASES
WHERE. IT COULD BE CONTENTS WERE
SOMEBODY STARTED A HOME BUSINESS
DIDN'T TELL US ABOUT IT AND IF
IT YOU KNOW ACCUMULATED EIGHTY
THOUSAND HOURS INVENTORY THAT WE
NEED TO KNOW ABOUT AND AND THEY
ADMITTEDLY DIDN'T TELL US.
BOB BUT WE HAVE NOT SEEN A.
A TREMENDOUS AMOUNT OF UNDER
INSURANCE WITH THE NINETEEN
HUNDRED CLAIMS IT THAT WE'VE
HAD.
AND I THINK THAT THAT'S REALLY.
.
DUE TO THE PROCESS THAT WE WE DO
WHEN WE WHEN WE GO AND RIGHT
ACCOUNT WE WE DO RUN THE
REPLACEMENT COST ESTIMATORS OR
REFERENCE EARLIER. IN SOME CASES
I DON'T YOU KNOW BASED ON
TALKING WITH OUR CLIENTS.
WE MAY FEEL THAT THAT THOSE
REPLACEMENT COST US METERS AT
THE CARRIER DID ART ARE STILL
LOS THOSE WHO WILL BUMP BUMP
LIMITS AS WELL. AND AND MOST OF
THE CARES THAT WE WRITE WITH.
WILL OFFER AT LEAST A FIFTY
PERCENT EXTENDED REPLACEMENT
COST AND AND.
A HANDFUL CARES WE WRITE WILL
OFFER A HUNDRED PERCENT
ADDITIONAL EXTEND REPLACEMENT
COST SO.
HIM ARE OUR CLIENTS HAVE BEEN
VERY VERY WELL COVERED IN AND.
.
YOU KNOW.
I GUESS IN CLOSING YOU KNOW
WE'RE NOT WE'RE NOT PANICKED
WE'VE WE'VE. YOU KNOW WERE WERE
HIRING PEOPLE WERE.
LOOKING AT POTENTIALLY
ACQUIRING SOME SOME OTHER
AGENCIES BUT. NOW WE'RE SEEING
THIS AS AN OPPORTUNITY TO.
HIM.
KEEP DOING WHAT WE'RE DOING AND
AND HELP IN THE PEOPLE THAT DID.
FIT OTHER TRUSTED US TO PROTECT
EVERYTHING THEY'VE WORKED THEIR
WHOLE LIFE FOR.
THANK YOU I I WILL HAVE SOME
QUESTIONS AFTER WE HEAR FROM A
IS A TIMBER NET.
WITH THE. T. BURNS AND WILCOX
GOOD AFTERNOON SIR GOOD
AFTERNOON THANK YOU MY NAME'S
TIMBER AT AND I'M THE CORPORATE
VICE PRESIDENT AND. MANAGING
DIRECTOR OF BURNS AND WILCOXSON
WOODLAND HILLS I'M A LICENSE
SURPLUS LINES BROKERED A MEMBER
THE SURPLUS LINES ASSOCIATION
CALIFORNIA.
I'M HERE TODAY TO SPEAK ON THAT
ORGANIZATIONS BEHALF.
I'D LIKE TO THANK THE COMMITTEE
MEMBERS AND STAFF FOR THE
OPPORTUNITY TESTIFIED AT TODAY'S
MEETING.
THE SURPLUS LINES ASSOCIATION
SLI IS COMPOSED OF MORE THAN
FIVE THOUSAND THREE HUNDRED
LICENSEDBROKERS INSTEAD OF
CALIFORNIA.
WORKING ON BEHALF OF CALIFORNIA
CONSUMERS IN TWENTY SEVENTEEN
OUR MEMBERS PLACE TO VOTE NEARLY
SIX HUNDRED AND FIFTY THOUSAND
POLICIES IN THE STATE OF
CALIFORNIA TOTALING MORE THAN
SIX POINT FIVE BILLION DOLLARS
IN PROCESS PREMIUM.
SURPLUS LINE INSURANCE ENABLES
CALIFORNIA LEADERS TO DO THE
BUSINESS AND HELP THAT HELPS
ENSURE THE CONTINUED GROWTH. OF
THE CALIFORNIA OF CALIFORNIA'S
ROBUST ECONOMY.
THERE WHERE THE MARKET MAKERS OF
AUTONOMOUS VEHICLES FOR EXAMPLE
GROWERS OF LEGAL CANNABIS.
BUILDERS OF STADIUMS AND
COMPANIES SEEKING TO PROTECT
THEMSELVES FROM CYBER ATTACKS
AMONG MANY OTHER RISKS GO TO GET
INSURANCE.
WE ARE THE VITAL COMPONENT THE
WORLD'S SIXTH LARGEST ECONOMY.
THE CALIFORNIA DEPARTMENT
INSURANCE IN NINETEEN NINETY
FOUR POINT OF THE SLA HAS A
STATUTORY SURPLUS LINES ADVISORY
ORG ORGANIZATION.
OUR JOB AS A CD I APPOINTED
ADVISE YOU ORGANIZATION IS TO
ENSURE THAT ALL CALIFORNIA
LICENSE BROKERS REMAINING
COMPLIANCE.
HOW WITH ALL PERTINENT STATE
LAWS AND REGULATIONS AND THE SLA
DOES SO BY EXAMINING EVERY
SURPLUS LINES POLICY FILED IN
THE SAME?
THE SOA WORKS WITH ITS MEMBERS
LIKE MYSELF TO ENSURE A HEALTHY
FAIR AND COMPETITIVE SURPLUS
LINE MARKET IN THE STATE OF
CALIFORNIA. THAT PROTECTS
CONSUMERS AND HELPS MEET OUR
GOAL OF GETTING ALL CALIFORNIANS
THE COVERAGE THEY NEED.
SURPLUS LINES INSURANCE IS
TYPICALLY PLACED ONLY IN CASES
OF UNIQUE DISTRESSED HER HIGH
CAPACITY RISKS.
OR NEW RISKS FOR WHICH THERE IS
NO LOSS HISTORY IF HE ADMITTED
MARKET WILL WRITE A POLICY THE
SURPLUS LINES MARKET IS
FORBIDDEN FROM OFFERING THE SAME
POLICY. OR QUOTE.
SURPLUS LINE BROKERS CAN PLACE
POLICIES WITH CARRIERS WHO ARE
LICENSE OUTSIDE THE STATE OF
CALIFORNIA. IF AND ONLY IF THEY
CANNOT FIND ADMITTED CARRIER WHO
WILL ENSURE THE RISK IN THE
STATE.
BY LOST.
A BROKER MUST RECEIVE AT LEAST
THREE DECLINATIONS
IN THE ADMITTED MARKET BEFORE
SEEKING A PLACE OF SEEKING TO
PLACE A RISK IN THE SURPLUS
LINES MARKET.
BROKERS MUST LIST THESE
DECLINATIONS IN THE POLICIES
THEY FILE WITH OUR ASSOCIATION
OR BE REFERRED TO THE DEPARTMENT
FOR FAILURE TO COMPLY.
WELL EXCUSE ME OR BE REFERRED
TO THE DEPARTMENT OF INSURANCE
FOR FAILURE TO COMPLY WITH STATE
LAWS AND REGULATIONS.
BY PLACING SURPLUS LINE POLICIES
OUR BROKERS HELP CONSUMERS. WHO
COULD NOT OTHERWISE GET
INSURANCE TO PROTECT THEMSELVES
AGAINST SIGNIFICANT PROPERTY
LIABILITY LOSSES?
TYPICALLY OUR BROKERS PLACE
INSURANCE FOR COMMERCIAL
INTERESTS.
AND THE OVERWHELMING MAJORITY OF
POLICIES PLACE THE CALIFORNIA
SURPLUS LINE MARKET OUR
COMMERCIAL.
OR BUSINESS INSURANCE POLICIES.
WHILE IT IS TRUE THAT THE NUMBER
OF HOMEOWNER POLICIES ENSURE THE
SURPLUS LINES MARKET IN
CALIFORNIA ROUGHLY DOUBLED FROM
TWENTY THIRTEEN TO TWENTY
SEVENTEEN. ONLY A SMALL FRACTION
OF THE TOTAL NUMBER OF
HOMEOWNERS POLICIES PLACED AND
KEPT IN CALIFORNIA ARE IN
SURPLUS LINES.
THE NUMBER OF TOTAL HOMEOWNER
POLICIES IN TWENTY SEVENTEEN WAS
LESS THAN TWENTY FOUR THOUSAND.
TWENTY THREE NINE SEVENTY TO BE
EXACT REPRESENTED PROXY
APPROXIMATELY THREE POINT SEVEN
PERCENT OF ALL SURPLUS LINES
POLICIES WRITTEN IN THE STATE.
IN TWENTY SEVENTEEN.
THE TOTAL WRITTEN PREMIUM OF A
FOR SURPLUS LINES HOMEOWNERS
INSURANCE IN TWENTY SEVENTEEN
REPRESENTED UP APPROXIMATELY
SEVEN TENTHS OF ONE PERCENT. OF
ALL SURPLUS LINES PREMIUMS IN
THE STATE.
ACCORDING TO THE SLA STATISTICS
AND STATISTICS AVAILABLE FROM
THE CD I. A SURPLUS LINES
PREMIUMS PROCESS THAT YOUR
ACCOUNT FOR LESS THAN ONE HALF
OF ONE PERCENT. OF ALL
HOMEOWNERS ROB PREMIUMS WRITTEN
IN CALIFORNIA.
SO YOU CAN TELL FROM THE NUMBERS
IT'S VERY UNUSUAL FOR HOMEOWNERS
POLICIES TO GO INTO THE SURPLUS
LINES MARKETPLACE. HOWEVER IT IS
VITALLY IMPORTANT FOR THOSE
HOMEOWNERS TO HAVE A SURPLUS
LINES.
OPTION WHEN ADMITTED INSURERS
MAKE A BUSINESS DECISION TO
REDUCE THEIR LOS EXPOSURES IN
FIRE PRONE AREAS.
IF ADMITTED CARRY WILL NOT
INSURE THE REST CONSUMERS MUST
LOOK TO THE SURPLUS LINES
MARKETPLACE OR THE FAIR PLAN. OR
GO UNINSURED. AND GOING ON
INSURED AS WE KNOW IS AN OUTCOME
W. DESIRES.
WE BELIEVE THAT THE INCREASE
EVER FROM ROUGHLY ELEVEN
THOUSAND FIVE HUNDRED SURPLUS
LINE HOMEOWNER POLICIES PLACED
IN CALIFORNIA TWENTY THIRTEEN.
TO NEARLY TWENTY FOUR THOUSAND
TWENTY SEVENTEEN WAS DRIVEN IN
NO SMALL PART BY WILDFIRES.
WELL WE DO NOT SPECIFICALLY
HOMEOWNERS POLICIES ARE ISSUED.
WE HAVE SEEN A NUMBER OF FACTORS
THAT INDICATE CORRELATION
BETWEEN FIRES AND THE ISSUANCE
OF SURPLUS LINE HOMEOWNER
POLICIES.
THE MASSIVE FIRES IN RECENT
MONTHS AND IT CONTINUED TREND
TOWARD SURPLUS. HOMEOWNER
POLICIES BEING ISSUED IN FIRE
PRONE AREAS POINT IN THIS
DIRECTION.
IT IS THE LEGISLATIVE AND
REGULATORY INTENT OF STATE
CALIFORNIA ADMITTED INSURERS
MUST HAVE THE FIRST OPPORTUNITY
AT PROVIDING INSURANCE TO
CALIFORNIA CONSUMERS.
AND THIS IS RIGHT AND PROPER THE
SURPLUS LINE INDUSTRY'S ROLE IS
TO PROVIDE INSURANCE WHERE IS
OTHERWISE UNAVAILABLE.
WE WILL CONTINUE TO PROVIDE THIS
OPTION FOR CALIFORNIANS.
FIND THEMSELVES WITHOUT
INSURANCE PROVIDERS IN THE
ADMITTED MARKET.
I THANK YOU FOR THE OPPORTUNITY
TO TESTIFY HERE TODAY AND WILL
BE GLAD TO ANSWER ANY QUESTIONS
YOU MIGHT HAVE.
SELECT ALSO I INTRODUCED SYLVIA
ANALYSIS FROM OUR FIRM SYLVIA'S
THE DIRECTOR OF PERSONAL
INSURANCE FOR A BIRDS WILCOXON
SOUTHERN CALIFORNIA TWENTY TWO.
YEAR VETERAN OF. PERSONAL
INSURANCE BUT PRINCIPALLY
HOMEOWNERS INSURANCE THE NIGHT
OF NEEDED MARKET AND SHE AND I
BOTH BE HAVE TO ANSWER ANY
QUESTIONS.
SO.
.
WELL LET ME ASK YOU TO IS YOUR
ANYTHING YOU'D LIKE TO ADD TO.
VOTE TO THE REMARKS THAT HAVE
BEEN MADE TO DO HOMEOWNERS
PRIMARILY.
I DO I DO HOMEOWNERS AND COULD
YOU SHARE WITH US THEN OF YOUR
EXPERIENCE I I BELIEVE MISTER
BURNETT SAID THAT. ONLY ABOUT
POINT FIVE PERCENT OF THE
INSURANCE YOU RIGHT IS
HOMEOWNERS OF OBSERVERS LINES OF
SURPLUS MONEY TO.
OBSERVER GEMS AS THE CALIFORNIA
YEAH RIGHT.
CAKE COULD COULD YOU.
PERHAPS OFFICE WERE ABOUT FIFTY
FIFTY WE DO HAVE ADMITTED
MARKETS AND ON ADMITTED MA I SEE
THAT WE DO WRITE ABOUT HALF OF
IT ADMITTED AND HALF OF IT ON A
MINUTE SO FAR NOT BY ADMITTED
MARKETS. WILL NOT WRITE THE REST
THEN WE DO HAVE TO GO NOT
ADMITTED BUT WE ALWAYS TRY TO
FIND A PLACEMENT AND UNDER WHAT
CIRCUMSTANCES DOES THE.
THE DO YOU ADMITTED MARKET
FOLKS GENERALLY NOT ACCEPT THE
RISK THAT REQUIRES THAT YOU GO
TO THE.
TO THE SURPLUS MARKET.
THE MAIN RISK IS THE EITHER THE
WILDFIRE LOCATION.
OR CHARACTERISTICS OF THE HOME
A LOT OF TIMES WE'LL SEE HOMES
THAT HAVEN'T BEEN UPDATED OR
SEVERAL LOSSES USUALLY WATER
LOSSES ARE ONES THAT. MAKE YOU
GO INTO A NON ADMITTED MARKET.
THAT'S A THAT'S FROM LOOKING FOR
WHAT WOULD MAKE A HOME GO INTO
THE NON.
SAYS COULD.
UPDATES OF A HOME A LOT OF
TIMES IT WOULD SHAKE ROOF WILL
NOT ALLOW IT TO GO TO BE
ADMITTED MARKET.
AND THE LOCATION.
PATRICIA K. ARE SO I HAVE I DO
HAVE A FEW QUESTIONS AND I I AM
SERVICE MISTER A NOR WOULD WHICH
TO RESPOND TO THE SUGGESTION.
THAT WE SHOULD OPEN UP THE STATE
TO SOME OF THESE.
OTHER NON STATE BASED.
A MARKET SO OR I SHOULD SAY
INSURANCE COMPANIES IN ORDER TO
INCREASE THE COMPETITION I GUESS
IS THE SUGGESTION. WELL I THINK
THAT THERE'S A VERY GOOD BALANCE
RIGHT NOW AND.
IT WOULD SHOULD BUT IT INSURANCE
COMPANIES ARE BY AND LARGE
COMFORTABLE WITH NOT ADMITTED%
INSURANCE COMPANIES BECAUSE
THERE IS KIND OF A LINE THERE
ARE THAT.
THERE'S SEVERAL LINES OF
INSURANCE THAT EVERYBODY AGREES
THAT.
THERE'S NO ADMITTED COVERAGE
FOR SO THE COMMISSIONER ALLOWS.
AGENTS AND BROKERS TO PLACE
BUSINESS IN THOSE MARKETS
WITHOUT THE DECLINATIONS ON THE
OTHER LINES THEY HAVE TO GET
DECLINATIONS AS INDICATED.
THE SURPLUS LINES MARKET IS A
VERY SMALL ZEAL SEGMENT OF THE
OVERALL MARKET AS. YOU KNOW TIM
TESTIFIED TO SO I AM REALLY
THERE'S A GREAT BALANCE THERE
NOW AND I THINK THAT. THE
SURPLUS LINES MARKET MARKET
PRIMARILY SERVES THESE AND IT
HILL SPECIALTY RIPS THINGS THAT
HE THERE ARE AROUND. HIM MULTI
SIT MULTI STATE RISKS I'M. YOU
KNOW LOVE YA HIGH HIGH RISK
ESPECIALLY RISKS THAT THE
ADMITTED MARKET HIM DOESN'T ONE
RIGHT SO IT WE WE THINK THE
BOUNCE IS VERY GOOD AND THEY ARE
NOW IN THE PROTECTIONS ARE
THERE.
I THINK ONE OF THE WITNESSES
INDICATED THAT THEY WERE
CONCERNED ABOUT THE NOT ADMITTED
MARKET BECAUSE THOSE COMPANIES
DON'T HAVE A STATE GUARANTEE
ASSOCIATION. ARE ACTUALLY VIEW
LOOK AT THE RECORDS ARE NOT
ADMITTED MARKET.
TRADITIONALLY IS BEEN STRONGER
NO YOU KNOW IT IS ABOUT HERE IS
ABOUT.
.
DESIRABILITY I MEAN ONE OF THE
THINGS WE TALKED ABOUT HERE ONE
OF THE WITNESSES TALKED ABOUT
WAS THE COULD STICKS AND HAVING
DATA THIS AND THAT. ALTERNATE
FOR EASTER BASED INSURANCE RATES
ARE BASED ON DATA. IF HER
SMALLER COMPANY YOU DON'T HAVE
ENOUGH DATA OF YOUR OWN YOU GO
TO IDEA SO INSURANCE SERVICES
OFFICE AND THEY CAN GET YOU
INFORMATION CALIFORNIA SPECIFIC.
INFORMATION AND THAT'S HOW YOU
DEVELOP YOUR RATES.
YOU CAN'T.
IN THAT MARKETPLACE COME UP WITH
A SUGGESTION FOR A DISCOUNT OR
AND AN INCREASE OF SOMETHING
THAT'S NOT ACTUAR WE VIABLE THE
YOU CAN'T PROVE TO THE
COMMISSIONER HAS A. HAS AN
EFFECT ON YOUR RATES SO YOU KNOW
SOME OF THE THINGS WE'RE TALKING
ABOUT TODAY HAVING HIM
REPOSITIONING.
NO FIRE FACILITA FACILITIES.
NO HAVING A MITIGATION OF
AROUND YOUR HOME OR YOU KNOW
FOREST. LAND MANAGEMENT THINGS
ALL ALL THAT WELL.
UNTIL THE THOSE ARE PROVEN TO
HAPPEN UNTIL THERE'S SOME
HISTORY THAT THEY'VE ACTUALLY
SAVED.
STRUCTURES MONEY.
HIM HAVE MADE THE EVENTS.
WILL. FEEL LESS CATASTROPHE
THAN THEY WOULD THEY WOULD BE
HE.
CAN'T TECHNICALLY PUT THOSE AND
YOUR RATES SO YOU KNOW IT IT.
IT IS A.
YOU KNOW AS WELL SWINGS OR IS A
CATCH TWENTY TWO SOMETIMES.
WELL I WILL TELL YOU IT'S A
THOMAS FIERY OBSERVED IT TO. THE
FIRE DEPARTMENTS WERE PRE
POSITIONED IN SAINT.
HUNDREDS IF NOT THOUSANDS OF
HOMES.
THAT WE'RE IN THE MULTIMILLION
DOLLAR CATEGORY AND IN FACT
PROBABLY ARGUABLY SAVED A GOOD
PORTION OF THE CITY SANTA
BARBARA THE ESTIMATED. HAD THEY
NOT PRE POSITIONED HAD THE FIRE
DONE WHAT IT.
COULD VERY LIKELY DONE THE. COST
WOULD HAVE BEEN ABOUT FORTY
BILLION DOLLARS SO BUT NO DOUBT
PERHAPS THAT'S SOMETHING THAT
CAN BE FACTORED IN PREVENTION IS
ALWAYS WORTH A POUND OF CURE. I
WOULD MENTION A MY UNDERSTANDING
IS THAT THE REDUCTION IN THE
NUMBER OF COMPANIES IN
CALIFORNIA IS AS MUCH.
IF NOT MORE DUE TO THE
CONSOLIDATION OF THE INDUSTRY.
SO I'M I'M LOOKING FOR WAYS AND
WE KEEP HEARING ABOUT HOW
REGULATION IS DESTROYING THE
MARKET BUT THE MARKET SEEMS
RATHER ROTH BUSTED IN THE
SUGGESTION. PERHAPS AT YOU LET
OTHER COMPANIES IN THAT AREN'T
NECESSARILY REGULATED THAT
DOESN'T SOUND LIKE THAT COULD
AND ID EITHER SO I'M I'M TRYING
TO GET A SENSE OF.
JUST A HOW EXACTING ACCURATE
THESE THESE CONCERNS ARE BUT.
CLEARLY WE ARE SEEING SOME
COMPANIES GO OUT I THINK WE
SHOULD JERRY MENTIONED.
THAT YOU WERE OF THAT THERE
WERE A HUNDRED FIFTEEN NON
RENEWALS BUT THEY'RE THROWN
THREE NEW CARRIERS WHO HAVE
JOINED CAN YOU EXPLAIN IS THERE
ANY EXPLANATION FOR THAT ARE
THESE GLUTTONS FOR PUNISHMENT OR
DO THEY STILL FEEL THAT THEY
CAN.
THEY CAN MAKE MONEY.
HELD US UP WRITING INSURANCE IN
THAT PARTICULAR INSTANCE.
THE NON RENEWALS WERE.
WERE.
DUE TOA OVER CONCENTRATION BY
THAT PARTICULAR CARRIER IN A
CERTAIN.
IN A CERTAIN FIRE PRONE AREAS
SO.
EVEN YOU KNOW WHAT YOU'VE GOT
IS IS NEW CARRIERS COMING IN THE
MARKETPLACE AND THEY'LL TAKE
SOME OF THAT.
BUT THEY'RE ALSO GONNA GO OUT
TO THE.
THAT THE LAST FIRE PRONE AREAS
IT AND AND TAKE THEIR SURE THAT
BUSINESS AS WELL AND COMPETE FOR
THAT SO.
I THINK.
DIEM.
IT IT BECAUSE THEY'RE NEW TO THE
AREA BELT THERE WILLING TO TAKE
SOME AT HIGHER RISKS.
.
BUSINESS TO US TO GET INTO THE
MARKETPLACE.
PART THANK YOU OF ITS ANY
QUESTION SENATOR GLAZERS. THE
COUPLE BRIEF QUESTIONS THAT MR
HERE I DIDN'T.
I HEAR YOUR TESTIMONIAL LOW WAS
A SHARED WITH ME AND. THAT I WAS
HUNDRED AND FOURTEEN OR HUNDRED
AND FIFTEENS THAT NOT RENEWED.
BUT AND YOU FOUND PLACEMENTS FOR
HUNDRED WHAT HAPPEN TO THE OTHER
FOURTEEN OR FIFTEEN.
WE'RE STILL WE'RE STILL WORKING
ON THOSE I MEAN THAT THAT THAT
JUST HAPPENED WEEK WE GOT THAT
NOTICE.
.
THREE FOUR WEEKS AGO SO THAT
WAS FROM A SINGLE COMPANY ONE
SINGLE COMPANY AND WOULD YOU
IDENTIFY THAT COMPANY.
GRANGE INSURANCE AGAIN RANGE IN
FRENCH OKAY.
ALL RIGHT IN WITH YOUR WE'VE
WE'VE GOT YOU KNOW HUNDREDS OF.
OTHER OTHER RE UNDERWRITING.
NOTICES TO WORK WHERE COMPANIES
ARE GONNA COME OUT WE INSPECT.
THEY MAY THEY MAY.
WANT THE HOMEOWNERS TO DO
CERTAIN THINGS TO STAY ON THOSE
RISKS BUT.
YOU WERE ACTIVELY.
PURSUING OTHER MARKETS FOR
THOSE RISKS AS WELL OKAY GREAT
AND THANK YOU FOR YOUR GOOD WORK
IN HELPING THOSE HOMEOWNERS OUT.
I MISTER CLACKLINE CLINICALLY.
I JUST HAVE TO ASK YOU KNOW ME
CURIOUS MINDS WANT TO KNOW WHAT.
YOUR FATHER IN LAW DID GET
INSURANCE AND FROM WHO CAN COME
AYE SHE DOESN'T CONSULT WITH ME
AND IT'S INSURANCE NEEDS BUT HE
DOES HAVE INSURANCE CURRENTLY.
I WAS OUT IN THE SURPLUS MARKET
BY ANY CHANCE OF YOU KNOW I
DON'T KNOW HIS HIS HOUSE.
WAS WITH BRAND PUBLIC HUNDRED
FEET OF FOR THE FIRE CAME DOWN
THROUGH CALISTOGA CON YOU CAN
FALL THAT WAS MOVING SO FAST
DEFAULT THE WATER LINES CREEK
LINES RATHER GOING UP THE RIDGES
WHERE HIS HOUSE WAS. A BUT I'M
PRETTY SURE I COULD SET HIS
HOUSE ON FIRE WITH A CIGARETTE
IT'S.
RIGHT CLICK COMBUSTIBLE EDISON.
THE OTHER EAR SO ENCOURAGING.
I MUST HAVE A GREAT GREAT
THANKSGIVING DINNER.
BUT BUT BUT DID YOU DON'T KNOW
IF HE GOT ON THE SURPLUS LINER
ARE NOW I DO NOT KNOW OF ANY
SEEK TO THAT.
BUT TODAY I SPEAK UP.
WHAT THIS MAN WHETHER THAT
HOUSES IN THE SURPLUS LINES?
YEAH SURE.
IT IN IN ALL LIKELIHOOD IS NOT.
NINE. YEAH IT'S IT BECAUSE I
REALLY WANNA MAKE THE POINT
ABOUT THE THE THE THE HIGH
DEGREE OF UNDERWRITING ECHOES
AND A SURPLUS LINES AND I GOT
IT.
RIGHT COULD I APPRECIATE THE
CLARIFICATION THAT IT MEANS IT I
SUGGEST SOMETHING AND I JUST WAS
CURIOUS.
THANK YOU MADAM CHAIR AT THIS
WAS MY FIRST THAT INSURANCE
COMMITTEE MEETING AND IT WAS.
QUITE EXCITING.
YEAH. I KEY PA WITH THINK THAT
LOUIS HUPP.
GIVING THE SENSE MADAM CHAIR ON
HOMEOWNERS INSURANCE MARKET.
THAT THERE'S NOTHING.
SEE HERE MOVE ON.
UM EVERYTHING'S. AND I'M JUST
WONDERING WHAT SHOULD I BE
WORRIED ABOUT AS A LEGISLATOR
WHAT IS THE TAKE AWAY AND WHAT
WOULD YOU RECOMMEND.
QUESTION.
LIKELY TO BE FOR FUN I'M
SPEAKING FOR THE INSURANCE
INDUSTRY DIVERT TALK ABOUT
INSURANCE ISSUES BUT WHEN I LOOK
AT THIS PERSONALLY I THINK WE
NEED TO BE FOCUSING ON THE
MANAGEMENT OF OUR FORESTS.
BUT IN THE ITEM I UNDERSTAND
THERE'S BEEN ABOUT SEVENTY OR
EIGHTY BILLS THAT HAVE BEEN
INTRODUCED DEALING WITH FIRE.
THREE OF SEVENTEEN DEALING WITH
INSURANCE BUT OBVIOUSLY THERE'S
A. FOLKS ARE LOOKING A LOT MORE
pANYONE ELSE.
AND JUST BECAUSE EARLIER EARLIER
MY CONCERN IS THAT WE DON'T
CREATE AVAILABILITY SITUATION
WHERE ONE MAYBE DOESN'T EXIST
AND. YOU KNOW BY ESSENTIALLY
INTO THE IMPOSING MANDATES ON
JURORS THAT THERE ARE TIME
RESPONDING TO.
HERE WE TALKED COULD TALK A
LITTLE BIT ABOUT THE. THE ISSUE
OF REINSURANCE MEAN OFTENTIMES
THE SMALL COMPANIES.
I MEAN THERE COULDN'T HAVE
THEIR DIRECTED IN PART BY THEIR
YOU KNOW WHETHER OR NOT THEY CAN
OBTAIN REINSURANCE I HAD ONE OF
OTHER CLIENTS WHO TALKED ME
ABOUT. AFTER THE TWO THOUSAND
THREE FIRES THAT THEIR IMAGE
THEIR REINSURER ASKING DAY
CANCEL. THEY'LL SEVERAL THOUSAND
POLICIES ARE NOT RENEW SEVERAL
THOUSAND POLICY BECAUSE THE
REINSURER THOUGHT THEY WERE. YOU
KNOW OVER EXPOSED SO THEY DID
THAT THOSE POLICIES WERE
CERTAINLY TAKEN BY SOMEBODY ELSE
BUTTERMILK THAT'S THAT'S A
FACTOR IN ALL THIS OR NOT
TALKING ABOUT. REINSURANCE IS A
WORLDWIDE PHENOMENON HEALED IT'S
CRITICAL FOR COMPANIES TO HAVE
ACCESS TO THAT AND AS I SAID
EARLIER WE DON'T HAVE.
GET WE DON'T RECOGNIZE THAT IN
THE RATE PROCESS IN CALIFORNIA
HAS A REASON TO SUPPORT A RATE
INCREASE OF RETURNS COSTS GO UP.
YOU KNOW ENDED SAME TIME
COMPANIES ARE ASKED TO. IN A
REDUCED RATES BECAUSE OF FEDERAL
TAX LAWS YOU IN THE STATE.
YOU THINK YOU MANAGER.
BESIDES LIKE TO.
I APPRECIATE YOUR OBSERVATION
ABOUT MANAGING OUR FORESTS I
HAVE A BILL ON THAT THIS YEAR.
HAD.
I ALSO THINK WE HAVE TO ADDRESS
CLIMATE CHANGE BECAUSE. I THINK
THERE'S VERY LITTLE DOUBT THAT
CLIMATE CHANGE IS CAUSING A LOT
OF THIS THESE WEATHER CONDITIONS
THAT ARE CREATING THE PROBLEM
SO.
I THINK ON ALL SIDES FROM ALL
DIFFERENT POLITICAL PERSPECTIVES
WE DO HAVE A LOT OF WORK TO DO.
I DO HAVE ONE QUESTION THOUGH
I'M I'M STILL KIND OF PUZZLED.
NO THE.
.
THE NORTHRIDGE EARTHQUAKE
DECIMATED INSURANCE INDUSTRY AND
I REMEMBER QUITE VIVIDLY AND.
DRIVING DOWN VENTURA BOULEVARD
ACTUALLY.
IN THE VALLEY YOU KNOW THE
COMMERCIAL BUILDINGS IN
PARTICULAR AND THE RESIDENCES
OF.
PURCHASE GET OFF THEIR
FOUNDATIONS AND HAD TO BE
REBUILT AND WHAT HAVE YOU SO.
HOW DOES THE THE NEW RISK OF
THESE?
NEARLY MEGA FIRES DIFFER FROM
THE RISK THAT WE SAW AFTER THE
NORTHRIDGE EARTHQUAKE WHEN THE
INSURANCE INDUSTRY WAS VIRTUALLY
DECIMATED HERE WE'RE HAVING
THESE MAJOR EVENTS AND YET. THE
INDUSTRY IS SEEMS TO BE QUITE
ROBUST WELL HOW DO YOU EXPLAIN
THAT. AYE AYE I'LL TAKE THAT I I
THINK IN SOME RESPECTS THE
INSURANCE INDUSTRY LEARNED FROM
NORTHRIDGE A THEY WERE OVER
EXPOSED AND PART OF THAT WAS
BECAUSE THEY WERE MANDATE.
STATUTORY MANDATES THAT THEY
MUST OFFER EARTHQUAKE INSURANCE
SO THAT. PREVENTED THEM FROM
HAVING THE ABILITY TO REALLY
MANAGE THEIR RISK
AND WITH THAT AS A RESULT YOU
DID WIND UP WITH OVER EXPOSURE.
HERE.
THERE ARE NO MANDATES.
I THINK IF YOU HAD MANDATE
SEATS YOU'D COULD SEE SOMETHING
VERY.
MUCH LIKE WHAT HAPPENED AFTER
NORTHRIDGE INSURERS THERE'S I
THINK BECAUSE THE REASON THOSE
AVAILABILITY RIGHT NOW IS
BECAUSE INSURANCE ARE ABLE TO
LOOK AT THEIR EXPOSURE THEY ARE
ABLE TO MANAGE THEIR RISK. AND
OTHER INSURERS WITH THAT CAN
WRITE IN THIS AREAS ARE COMING
IN.
ANY OTHER THOUGHTS YOU WANTED TO
GATHERS NUMBER THREE IMPORTANT
ELEMENT THAT'S REALLY DRIVING
THE. INTENSE COMPETITION
AVAILABILITY FOR INSURANCE NOT
ONLY CALIFORNIA GLOBALLY AND
THAT'S A CAPITAL CAPACITY.
THERE'S DIMINISH NOT CAPITAL
GLOBAL CAPACITY AVAILABLE IN THE
WORLD THAT'S FUNNY NEEDS A PLACE
TO GO. AND IT'S IT FINDS ITS WAY
TO THE INSURANCE MARKETPLACE.
WHICH CREATES A COMMENCEMENT OF
A COMPETITION.
FOR RETURN ON CAPITAL.
AND SO IT'S RATE IT IT'S VERY
MUCH A CAPITAL DRIVEN.
.
THE OPPORTUNITY.
COURIER TODAY COMPARED TO
TWENTY.
NINETEEN NINETY FOUR.
ALRIGHT WELL THAT.
I THINK THIS IS GOOD NEWS TIME
GOV APPRECIATE YOUR TESTIMONY
AND ALL OF YOU AND.
ANALYSTS ARE ANY FURTHER
QUESTIONS LET'S GO TO PUBLIC
COMMENT BEFORE WE CONCLUDE AND
THANK YOU ALL FOR BEING HERE.
THERE ANY OF ANY PUBLIC.
THIRTY ONE ELECTED
BOARD TEN
SURE CUP
SENATE INTERESTS AND ENGAGEMENT
IN THIS ISSUE AND SO MANY OTHERS
AND ARE IN REGARD TO. SAFETY OF
OUR COMMUNITY AND CERTAINLY
THANKING THE STAFF OF OUR BOTH
OUR COMMITTEES FOR OTHER GOOD
WORK IN PREPARING.
ARE ARE.
.
FOR INFORMATION ON THIS IN THE
WONDERFUL WITNESSES BUT HERE'S
UP WHEN A SPARK. A LITTLE LAUGH.
I THOUGHT ON.
IN THIS WAY. THAT.
WE TALK ABOUT OUR FORCE
MANAGEMENT AND I CERTAINLY AGREE
WITH THAT IN SO MANY WAYS.
I AM ANY TALK ABOUT THAT TENS OF
MILLIONS OF FOR. THE TREES OUT
THERE WE CERTAINLY HAVE SOME
WORK TO DO.
BUT I WANT TO TALK ABOUT A SELF
INFLICTED WOUND THAT I SEE IN
OUR COMMUNITIES.
AND THAT'S A REVOLVING AROUND
URBAN FORESTS.
.
WE LOVE OUR TREES WE LOVE THE
SHADE WE KNOW THAT THAT CREATES
A GREAT QUALITY OF LIFE AND MANY
OF OUR COMMUNITIES BUT. YOU CAN
GO LOOK IN THE OAKLAND HILLS
TODAY.
AND SEE A LOT OF EUCALYPTUS
TREES ALL OVER THE PLACE.
AND YOU CAN SEE THE FIGHTS ABOUT
WHETHER A TREE EUCALYPTUS TREES
SAVED OR REMOVED.
AND NOW PARTS OF MY DISTRICT IT
YOU HAVE TO PAY BIG AMOUNTS OF
MONEY TO REMOVE A TREE.
IF YOU WANT TO REMOVE A TREE
BECAUSE THESE OUT ONE OF THESE
COMMUNITIES UNDERSTAND THE
QUALITY OF LIFE COMES FROM
HAVING THIS WONDERFUL TREE
CANOPIES AND. I APPRECIATE THAT
TOO AND I LOVE IT IN MY AREA.
BUT WE HAVE TO GO IN AND RE
CHECK THAT AND READ RETEST THAT
THINKING. I'D GIVEN THIS.
THIS ISSUE OF OF THESE OUT OF
CONTROL FIRES.
WERE THESE TREES ONLY MAKE IT
WORSE AND CERTAINLY IN SOUTHERN
CALIFORNIA YOU CAN SEE PLACES.
ALONG THE COAST AND EVEN PLACES
THAT. HAVE BEEN AFFECTED BY FIRE
WILL FIGHT YOU TOOTH AND NAIL
ABOUT REMOVING.
TREE SO IT IS I WANT TO SPARK A
LITTLE THOUGHT ON. ON THAT ISSUE
BECAUSE. WE HAVE TO LOOK FOR
RISK REDUCTION EVERYWHERE
INCLUDING EVEN IN THE
COMMUNITIES AND EVEN IF IT
AFFECTS THE QUALITY OF LIFE THAT
WE SO MUCH TREASURE IN OUR OWN.
HOME TOWNS.
FURTHERMORE LA LOOKING SAKE I
WOULD JUST LIKE TO RESPOND
BRIEFLY TO THAT YOU KNOW WITH
CLIMATE CHANGE WITH THE FACT
WE'RE SPEWING CARBON INTO OUR
AIR THE NOTION THAT WE SHOULD
HAVE TO WORRY ABOUT IT WHETHER
OR NOT WE HAVE A TREE IN OUR
BACKYARD. THE IS VERY SAD
STATEMENT ABOUT. WHERE WE ARE
AND WHERE WE'VE COME BOTH
POLITICALLY AND ENVIRONMENTALLY
I HOPE THAT ISN'T THE CASE
BECAUSE FOR?
MANY OF US OF THE QUALITY OF
LIFE.
REALLY IS ASSOCIATED WITH THE
THE NATURAL BEAUTY AND AND. YOU
KNOW TREES ALSO WERE A GREAT
SOURCE OF COMFORT SHADE.
GREENHOUSE GAS OF REDUCTION.
IT'S MY HOPE THAT WE CN TAKE
VERY SERIOUSLY. OF WHAT WE ARE
DOING THAT'S CAUSING THE
SIGNIFICANT CLIMATE CHANGE THAT
WE ARE EXPERIENCING AND. I'D DO
WHAT WE CAN TO TO ADDRESS IT IN
A PROACTIVE WAY RATHER THAN BE.
REACTIVE TO IT.
THAT BEING SAID WE DO HAVE.
IT'S VERY IMPORTANT THAT WE
CONTINUE TO MAKE CALIFORNIA KEEP
CALIFORNIA THE. MAGNIFICENT A
BEAUTIFUL PLACE AND IT IS AND I
DO APPRECIATE THE TIME AND THE
EFFORT THAT PEOPLE SPEND HERE
TODAY TO JOIN US ARE. BY TYING
DO APPRECIATED THE STATEMENTS IN
THE INSURANCE INDUSTRY.
FEELING FAIRLY CONFIDENT ABOUT
ITS FUTURE.
AND IT'S MY HOPE THAT WE CAN
AGAIN BALANCE. OF THE NEEDS OF
OUR OUR CONSUMERS WHICH WAS
MENTIONED AT THE BEGINNING. OF
WITH THE HOW WE MAINTAIN A
ROBUST MARKETPLACE SO THAT WE
CAN PROTECT CONSUMERS.
I CAN'T THINK OF ANYONE IS GOING
TO BUY A HOUSE TODAY. UNLESS
THEY PAY CASH THAT ISN'T GOING
TO BE REQUIRED TO MAINTAIN
INSURANCE IN ORDER TO KEEP THAT
HOUSE SO UNLESS WE WANT PEOPLE
THAT TO RECREATE HOOVER VILLE.
OF BILLS FROM THE TWENTIES.
WE'VE GOT TO WORK TOGETHER AND
I HOPE WE FIND THE BEST WAYS TO
DO IT IN THE. MOST MEANINGFUL
RESOLUTION FOR THE PEOPLE OF
THIS GREAT STATES WITH THAT.
WE'LL RETURN CHAIR CLICK HERE