Re:Is the World Becoming Uninsurable?
by PaulDavisThe1st on Friday January 17, 2025 @12:30AM
(#42734392)
Yep. These are terms to operate as an insurance company in the state. If you don't want to do that, the rules have no bearing on you.
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Which effectively means that anybody in a less risky area of California is just subsidizing those who live in the risky areas. Premia across the board will increase as a result.
Typical California redistribution...but this is from the bottom to the top.
Re:Is the World Becoming Uninsurable?
by PaulDavisThe1st on Saturday January 18, 2025 @09:57AM
(#42748816)
> Which effectively means that anybody in a less risky area of California is just subsidizing those who live in the risky areas.
Do you not understand that this is precisely how insurance works?
Re:Is the World Becoming Uninsurable?
by qeternity on Saturday January 18, 2025 @01:34PM
(#42750305)
No. That’s not subsidization.
Of course insurance is about pooling risk. But subsidizing implies you’re doing it below market rates.
If I pay my market rate but still -EV insurance premium, I’m not subsidizing anyone. I’m just happy to pay for the convexity insurance provided.
If I have to pay 20% more than I otherwise would, because the insurance company can’t charge someone else 20% more, that is actual subsidization.
A subsidy distorts natural market forces. This is what I am talking about.
Don’t be so quick to be a dick.