So who wrote their reinsurance? It’s nice that they have it, I’m sure the reinsurance provider can pay pretty easily.
All of the private insurance companies who still offer policies in California are required to underwrite the reinsurance liabilities. That was a part of the law that created the California FAIR Plan.
It’s nice that they have it, I’m sure the reinsurance provider can pay pretty easily.
There is no sound actuarial basis on which these claims have been funded. "There isn't enough money collected to pay them".
Some of the private insurance companies will be insolvent from the resulting claims and their California divisions will go bankrupt. Others will simply raise their rates for policy holders outside of California in order to make up the losses from the reinsurance claims.
This mess will get tied up in courts for many years. The lawyers will get more from it than the homeowners.