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No, Climate Change Is Not Causing California’s “Insurance Crisis”
Von Mises ^ | 15 Jan. 2025 | Conner O’Keefe

Posted on 01/16/2025 10:11:47 AM PST by rey

Last week, parts of Los Angeles, California, were devastated by a series of especially destructive wildfires. While fires are common in the southern California region, a couple of factors came together to turn last week’s flare-ups into major conflagrations.

First, LA experienced a lot of rainfall in 2022 and 2023. The wet conditions spurred the growth of a lot of brush and grasses on the hills surrounding LA’s metropolitan area. 2024 brought an exceptionally hot summer and almost no rain during what was supposed to be the wet season, which dried out the now abundant vegetation.

The various state and local government authorities that own this wilderness obviously did not clear this dried-out brush with effective methods like tree thinning and controlled burns, leaving the surrounding urban areas vulnerable.

The second factor was the wind. The region frequently experiences strong, warm winds that originate high in the southern Nevada desert and travel down across California into the Pacific Ocean, gaining speed and intensity as they squeeze through the mountains and canyons surrounding Los Angeles. These winds are common and, therefore, predictable enough to have a name: the Santa Anas.

(Excerpt) Read more at mises.org ...


TOPICS: Business/Economy; News/Current Events; US: California
KEYWORDS: california; insurance; r; wildfires
A lengthy piece, it outlines what is really happening.

There were a handful of insurers who filed bankruptcy after the fire in Paradise, largely a result of untenable regulations.

The state insurance commissioner screws insurers at every turn.

The state’s insurance of last resort, FAIR, had to drastically raise rates. As they are insuring properties that insurers decline to insure, they have insane liabilities. It is extremely likely the LA fires are going to bankrupt FAIR. As it is a state run insurance, it is probable the state will use tax dollars to bailout their own insurance.

1 posted on 01/16/2025 10:11:47 AM PST by rey
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To: rey

It sure is convenient to blame everything on global warming, though. That way the stupid voters don’t know anything, and everyone is happy. Everyone that matters, anyway.


2 posted on 01/16/2025 10:27:29 AM PST by Telepathic Intruder
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To: Telepathic Intruder
It sure is convenient to blame everything on global warming, though. That way the stupid voters don’t know anything, and everyone is happy. Everyone that matters, anyway.

You got to give them credit for sticking to the scam no matter what.

3 posted on 01/16/2025 10:31:32 AM PST by DouglasKC
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To: rey

It’s the Gov Nuisance and his insane government


4 posted on 01/16/2025 10:35:18 AM PST by butlerweave
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To: rey

The eons old desert climate in LA is merely reverting to the mean


5 posted on 01/16/2025 10:39:36 AM PST by bert ( (KE. NP. +12) Where is ZORRO when California so desperately needs him?)
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To: bert

Chinatown (1974) , they throw water away just like in the movie ,LOL


6 posted on 01/16/2025 10:43:35 AM PST by butlerweave
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To: DouglasKC

They only stick to the scam as long as enough Prols believe it.


7 posted on 01/16/2025 10:44:58 AM PST by Intar
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To: rey

Yes, climate change is causing fires and insurance issues in California. All the idiocy fake crisis policies are putting everything in danger.


8 posted on 01/16/2025 10:52:02 AM PST by TiGuy22
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To: DouglasKC

Never give up the con....


9 posted on 01/16/2025 11:22:50 AM PST by delchiante
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To: DouglasKC

Any con artist will tell you, no matter what, never give up the con.


10 posted on 01/16/2025 11:28:56 AM PST by hinckley buzzard ( Resist the narrative.)
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To: delchiante

Oh, you beat me.


11 posted on 01/16/2025 11:30:30 AM PST by hinckley buzzard ( Resist the narrative.)
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To: bert

Yup—they build a huge metropolitan area on a desert and then complain about the “climate”.

You cannot make up this stuff.


12 posted on 01/16/2025 11:31:33 AM PST by cgbg (It is time to pull the Deep State out of the mass media--like ticks from a dog.)
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To: butlerweave

That’s right.


13 posted on 01/16/2025 12:01:30 PM PST by No name given ( Anonymous is who you’ll know me as)
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To: rey

Climate Change tribes believe black cats causing California’s “Insurance Crisis” too.

They abuse the use of stupidity.


14 posted on 01/16/2025 12:30:14 PM PST by Vaduz
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To: rey

Climate change causes dandruff.


15 posted on 01/16/2025 12:41:35 PM PST by George J. Jetso
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To: rey
"... the Santa Anas..."

Why would Santa Anna (his ghost) be burning down LA?

Could he be getting revenge on Hollywood for their portraying him as a villain in The Alamo I & II and similar movies?

Inquiring minds want to know.

16 posted on 01/16/2025 1:52:05 PM PST by CardCarryingMember.VastRightWC (Unity? Of course! I pledge to respect your President as much as you respected mine the past 4 years.)
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To: rey

AS I UNDERSTAND:

CALIF Legislature demanded to be in charge of the rates Insurance companies could charge.

Since the ratio of BUSINESS persons in Calif Legislature who knows WHAT IT TAKES to run a business is about 2%, they got up a head of steam & demanded premium rates that would not cover a loss.

INSURERS QUIT RENEWING POLICIES. THEY ARE NOT A CHARITY.

NO DIFFERENT THAN a fast food joint charging $45 for a hamburger——PRETTY SOON, they will not be selling anything.

INSURANCE COMPANIES are in the RISK BUSINESS...ALWAYS HAVE BEEN.

The CALIF LEGISLATURE WENT INTO A FRENZY & COST THESE HOMEOWNERS THEIR COVERAGE.

NOT CANCELLATIONS-—REFUSING TO RENEW-—
NOT THE SAME THING.


17 posted on 01/16/2025 2:09:54 PM PST by ridesthemiles (not giving up on TRUMP---EVER)
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To: TiGuy22

HOW MANY HOMELESS HAVE STARTED THOSE FIRES???


18 posted on 01/16/2025 2:10:36 PM PST by ridesthemiles (not giving up on TRUMP---EVER)
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To: rey
The money paragraph...

In 1988, California passed a law that forced insurance prices down by 20 percent, banned providers from using forecasts of future risk to set prices, and subjected all future price increases to government oversight. With rates severely decoupled from risk, the state saw extensive development in some very fire-prone areas. Then, after an exceptionally bad fire year in 2017, insurance providers tried to get approval to raise premiums to account for the high level of risk across the state. The government said no. As a result, seven of the twelve largest home insurance providers pulled out of California. And that trend is continuing today.
19 posted on 01/16/2025 10:22:48 PM PST by SpaceBar
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