California Insurance Market in Crisis

Carrier Management Magazine • Quarter 3 2023 Edition

• “Has anybody addressed the issue at this point of getting insurance?”

• “No [insurance] company can offer products that lose money over the long run because the company will simply cease to exist.”

The palpable sense of desperation was apparent in the question of a distressed insurance agent and the statement from a carrier representative during a four-hour California Department of Insurance workshop in July. CDI wanted interested parties to weigh in on the use of catastrophe models in ratemaking but many participants testified about the worst insurance crisis in decades instead.

This edition examines insurance and reinsurance market troubles in California and Florida, proposed and in-progress fixes. Included are profiles of tech-providers focusing in on climate-driven risks contributing to the market problems and their tools to analyze them.

In This Issue

Cover Story: Insurance Market Crisis

Insurers Have Their Say

California's growing availability crisis is poised to get worse unless changes to ratemaking beyond the introduction of forward-looking catastrophe modeling take ...

Safer From Wildfires

Commissioner Lara's new regulation, California Code of Regulations Section 2644.9. Consideration of Mitigation Factors; Wildfire Risk Models, effective Oct. 14, 2022, ...

Executive Viewpoint



Leadership and Management

8 Tips to Recharge Your Engine

In this edition of Leadership Tips, Carrier Management has gathered some expert advice to help you relax, reset and recharge your leadership engine.

Technology and Automation

Loss Trends for Severe Convective Storms

Loss trends for severe convective storms (SCS) have increased over the past 15 years and even more during the past five years, according to Dan Dick, global head of ...

From the Editor

The Long Tail: Aftermath of Disaster

While I was doing research for this edition, I came across these paragraphs, written by one of the leaders of a technology company, recalling a previous role he had ...