I did read it, thanks for laying out your experience.
The evidence I’d look for is something like their revenue vs payout over maybe the last 5 years?
I think a lot of this stuff can be very unintuitive, because we look around, and everything seems fine, and nothing seems to have changed, but they’re operating at a bulk statistical level, and their models revised on recent trends are probably telling them that they can’t profitably insure you for the amounts they’re allowed to charge. Some of that is that labor to rebuild/replacement cost has gotten much more expensive (we see that in our insurance rate changes despite being in an area with very little catastrophic risk).
And CA politicians’ response is probably some crowd pleasing but ultimately harmful “you can’t profiteer off our people, you’re not allowed to raise rates more than 3%” or something. So the only winning move becomes not to play except in the areas where you can make that work.
It does sound like they were just trying to find a way that they could cancel your policy without getting in trouble with the state insurance commission, though I don’t know enough about insurance to say if/why they’d need to.
The evidence I’d look for is something like their revenue vs payout over maybe the last 5 years?
I think a lot of this stuff can be very unintuitive, because we look around, and everything seems fine, and nothing seems to have changed, but they’re operating at a bulk statistical level, and their models revised on recent trends are probably telling them that they can’t profitably insure you for the amounts they’re allowed to charge. Some of that is that labor to rebuild/replacement cost has gotten much more expensive (we see that in our insurance rate changes despite being in an area with very little catastrophic risk).
And CA politicians’ response is probably some crowd pleasing but ultimately harmful “you can’t profiteer off our people, you’re not allowed to raise rates more than 3%” or something. So the only winning move becomes not to play except in the areas where you can make that work.
It does sound like they were just trying to find a way that they could cancel your policy without getting in trouble with the state insurance commission, though I don’t know enough about insurance to say if/why they’d need to.