California E&S Insurance

The way CalFIRE works is that all the insurance companies active in CA will have to collectively pay for the unmet demand on the fund. There is likely to be 100's of millions to billions in claims against a $200M fund, or something like that, so it will be a meaningful number. The insurers will pass this on to their remaining customers -- ie California homeowners -- and probably do everything they can to exit the California market if they take a loss on it, which will make the conditions worse going forward. I'm no expert but this is my general understanding. There have been some big stories on it lately, including this one (paywalled, sorry) [https://www.latimes.com/business/story/2024-07-26/insurers-dont-want-to-cover-california-homeowners-wildfire-risk-can-catastrophe-modeling-bring-them-back](https://www.latimes.com/business/story/2024-07-26/insurers-dont-want-to-cover-california-homeowners-wildfire-risk-can-catastrophe-modeling-bring-them-back) And some new stories about it in the context of the current fires.

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