The Allstate Corporation

Friedberg support ×2 ▼ on 📈 California's suppressed insurance rates break the market and land on the taxpayer E211 · 2025-01-18 ▶ 27:35

Well, California has got, at this point, price controls or a mechanism for controlling the change in price on insurance, on housing services. And now they've got this non-solicitation rule. All three, I think, are very challenging to, I think, an appropriate market recovery. ... But I think it's going to be one of the biggest burdens going forward and it could actually lead to a pretty significant effect in long-term housing prices in California. Because of the way that the insurance market is structured and regulated in California.

Jason support ×2 ▼ on 📈 California's suppressed insurance rates break the market and land on the taxpayer E210 · 2025-01-11 ▶ 43:24

But to the question of who is responsible, it is economically going to make no sense to rebuild unless you can get that insurance. It is a coveted place to live. But because of the construction costs have gone absolutely parabolic in California, because of regulations, you're talking about $14 million in income to build a $7 million house.

And so the free market solution is the only solution. If you look at I have an investment in a company called Kin Insurance, and they specialize in direct to consumer insurance for areas that are plagued with natural disasters... So you're not allowed to use a weather model to price in, you know, your decision making for insurance in this state. And that just doesn't make a lot of sense.

Chamath support ×2 ▼ on 📈 California's suppressed insurance rates break the market and land on the taxpayer E210 · 2025-01-11 ▶ 42:18

So the individual homeowner is not going to be in a position to rebuild. I think that the liabilities of the insurance claims are going to be so massive that the state is going to look to the federal government to build them out.

Friedberg support ×3 ▼ on 📈 California's suppressed insurance rates break the market and land on the taxpayer E210 · 2025-01-11 ▶ 58:56

They're driving real estate value up because they're not allowing the cost of insurance of that real estate to naturally float. And so by driving real estate values up, the economy looks good, they make property taxes, income comes in, but at the end of the day, the bill is going to come due. And in the case of Florida and in the case of California, either the state government or the federal government is going to step in and pay the difference.

Friedberg support ×2 ▼ on 📈 Record Atlantic sea-surface temperatures drive the biggest hurricane season ever E151 · 2023-10-27 ▶ 1:13:29

When an event like this happens, those reinsurance markets take a loss and the loss causes them to raise rates significantly ... the insurance companies pass those rates on to consumers and to property developers and to the people that have mortgages

Friedberg support ×1 ▼ on 📈 Record Atlantic sea-surface temperatures drive the biggest hurricane season ever E137 · 2023-07-14 ▶ 1:19:08

we could talk about the sea surface temperatures in the Atlantic that's likely going to drive the biggest hurricane season we've ever seen this coming season

Jason support ×2 ▼ on ⚡ Brutal 2021 western fire season plus grid brownouts E45 · 2021-09-04 ▶ 1:08:51

I think what we're realizing is the market now is so convinced that global warming is real and you can't deny it, that we just can't insure for it. Therefore, we're going to have to make serious societal changes.

Chamath support ×3 ▼ on ⚡ Brutal 2021 western fire season plus grid brownouts E45 · 2021-09-04 ▶ 1:06:20

I co-founded an insurance company called OTT Risk. And we've been trying to build models and price this kind of insurance, climate insurance ... I think what it means is that climate change is going to ravage suburbs and it's going to ravage these sort of like far-flung communities because nobody's going to want to step in there and ensure the parametric risk

Friedberg support ×3 ▼ on ⚡ Brutal 2021 western fire season plus grid brownouts E45 · 2021-09-04 ▶ 1:04:57

right now in Marin County in California, it's nearly impossible to get fire insurance. This is becoming a predominant factor in California, particularly in all the areas with lots of forest land. There's 100 million acres of forest land in California. If a trillion dollars of real estate is actually exposed to fires and you can't get fire insurance, ask yourselves the question, what's going to happen when hundreds of billions of dollars of real estate literally goes up in smoke or gets sold off? ... And ultimately the federal government is going to have these like Katrina events four or five times a year that we're going to be underwriting losses for people's real estate that's valued in a way that doesn't account for the effects of climate change. This is the massive shift in economic value that we're going to, someone's going to have to pay for over the next decade. And this is just the beginning of it all is my strong belief.

Sacks support ×2 ▼ on ⚡ Brutal 2021 western fire season plus grid brownouts E39 · 2021-07-09 ▶ 13:15

And so drought conditions have existed for a long time. Has climate change amplified that and made it worse? Yes. But this is entirely foreseeable. ... The problem for him is that fire season now starts in August. And so, we could be in the middle of fire season when this recall election happens.

Friedberg support ×3 ▼ on ⚡ Brutal 2021 western fire season plus grid brownouts E39 · 2021-07-09 ▶ 2:28

But what matters most is that the moisture conditions in our forest land is lower than we've ever seen at this time of year in history. ... So we're going to have more power demand, we have less power available, we have extremely dry forests. ... And so this is setting us up for a number of possible disasters this year.

Chamath support ×3 ▼ on ⚡ Brutal 2021 western fire season plus grid brownouts E36 · 2021-06-18 ▶ 1:15:36

We are going to have a terrible fire season. There's going to be brownouts probably throughout a lot of the western states. What played out in Texas that affected folks a few months ago, I think will some version of that will happen in many places in the US.

Sacks support ×2 ▼ on ⚡ Brutal 2021 western fire season plus grid brownouts E36 · 2021-06-18 ▶ 1:14:53

And Friedberg's right that we needed much more aggressive forest management. It's not just climate change. It's also forest management. We don't do it in California anymore. And so I think we are in for a really hellish fire season.

Friedberg support ×2 ▼ on ⚡ Brutal 2021 western fire season plus grid brownouts E36 · 2021-06-18 ▶ 1:10:06

Well, we are at risk more than ever, right? So we're entering June. So as of June 1st, the California snowpack is down to 0% of normal. That's never happened before. So it's the lowest it's ever been. There is absolutely like no snowpack in the entire Sierra and the entire state. 40% of the state is in a state of extreme drought right now.