State Street SPDR S&P Insurance ETF

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.

Chamath support ×2 ▼ on 📈 Record 2024 Atlantic hurricane season drives catastrophe losses E199 · 2024-10-11 ▶ 20:06

if you only have a $17 billion re-insurance fund and there's 50 billion of damage, somebody's going to have to come in and cover the gap. And if it's the insurance companies, expect your insurance premiums to double or triple.

Friedberg support ×3 ▼ on 📈 Record 2024 Atlantic hurricane season drives catastrophe losses E199 · 2024-10-11 ▶ 13:01

And we're now looking at one-in-100-year events happening every two to three years in the United States with the hurricane activity that we've been seeing.

Friedberg support ×3 ▼ on 📈 Record 2024 Atlantic hurricane season drives catastrophe losses E182 · 2024-06-07 ▶ 1:11:48

we will see record sea surface temperatures in the August to October timeframe, which will almost certainly push massive hurricane events out of the Atlantic and they will find their way towards the continental US and Mexico

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