Subject: Two of Ca's insurance regs main issues
The insurance industry was concerned that California's stance on reinsurance might spread to other states:

1) Unless home insurance companies can find ways to balance costs, they will stop offering coverage:
"California is the only state in the country that does not allow insurers’ rates to be based upon their actual reinsurance costs," Rex Frazier, president of the Personal Insurance Federation of California Insurance says
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(Maybe not?)
"California lawmakers have moved to make changes that will require all insurance companies that do business in the state to write in high-risk areas and will allow them to pass reinsurance costs on to consumers. That will help stabilize the market but will also mean increased rates."
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2) "In times of rapid inflation like today, it is difficult to operate a business when underlying costs are rising significantly," Frazier says. "But it takes six months or more to raise rates through the state approval process."





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