California

AIG has pulled away from writing some business in California, while other insurers have taken similar steps in that state as well as in Florida.

Under the new rules, which are slated to be completed by December 2024, insurers will be able to raise premiums based on current and future risks as long as they agree to provide a certain share of coverage in areas vulnerable to fires. The existing rules only allow them to consider historical data.

(Bloomberg) --California's insurance commissioner announced a new regulatory plan backed by the industry that would allow insurers to factor future climate risks into their pricing and require them to offer more coverage in fire-prone areas.

First Street estimates that 39 million U.S. homes are insured at artificially suppressed prices compared with the risk they actually face. Of those, nearly 6.8 million homes are covered by state-backed "insurer of last resort" policies.

The lawsuit requests the creation of an abatement fund to finance climate mitigation efforts, an injunction to protect California's natural resources, damages and penalties.

The use of catastrophe models and of sophisticated AI to make coverage decisions are all under debate.

AI-powered catastrophe and risk models use varied sources, including aerial imagery.

Referred to as "vehicle to grid," two-way charging works by sending power to the grid from an electric vehicle's battery while the car is parked and plugged in.

Last month, Farmers Insurance Co. said it would limit sales of new home insurance coverage in California. In May, State Farm General Insurance Co., the state's biggest home insurer, said it would stop writing new policies altogether. Allstate Corp. halted the sale of new policies in the state last year.

CSAA used AI-powered aerial image analysis in a decision to not renew a homeowner's insurance policy in Northern California.

Yellen, who also chairs the Financial Stability Oversight Council, said that a spate of extreme weather events is causing insurers to raise rates on homeowners.

The dispute is over a cyber attack from 2014 through 2015 that potentially exposed personal information of patients at UCLA Health.

AIG's decision comes on the heels of both State Farm and Allstate Insurance Co. announcing plans in recent weeks to stop writing new policies in fire-prone California.

(Bloomberg) --California regulations restrict insurers from using sophisticated computer models to consider the rapidly growing wildfire risks from climate change — and that limitation is a factor pushing US insurers out of the state.

Climate change has increased wildfire risk in California while hurricane losses in Florida have already seen a number of reinsurers cut exposure, Moody's said.

AI tools can help insurers with historical loss projections more effectively predict the impacts of future catastrophes.

The predictive model is powered by AI analysis based on data from over 1,500 wildfire losses.

California's biggest utility said the costs of the Mosquito Fire should be largely offset by insurance and other rate recoveries, according to a filing Thursday with the US Securities and Exchange Commission.

Digital Insurance spoke with Troy about how his role at the insurer has changed since he started at the company in 2019.

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