CA insurance crisis: Thousands to lose coverage as two more insurers withdraw

The Insurance Commissioner is also an elected position now, so there is an incentive for them to succumb to populist pressures to climb up the poltical ladder (eg. Govenor, Senator, Congressmember)

Edit: listen to CharlesW. I'm incorrect on the fact that it wasn't enforced until recently

Re: CA insurance crisis: Thousands to lose coverage as two more insurers withdraw

#8

Post by tekla » Thu, Apr 18, 2024, 9:33 PM UTC

Exactly what pretty much everyone expected (except for the people who were praying for a miracle from god)

Re: CA insurance crisis: Thousands to lose coverage as two more insurers withdraw

#9

Post by alephnerd » Thu, Apr 18, 2024, 9:38 PM UTC

The major reason insurers are leaving is because California has been considering enforcing Prop 103 recently, which has begun spooking insurance providers into leaving.

The Insurance Commissioner is also an elected position now, so there is an incentive for them to succumb to populist pressures to climb up the poltical ladder (eg. Governer, Senator, Congressmember)

Edit: listen to CharlesW. I'm incorrect on the fact that it wasn't enforced until recently

Re: CA insurance crisis: Thousands to lose coverage as two more insurers withdraw

#10

Post by jimrandomh » Thu, Apr 18, 2024, 9:52 PM UTC

This is what happens when government officials are too severely ignorant of economics, and try to make things cheaper by decreeing prices. They decree a price for something that is below what it costs to provide, and all the sellers stop selling.