The 1.2 trillion dollar problem exists because insurers fudged their risk calculations to compete with each other, and are blaming climate change as a reason they can’t stay solvent when their risky models fail to keep delivering profits.
The two “points” I see being made are that poor insurers can’t raise rates because nobody wants them to because it’ll slow growth, but also, some states have protections on how quickly rates can be raised, so insurers that raced to the bottom are stuck there. Meh.
It’s kind of a stupid article.
The 1.2 trillion dollar problem exists because insurers fudged their risk calculations to compete with each other, and are blaming climate change as a reason they can’t stay solvent when their risky models fail to keep delivering profits.
The two “points” I see being made are that poor insurers can’t raise rates because nobody wants them to because it’ll slow growth, but also, some states have protections on how quickly rates can be raised, so insurers that raced to the bottom are stuck there. Meh.