I’ll note that a large chunk of the burned properties depend on the state-run FAIR plan, which provides much weaker coverage (eg: not replacement cost) than private insurers. The FAIR plan also has limited reserves, which it will replenish by issuing an assessment on commercial insurers and their policyholders.
To be clear, had the insurance companies not taken all of the money out of their reserves as profits there would be lots of money to pay out the payments that the insured bought insurance for. This isn’t about an unsustainable industry, just unsustainable profit taking.
Can I fully agree with you about them doing that, while also maintaining that in the long run insurance of all kinds will be unsustainable in light of the ongoing (and really just beginning at this point) climate catastrophe, not to mention the whole rest of the polycrisis facing humanity
See also, banks, airlines, pharma and most tech giants.
