reminds me of the recently enacted FAIR plan in California for last-resort wildfire insurance. It got state dispensation to carry otherwise-disallowed, lopsided balance sheets to cover more people -- but if a small fraction of those people do experience wildfire it'll go bust!
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edit: see below, I was wrong about FAIR being newly enacted
The California FAIR Plan was created in 1968 so I’m not sure where you’re getting your information.
It was entirely self funded by premiums until the Eaton and Palisade fires and unlike the NFIP, still hasn’t been bailed out by the federal government.
throwup238|5 months ago
It was entirely self funded by premiums until the Eaton and Palisade fires and unlike the NFIP, still hasn’t been bailed out by the federal government.
cmcconomy|5 months ago
However as of this year it's got ~$600B of exposure and $400MM in funds. at 3MM/residence that's 133 homes before they're bust, right?
see:
https://ains.assembly.ca.gov/system/files/2025-05/assembly-f...
https://calmatters.org/economy/2025/02/homeowners-insurance-...