Rebuilding California's Insurance System: A New Approach

This is the second installment in our series on fixing California’s insurance system. The first outlined the five pillars that once supported a thriving market.

The Most Maligned Pillar of All: Insurance Companies

Insurance companies don’t owe the state of California anything. They are private businesses, not public utilities. Their purpose is to assess risk, offer protection, and make a profit. That’s not something to apologize for. It’s something to defend.

"Profit is not a dirty word. It’s the backbone of innovation, solvency, and service. It’s what allows companies to pay claims, weather disasters, and compete for your business."

The Problem with Government Intervention

Sacramento punishes insurance companies by imposing price caps, restricting risk assessments, and dictating what products insurers are allowed to offer. This isn’t consumer protection. It’s economic central planning with a friendly face.

• Imposing price caps
• Restricting risk assessments
• Dictating product offerings

A Radical Idea: Let Businesses Manage Their Own Risk

Let businesses manage their own risk. If you build in a fire zone, if you refuse to harden your property, if you want coverage for every possible inconvenience, that’s your choice. But don’t demand that the state force insurers to subsidize it. "That's not fairness. That's theft through regulation."

The Power of Real Competition

Real competition, not command-and-control mandates, creates better coverage, lower prices, and stronger companies. If insurers can compete freely, they’ll serve customers better because they have to.

• Better coverage
• Lower prices
• Stronger companies

The Real Issue: A Government Problem

CALIFORNIA DOESN'T HAVE AN INSURANCE PROBLEM. IT HAS A GOVERNMENT PROBLEM. A CONTROL PROBLEM. A VALUES PROBLEM.

A New Approach: Get Government Out of the Way

It’s time to get government out of the business of business and let insurance companies do what they do best: serve, compete, and survive. That’s how we rebuild the first pillar. Read more about rebuilding California's insurance system at https://californiaglobe.com/fr/rebuilding-the-first-pillar-get-government-out-of-the-way/