There’s a storm brewing in the property insurance market, and companies and consumers alike are starting to feel it.
BlackRock CEO Larry Fink told FOX Business last month that not enough attention is being paid to the fact that major insurance companies are fleeing California and Florida because they cannot raise rates high enough to meet returns. Fink warned, “We’re displacing a really large segment of America today that are not going to be able to afford homeowners insurance if they are in an area of risk.”
Big names including State Farm, Allstate, and Farmers Insurance have announced they are not writing new business in California, and seven insurers have been declared insolvent in Florida since early 2022.