- Kim suggests a public option for homeowners insurance. Sounds like a good idea. But imagine what would have happened to the California budget this year if a significant fraction of LA wildfire losses were the state’s responsibility. www.sfchronicle.com/politics/art...
- That’s what reinsurance is for…Jan 23, 2026 07:05
- Often when a government acts as the insurer of last resort, it does not (have to / choose to / know how to) operate according to actuarial standards. :((((( But I'm just a guy, I can't really support that statement with details of a government operation -- do you know more?
- No expertise on my side either and maybe it is possible that states cannot reinsure or issue catastrophe bonds or do other forms of risk spreading…
- Catastrophic risk is hard but not impossible to manage at the state level because of a lack of diversification. National insurance companies have national all peril reinsurance which is more affordable and available than say, California specific wildfire reinsurance (not generally available).