Are insurance companies making profits as natural disasters multiply?

40 Comments

1. Everyone is quick to note that they dropped renewals but never mention that insurance companies were sounding the alarms that the fire prevention systems were being neglected for years.

2. Insurance companies shouldn't have to pay for someone to rebuild in a bad location. They have the right to profit.

3. Record profits? It’s nothing compared to private equity.

4. Blame newsome. He kept insurance rates low.

5. What’s funny about this is insurance companies are not even willing to work with homeowners who have fire resistant measures on their home/property nor do they insurance non-traditional housing like container homes that are fire proof and the preference of Australia to prevent loss. There were fire resistant homes in the LA fires that are largely untouched while their neighbors homes are dust. Insurance like most American industries is driven by their potential profit and not serving their customers.

6. Free Luigi

7. Liberal media trying to cover the gross incompetence and lack of planning of Newsom, LA mayor and Democrats. Insurance works from standards of risk. If the government fails to provide fire prevention, brush management, lack of water resources, fire risk goes up. These fires were preventable with common sense land management. Santa Ana winds have been around as long as the desert to the east. Not climate change, liberal ignorance and mismanagement.

8. Thanks for the hot f*cking news flash: yes, insurance companies make record profits from these disasters….who would’ve thought

9. Insurance is incentivized to cause fires because they get to raise prices that never go down and earn a higher total profit because the percent profit max is on a higher total. Make this kind of fraud and terrorism illegal.

10. Insurance is supposed to be a gamble on profit. Not a guaranteed minimum profit with free bailouts when you lose. And they should’ve be able to fraud the cost of things to artificially inflate prices to pretend they lost more than they did.

11. Of course they aren’t a charity organisation duh

12. It’s all climate change, according to this CBS News. He fails to mention empty reservoirs, fire hydrants, funding cuts to the fire department, failure to properly manage forest and brush waste, numerous fire fighting equipment inoperative, over regulation of the insurance industry, lack of total preparedness for an annual environmental event, and failure to properly protect public safety!

13. State. Farm pays Patrick Maholmes and AArun Rodgers😅

14. Of course they should be making a profit

15. Insurance is required in 2025. The industry (health, home, auto, life) should be federalized.

16. Yes

17. You have to understand that these natural disasters are heavy hitters for insurance companies. It’s not something you can accurately budget for. Especially when the intensity and frequency of natural disasters are getting worse. You may hate insurance companies for whatever reason, but it cost money to replace damaged goods and it cost more money than ever because we’re having more events than ever that are bigger than ever And did I mention the cost of goods and service services to replace those goods has gone up. That means ensures pay more money than ever to do what they have to do. That means you are going to be charged more money than ever for and insurance policy. In some cases, they’re just going to say no we won’t take the risk.

    This is where it’s gonna get interesting because some states are going to have to create their own insurance policies and what happens in those cases they may not be able to cover 100% of damages sort of like federal flood insurance there’ll be a cap and after that you’re gonna have to figure it out on your own . That’s where many of these states that are prone to natural disasters are headed. They’re going to have to have their own insurance policy for the state everybody’s gonna chip in and if you get hit, you’re only gonna get a certain amount of money and that’s it.

18. There dropping home owners insurance, but they are raising car insurance to make up for the lost

19. Queue hedge funds buying all the burned up ground for pennies on the dollar…

20. Bottom line: Insurance is a legal scam

21. Insurance (pretty much all commercial and personal lines) needs to move out of state control and into federal regulation

22. My house was damage due to hurricane and insurance paid to rebuild, so i am expert on this topic. I able use the money to upgrade my home, made it bigger, chnage layout, got new evrything: new hvac, new roof, new wiring, new kitchen/ appliance. It was wonderful. They even pay for all personal property damages too, required by law, reimburse for rentals.
    Most home in Palisade average 4 million, one actor even said his collectible expensive book gone, chaching, big check for that.
    Resevoir to put out fire went EMPTY for 9 month due to a rip in bird poop cover…wow, even a 5th grader can tell this is a lie for a scam. Wo resevoir is this fire burn entire city. Also 2008 summer come to LA, need clearing lands for new builds. 240 billion damage mean 240 billion for jobs in LA builder now to 2030. SO EVERYONE WIN BIG !!! NO LOST HERE !!!

    EVERYONE KNOW THIS IS A CAREFULLY YEARL LOnG PLANNED SCAM.

    Only loosers are everyone else in America must pay for double home insurance. Hey LA is capital of insurance scam, so this is nothing new, just done at mega scale.

    This plus run away 30Tril debt, is typical sign of a decay of a civilization, scam/fraud/political and fiscal corruption, the signs are all here.

23. Have you seen their stocks? The CEO’s brag how much revenue they’re bringing in

24. If an insurance company doesn't pay a valid claim (loss due to a named peril), then blame the company. Short of that, insurance companies are not at fault.

25. you (the policy holder) transfer risk to the insurance company in exchange for money. If the insurance company can't charge a premium greater than the risk, they won't write the policy. that's how insurance works. Homeowners and governments (local & state) have to take steps to lower risks. Homeowners can reduce risks by fire-proofing their homes. Governments can reduce risks by fireproofing the environment and with building regulations / codes.

26. Single payer insurance is the answer eliminate private insurance

27. Trump and Republicans are responsible for all this period

28. Look up the word capitalism.

    The oligarchy of america runs off profits

29. Welcome to power of super wealthy companies and super wealthy people. They’re happy to take everyone money and as soon as they have to pay they’re no where to be seen. Then the government has to step in. This companies and people should have their assets and banks account taken off them.

30. You know CBS should open their own insurance agency in CA lol

31. Company: You're in good hands with Allstate.😎

    Customer: My house was destroyed in a wildfire.🤕

    Company: Say what now?🙄

32. BS! Insurance uses their record profit to buy off corrupted politicans like the CA Insurance Commissioner. The last time we had this kinda fire was 30 years ago. Millions of homeowners have paid insurance for 30 years, how much profit is that? Greedy insurance only wants to accept money but not payout. Where's Luigi ?

33. Concept of insurance is you average your profit and loss over time. Profits from the good years pay for loses in the bad years. Insurances have no problem taking profit year after year when there's no disaster. The second they have a loss they want out. In short they are no longer in the insurance business. They want zero risk. They want to be banks. Remember pre-existing condition? Health insurance companies used to cherry pick. They deny coverage to people with pre-existing conditions to maximize revenue and minimize pay outs. Getting rid of pre-existing condition is how we fixed health insurance. We need to do the same for home insurance. They must write policy in all 59 states or they don't get to write any policy at all.

34. Misinformation, this lady was saying revenue was “net profit” and then followed up saying State Farm had net losses.
    Revenue and net profit are totally different

35. Taking the money and running. Got it.

36. And they treat the normal workers like trash. Ceos class are the only ones winning.

37. I wonder how many billionaires will move to Texas after this fire

38. Duhhh…

39. Insurance companies, banks, just there for shareholders, and profit, not there for people anymore.

40. The insurance companies are insured for major events. Their insurance rates will go up but don’t cry for. You see they also invest in other types of assets which they fail to mention.

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