“Insurance for CA businesses & homeowners” Greg Phister & Dave ScheiberOur very own Dave Scheiber of State Farm Insurance & Greg Phister of Allstate Insurance spoke to the club about the state of the Insurance industry in California  Insurance dates back to the 1500s when Mr. Lloyd (Lloyds of London) first came up with the concept of insurance at a pub, working as an intermediary between ship owners & underwriters, who were willing to take on the risks associated with travel (pirates, fierce seas etc..).  In its basic form, insurance matches risk to premium and is a way to help an individual (or business) manage risk, Wildfires have drastically changed the homeowner’s insurance landscape in CA.  Dave pointed out that the number of wildfires has not grown over the last 30 years, but their intensity has exploded and today with so many people living in rural areas, losses have as well. Companies likes his now pay 1.33 in claims for very dollar they take in. The CA. insurance industry is very heavily regulated, that also makes change slow and difficult.

Greg spoke to changes today, it may take 30 days to get homeowners insurance now, versus what used to take 15 minutes. There are official “Admitted” insurers, who are backed by the state and who’s losses would be covered if insolvent and “non-admitted” carriers, who are not approved by the state.  The CA Fair plan is available for those who are not able to get insurance, it is a type of insurance as last resort, that CA runs, but is backed by the admitted insurance companies. It is very expensive, which Greg mentioned has negatively effected home prices in certain uninsurable rural areas, as owners may not be able to afford new coverage and buyers wanting to buy at discount due to massive insurance bills.