Insurance Companies Moving to Limit Their Loss Exposure to Disasters

I do think that I am right to make the assumption that because insurance companies are all about risk, they are the canary in the coal mine for what is coming soon.

See this article: “Farmers Insurance pulls out of Florida, affecting 100,000 policyholders.”

If people cannot get insurance, they can’t buy a home since the mortgage companies will require insurance.

This is not just happening in Florida. As noted at the end of the article, the same thing is happening in regions where wildfires have resulted in hundreds of millions of dollars in property losses.

Governments will seek to fill the gap in some way or fashion, putting their own fiscal house in jeopardy.

Let’s watch what happens. We don’t need another national disaster insurance program that subsidizes risky behavior and is not self-supporting, much like the problems we have today with the National Flood Insurance Program. Billions of dollars in the hole!