I worked in an insurance brokerage in CA for about 10 years. Property and Casualty wasn't my line but you make friends and learn what's going on.

The consensus of many of my colleagues was that State Farm had no business writing in those markets in the first place. They are a middle market company but when the high net worth companies (AIG, Nationwide, etc.) started pulling out of CA a few years ago because they had taken too many losses, SF took the opportunity. (Real estate was hot, and you need insurance for the mortgage so there was demand.). However - and this is a critical point about risk management in any line - companies don't buy claims. In life insurance, there is a 2-year suicide clause for a reason. State Farm was looking at a form of suicide. I was not at all surprised to see them pull out when they did.

Big problem is the inability to get coverage. What will that do to real estate? Lara, the insurance commissioner is pushing guaranteed issue for brush areas. He is eyeing being governor when Nuisance terms out. Look at me! I am for you little people! Asshole, it will just result in more companies leaving the state. For too long, CA has thrown its weight around because of its size, but companies are looking at the data and it is just not worth it.

That said, what is probably going to be a disaster is the FAIR plan which has been the state plan of last resort and is tremendously underfunded. But, I suspect CA will find a way to blame the industry to deflect from their own dereliction of duty. (Who issued permits to build in these areas? Who hasn't managed the land properly?) I get why people get upset at carriers but it pisses me off because this shit does not happen in a vacuum.

I honestly do not know where this is going to end up. I texted a friend of mine yesterday who I used to work with at the brokerage because I knew she was busy. She responded at 10:30pm last night and said it is bad. Worse than 2017 and 2020.