California Last-Resort Insurer Unprepared for Big Disaster
- Potential losses have ballooned to $311 billion, chief says
- State unveils new rules to coax back companies that have left
Relatives walk through the remains of their family's home after it was destroyed during the Highland Fire in Aguanga, California, US, on Tuesday, Oct. 31, 2023.
Photographer: Ethan Swope/BloombergThis article is for subscribers only.
California’s property insurer of last resort told lawmakers that it’s financially unprepared to cover the costs of a major catastrophe in the state.
The plan now faces $311 billion in potential losses, up from $50 billion six years ago, California FAIR Plan president Victoria Roach said in a state legislative hearing Wednesday.