CalChamber Board Gets Briefing on Factors Affecting Insurance Rates

By
CalChamber
-
Sean Kevelighan
Sean Kevelighan, president and CEO of the Insurance Information Institute, presents the CalChamber Board of Directors an overview of the many factors behind the “risk crisis” affecting the rise in insurance rates that has fueled consumer and media attention in recent years. Commenting that insurers don’t make money on the premiums charged but on investment returns from the huge amount of capital they must keep on hand to pay claims, he notes that it will take many years to rebuild the capital used to pay the rise in claims filed following the California wildfires in 2017 and 2018. He says elements in resolving the current crisis for the highly regulated property-casualty insurance industry include Proposition 103, an insurance rate regulation initiative passed by California voters in 1988; and a communal approach to managing risk and building resilience into community infrastructure.