@patwater

Prop 103 has got to be one of the most quintessentially Californian and dumbest pieces of policy... """ Under traditional Prop 103 regulations, insurance companies were required to calculate their projected fire losses based on a 20-year historical average of actual past fires.The Problem: In a rapidly changing climate, historical data is backward-looking. It treats a massive, unprecedented fire season like 2017 or 2018 as a historical anomaly rather than the new normal. The Fallout: Insurers argued that relying solely on past data left them vastly under-hedged for future risks. Because they were legally blocked by Prop 103 from factoring in forward-looking climate projections, many chose to manage their risk by dropping hundreds of thousands of policyholders in high-risk zones (like the wildland-urban interface) rather than trying to get a rate approved that they felt was "inadequate."

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