Reshaping insurance to solve California's wildfire insurance availability issue

In the wake of California wildfires, homeowners are finding it increasingly difficult to find insurance. Traditional homeowners insurance products are inflexible and the underwriting and rating are not designed to effectively accommodate the construction boom near wildland-urban interfaces. In addition, California regulations do not allow insurers to include the cost of mitigating wildfire risk through reinsurance. This white paper explores some of the issues ahead for insurers.