California Brokers Seek Creative Coverage Amid $99 Billion Insurance Losses

In 2023, California faced $12.5 billion in insured losses due to natural disasters, contributing to a total of $99 billion across the U.S. The situation has strained insurers, with many pulling out of the California market due to the inability to raise rates amidst regulatory challenges. This has led to brokers employing creative solutions, such as layered policies, to manage risk. Concurrently, a recent ruling from the Chhattisgarh High Court in India emphasized that insurance companies cannot evade liability due to cheque dishonor, reaffirming the obligation to compensate claimants in motor accident cases. Additionally, a California federal court decision highlighted the risks corporate policyholders encounter when obtaining new Directors and Officers (D&O) insurance after filing claims under prior policies, stressing the importance of understanding policy exclusions. These events underline the complexities and challenges in the insurance industry, both in the U.S. and abroad.