The Trouble with Homeowners’ Insurance, Explained
The Dispatch
View Original Source
R.J. Lehmann, editor and chief and senior fellow at ICLE, shared perspective in The Dispatch on the regulatory challenges with homeowners’ insurance in the wake of the Los Angeles wildfires. Read the full story here.
“Regulators have two roles, R.J. Lehmann, editor-in-chief for the International Center for Law & Economics, told Bloomberg: to make sure insurers are solvent, and to protect consumers. Insurers sometimes need to be saved from themselves. For example, insurers have incentive to underprice risks, he observes, in order to attract business from their competition. There’s also a first-mover disadvantage to raising premiums, as it immediately makes that insurer less competitive in the marketplace.”