Inside Senate Budget’s insurance probe

Sen. Sheldon Whitehouse is using the Budget gavel to go after insurance companies for their climate practices — an investigation that comes as the financial sector grapples with the energy transition.

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Yes, but: Some of Democrats’ assumptions about the insurance industry are misleading, said Jerry Theodorou, director of R Street’s finance, insurance and trade program.

• For example, when State Farm pulled out of California, it cited both “rapidly growing catastrophe exposure” and “a challenging reinsurance market.”
• In short, the state’s regulatory environment was a contributing factor, said Theodorou, who testified at Budget’s hearing on the insurance industry in March.