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.
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.