While “plenty of other states have seen a rise in natural catastrophes” in recent years, none have seen a drop-off in property insurance the way California has, Jerry Theodorou, the director of the finance, insurance, and trade program at the R Street Institute, told the Washington Examiner┬áin an interview earlier this summer…

While reinsurance premiums have spiked in recent years to reflect the uptick in extreme weather, providers in California, unlike other states, are barred under state law from passing those costs along to consumers.

Insurance companies can cover climate risk and weather risk, “but they need the flexibility to adjust their pricing and their coverage so that it’s something that doesn’t bankrupt them,” Theodorou said.