Byron Donalds

Scarcity of material, the regulatory environment around getting said material, it is much more expensive to build a home today than it was five years ago, 10 years ago, 20 years ago. And the core part of insurance is the replacement cost of the property. So if the house I own right now, to rebuild it, probably would cost me 10% to 15% more than what I paid for it.

Well, then I can't have an insurance policy written at $300,000 because to replace it costs me X. You see what I'm saying? That's the first part. Nobody wants to say that directly to people. Because housing values are up and building costs are up, it just dovetails that insurance costs are up. Now, how do we stabilize premiums and try to get them to come down?

Well, then I can't have an insurance policy written at $300,000 because to replace it costs me X. You see what I'm saying? That's the first part. Nobody wants to say that directly to people. Because housing values are up and building costs are up, it just dovetails that insurance costs are up. Now, how do we stabilize premiums and try to get them to come down?

I think the first thing is you have to deal with the capital deficit. the capital basis of the balance sheet of these companies, are we going to have to make them continue to carry as much capital on their balance sheet like we do? We might need to look at that.

I think the first thing is you have to deal with the capital deficit. the capital basis of the balance sheet of these companies, are we going to have to make them continue to carry as much capital on their balance sheet like we do? We might need to look at that.

Because if you mess with that a little bit, not too crazy because actuarially it still has to be sound, but you've got to try to find some way where you can stabilize the cost side of their reserves and in order to actually issue payments in any event of loss. The second big thing that I think people are more frustrated about is the speed upon which they get paid.

Because if you mess with that a little bit, not too crazy because actuarially it still has to be sound, but you've got to try to find some way where you can stabilize the cost side of their reserves and in order to actually issue payments in any event of loss. The second big thing that I think people are more frustrated about is the speed upon which they get paid.

I think people will make the premium payments, but when something happens, They want the company to step in and do it. Part of that is adjusters situation. We, we got to figure out, and we tried to do this a couple of years ago with public adjusters and it's kind of been in the weeds and not really thought through too much and figured out, but we got to address that.

I think people will make the premium payments, but when something happens, They want the company to step in and do it. Part of that is adjusters situation. We, we got to figure out, and we tried to do this a couple of years ago with public adjusters and it's kind of been in the weeds and not really thought through too much and figured out, but we got to address that.

What the governor and the legislature did in special session two years ago. Now I want to say around, around litigation was the right step. And so the reforms they did, People won't really see the impact of that for, I think, another two years because at the Department of Insurance, there's a five-year look back on costs in order to set what the new premiums are going to be going forward.

What the governor and the legislature did in special session two years ago. Now I want to say around, around litigation was the right step. And so the reforms they did, People won't really see the impact of that for, I think, another two years because at the Department of Insurance, there's a five-year look back on costs in order to set what the new premiums are going to be going forward.

So I think in about another year or two, they're going to have to go back and do another look back of the last five years to say, okay, now here's what we're going to do. That's like the basis of it. Litigation, lost reserves of the carriers. The other piece is how do we get more carriers into the state?

So I think in about another year or two, they're going to have to go back and do another look back of the last five years to say, okay, now here's what we're going to do. That's like the basis of it. Litigation, lost reserves of the carriers. The other piece is how do we get more carriers into the state?

And that's the toughest issue overall, which is why you have to start looking at what are the capital requirements we're going to put on these carriers because you need more carriers in order to spread that risk out. If you only have a handful of carriers, the premium costs are going to go up, and that's the driver.

And that's the toughest issue overall, which is why you have to start looking at what are the capital requirements we're going to put on these carriers because you need more carriers in order to spread that risk out. If you only have a handful of carriers, the premium costs are going to go up, and that's the driver.

But if you start to push down on the loan laws, on the reserve costs, and something happens and the carrier goes bankrupt, well, now people who had that carrier are now really out. This is not an easy situation to deal with.

But if you start to push down on the loan laws, on the reserve costs, and something happens and the carrier goes bankrupt, well, now people who had that carrier are now really out. This is not an easy situation to deal with.

I think the number one way, the first thing we got to do is make sure that when disaster strikes, we make it as quick as possible for the carriers to step in and try to make people whole. Because then as long as you're being made whole, then you're getting what you pay for.

I think the number one way, the first thing we got to do is make sure that when disaster strikes, we make it as quick as possible for the carriers to step in and try to make people whole. Because then as long as you're being made whole, then you're getting what you pay for.

Right? To that point, to California, what they did in California to deal with what we're seeing here, where they said, we're just going to cap rates, we now see that does not work because the carriers will just leave. That's right. They'll just be like, I'm not writing it. That's right. And you can't force them to write insurance. At that point, it's not insurance.