Vinod Khosla

That's right. And that's what happened in California. And by the way, State Farm left a lot of California.

That's right. And that's what happened in California. And by the way, State Farm left a lot of California.

Going in one anyways, we ended up getting the for most homeowners, when the cost of insurance gets to a certain threshold, you don't have budget for it, you can't afford it. And so that's a lot of why the insurers leave, they'll underwrite anything at any price, but they just know that most consumers can't afford it. Here's some other interesting statistics, related but unrelated.

Going in one anyways, we ended up getting the for most homeowners, when the cost of insurance gets to a certain threshold, you don't have budget for it, you can't afford it. And so that's a lot of why the insurers leave, they'll underwrite anything at any price, but they just know that most consumers can't afford it. Here's some other interesting statistics, related but unrelated.

In the early 1900s, the city of Phoenix, Arizona averaged five days a year of temperatures of 110 degrees or warmer. By the 2010s, Phoenix averaged, during the 2010s, 27 days a year where the temperature was 110 or higher. Since 2021, Phoenix averaged- 100 plus days. 42 days. And in 2024, it's been 70 days so far this year that the temperature is over 110.

In the early 1900s, the city of Phoenix, Arizona averaged five days a year of temperatures of 110 degrees or warmer. By the 2010s, Phoenix averaged, during the 2010s, 27 days a year where the temperature was 110 or higher. Since 2021, Phoenix averaged- 100 plus days. 42 days. And in 2024, it's been 70 days so far this year that the temperature is over 110.

So this is affecting, and so there's increased risks in California with wildfires, increased risk with hurricane. There are a lot of these factors, and I have friends that work in reinsurance and in the insurance markets.

So this is affecting, and so there's increased risks in California with wildfires, increased risk with hurricane. There are a lot of these factors, and I have friends that work in reinsurance and in the insurance markets.

Jason, it's called a mutual. And those are like a good chunk of the industry are mutuals where it's the shareholders are the members and they all share the risk and the ownership.

Jason, it's called a mutual. And those are like a good chunk of the industry are mutuals where it's the shareholders are the members and they all share the risk and the ownership.

So if you do proper underwriting, what's happened in the last couple of years is all the reinsurance companies and all the insurance companies have had to re underwrite the rates that they charge for insurance, because the frequency of a disaster has gone up. And the new price that they should be charging is so high, it doesn't matter how the capital structure is set up.

So if you do proper underwriting, what's happened in the last couple of years is all the reinsurance companies and all the insurance companies have had to re underwrite the rates that they charge for insurance, because the frequency of a disaster has gone up. And the new price that they should be charging is so high, it doesn't matter how the capital structure is set up.

It's simply, there's, there's one big event that's going to cause a big wipeout for a large number.

It's simply, there's, there's one big event that's going to cause a big wipeout for a large number.

That's right.

That's right.

I think they're different, but Florida is like, I mean, I don't know how you do the math on, I just don't know what you do on a trillion dollars of real estate value with half a trillion of mortgages. when you have real exposure on loss more frequently than one in 100 years, to your point, they need to be repriced.

I think they're different, but Florida is like, I mean, I don't know how you do the math on, I just don't know what you do on a trillion dollars of real estate value with half a trillion of mortgages. when you have real exposure on loss more frequently than one in 100 years, to your point, they need to be repriced.

And how do you reprice those homes in the significant level that they need to be repriced without causing massive economic and social consequence? That's what's kind of, I think, challenging me in thinking about what's the path here.

And how do you reprice those homes in the significant level that they need to be repriced without causing massive economic and social consequence? That's what's kind of, I think, challenging me in thinking about what's the path here.