Natural disasters are becoming more severe and costly—who should bear the financial burden? We explore the tension between socialized risk and market-based insurance.Topics covered include:The surprisingly large percentage of natural disaster losses that are uninsuredWhy natural disaster severity is increasingA deep dive into the complexity of the home insurance market, including state-run home insurance plansHow California has tried to update its home insurance regulations, leading to potentially greater coverage but higher premiumsHow socialized insurance relieves the cost burden to consumers but can also lead to riskier behavior and adverse risk selectionEpisode SponsorsAsset CampNetSuite Insiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesCalifornia wildfires: What we know about L.A.-area fires, what caused them, who is affected and more by Tim Stelloh, Marlene Lenthang, Rebecca Cohen and Phil Helsel—NBC NewsClimate change is showing its claws: The world is getting hotter, resulting in severe hurricanes, thunderstorms and floods—Munich REShaping the Future of Wildfire Insurance in California: New Insights from the Most Comprehensive Wildfire Risk Model in the Market by Firas Saleh—Moody'sInsurers’ Rule Change Puts California Homeowners on the Hook for L.A. Fire by Jean Eaglesham and Sara Randazzo—The Wall Street JournalCommissioner Lara issues landmark regulation to expand insurance access for Californians amid growing climate risks—California Department of InsuranceCalifornia Was Already in Home-Insurance Crisis Before Los Angeles Infernos by Jean Eaglesham and Joe Flint—The Wall Street JournalThe World Is Getting Riskier. Americans Don’t Want to Pay for It. by Greg Ip—The Wall Street JournalReinsurers little exposed to LA fires after retreat from disaster risks by Lee Harris—The Financial TimesA Survey of Residual Market Plan Assessment and Recoupment Mechanisms by Nancy Watkins, Robert Lee, and Rehan Siddique—MillimanRelated Episodes481: How to Navigate the Crippling Home Insurance Crisis444: Natural Disasters: Are They Truly Increasing? Investments MentionedStone Ridge High Yield Reinsurance Risk Premium fund (SHRMX)See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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“What did the council decide on item 42?” — answered with the speaker and the moment.