Mismanagement of California and your canceled insurance policy

April 11, 2024

Stacy Korsgaden


As policy holders are receiving cancellation notices in the mail, the insurance industry is struggling to survive. Industry leaders are grappling with massive fire losses, increased claims payout, inflation, and an actuarial system that did not account for state leaders releasing criminals and a government that would like to regulate and control.

It’s important for Californians to realize the insurance industry protects the American Dream. California’s prosperity is protected by insurance choice. Strength from the system comes when companies compete for business and offer exceptional service.

The state sees prosperity, too, when companies thrive through tax revenue. When we see what is happening through California’s Department of Insurance, we see a state straying from the principles of free market capitalism. If California continues down this road, the over regulation and state control will threaten the very foundation and economic stability the insurance industry provides.

The conflicting statements from the Department of Insurance show a department “concerned about overregulation, while simultaneously offering a strategy of new regulations, proves government overreach.

The Department of Insurance continues to ignore the perils, along with the propositions they should be working hard to reform: Proposition 103 (Insurance Regulation passed in 1988), Proposition 47 and 57, causing increased crime and criminals on the streets, and the overstep of environmentalism when dealing with forest management.

The current reality is concerning. The potential of insurance companies submitting to government support is destroying the very essence of free-market principles. This shift toward “corporate socialism,” similar to the health insurance industry, jeopardizes the industry’s integrity and its commitment to serving the customer.

The insurance industry is the foundation of a successful community. Families and businesses are protected against uncertainty. Only by insisting government manage the perils they have been ignoring for too long, rejecting government controls and regulation forced onto this vibrant industry, can we guarantee prosperity for future generations.

Stacy A Korsgaden, 35 year insurance and financial services professional. consumer advocate for insurance choice and customer protection. She can be reached at stacy@stacykorsgaden.com.


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An Insurance saleswoman writes (yet another) self-serving opinion piece saying how important her industry is and how she should be able to do what she wants free of any regulation. How exactly is this worthy of publication? What’s next? Massage therapist says massage therapy is the cornerstone of a thriving society and should be free of regulation? Can we all write our own opinion pieces saying how important our specific jobs are?

Well,there must be something really wrong when insurance companies are ditching California in droves. You’d think an insurance professional might know something about that?

Insurance is a necessary evil, as are banks and attorneys, and the more the state mucks in the waters the dirtier it gets.

Laissez-faire politics and the mythical “free market” are the reason insurance carriers are leaving California. Because the state failed to mandate PG&E maintain modernized safety standards and equipment and instead pay dividends to its stockholders tens of thousands of homes and millions of acres have burned in just the last five years. These were avoidable fires and now you’re paying, if you can even get it, insane insurance prices plus PG&E has increased your bill to cover the costs of those fires.

So please, spare me the tired and, frankly, dimwitted cliches about government being the problem when we are losing homes so a few executives and a small class of stockholders can profit

I agree about PG&E, but who regulates the three power companies in this state? Yes, you can say it the PUC. And who appoints the commissioners? Come on man say it the Governor. Our electric power is the not a free market, it’s Nuwscums’ appointed PUC.