Insurance companies pull out of California due to climate risks and fire prevention issues.

Insurance companies are struggling to keep up with the increasing damage caused by climate-fueled disasters such as wildfires and hurricanes. State Farm, the largest property insurer in California, has announced that it will no longer write new policies for homeowners or businesses in the state due to the high wildfire risk. Property insurance systems are collapsing under the weight of climate change across the country, even without statewide limits on rate increases. The inability to increase premiums to profitable levels is making it too risky for insurance companies to continue operating in vulnerable areas.