Top West Insurance Journal Stories of 2023

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Insurers pulling back from an increasingly risky California market grabbed the attention of Insurance Journal readers this year.

This was the subject of the top four most popular stories in Insurance Journal’s West region in 2023. Eight articles on this topic were among top 10 most popular articles and 12 articles on the subject were among the top 25 most read in the region.

Other popular topics included damages from Tropical Storm Hilary, the Maui wildfires, lawsuits, and rate filings to the California Department of Insurance.

Top 10 West Insurance Journal Stories of 2023

State Farm Stops Taking New Applications for Business, Personal Lines P/C in California

State Farm announced in May it will cease accepting new applications for business and personal lines property/casualty in California to deal with increased risks and higher construction costs. The reactions to the announcement included one from the American Property Casualty Insurance Association, which blamed inflation for increasing the costs of claims and said that insurers need higher rates along with other market improvements to deal with increased risks and costs in the state. The following top three most read Western region articles on the California pull-back were an article on Farmers limiting new homeowners polices in the state, a proposal to help keep insurers from pulling back by enabling the use of catastrophe modeling in ratemaking and an article from the American Agents Alliance outlining its proposed fixes.

Tropical Storm Hilary Damage and Economic Loss Estimate in Western U.S. is $7B to $9B

Damage and economic loss from Tropical Storm Hilary reached an estimated $7 to $9 billion, according to August estimates from AccuWeather. Hilary brought widespread flooding through Southern California, washing out roads and bridges, flooding cars and homes, and shutting down businesses. The storm then continued its way up through Nevada and the northern Rockies, bringing continued heavy rain and flooding to the region. Las Vegas declared a state of emergency, while Gov. Gavin Newsom proclaimed a state of emergency as the storm approached. More than 1,000 flights were canceled, and tens of thousands of power customers in California were without power from the storm.

United Wanted Young, Blue-Eyed, Blonde Women to Staff LA Dodgers Flights, Lawsuit Says

United Airlines was sued by two longtime flight attendants who said they were excluded from highly coveted assignments to work on charter flights for the Los Angeles Dodgers baseball team because of their racial background and age. A complaint filed with the Los Angeles County Superior Court alleged that Dawn Todd and Darby Quezada were passed over in favor of flight attendants who were “white, young, thin women who are predominately blond and blue-eyed,” and fit a “certain look” that the Dodgers players liked.

After 189 Bodies Were Found in Colorado Funeral Home, Evidence Suggests Families Received Fake Ashes

A Colorado funeral home where 189 decaying bodies were discovered in October appeared to have fabricated cremation records and may have given families fake ashes, according to information gathered by The Associated Press from customers and crematories. The families that did business with Return to Nature Funeral Home feared their loved ones weren’t cremated at all and instead could be among the yet unidentified corpses authorities discovered after responding to a report of an “abhorrent smell.”

Wind-Driven Hawaii Wildfire Destroying Maui Tourist Town

The Maui wildfires were much read news during the late summer, and continuing through the rest of the year in the aftermath of the deadly and destructive blazes. The fires were fueled by strong winds from Hurricane Dora, and they destroyed homes and businesses, forcing some residents to jump into the ocean to escape the flames and taking the lives of more than 100 people. The heart of Lahaina, the historic town on the Hawaiian island of Maui that burned in the wildfire, reopened in mid-December to residents and business owners holding day passes.

Class Action Lawsuit Against California Cannabis Companies Alleges Lower Than Advertised THC Content

Lawsuits against cannabis companies became more prevalent in 2023. A class action lawsuit against two California companies filed in December alleged they sold products in which the THC content was misrepresented as being higher than it actually is. Law firm Dovel & Luner announced it filed a suit against Ironworks Collective Inc. and Stiiizy LLC on behalf of California consumers who purchased cannabis products with inaccurate THC content labels. The lawsuit alleges that the defendants, who make, sell, and market “Stiiizy” brand cannabis products, overcharged consumers by illegally selling products whose THC content was represented as substantially higher than it actually was.

Washington’s Legal Cannabis Farms Reopen After Pesticide Concerns Halted Operations

Terry Taylor’s marijuana farm in the high desert of north-central Washington state was one of several finally getting back to business over the summer after state regulators halted their operations in April, citing product testing that turned up unacceptable levels of chemicals related to DDT, a synthetic pesticide. The affected growers hadn’t used the pesticide themselves, but they are located on a stretch of former fruit orchards along the Okanogan River where it remains in the soil. The Washington Liquor and Cannabis Board lifted the holds on the businesses. The board said it will increase pesticide testing for cannabis from the area.

$1.5M for California Homeowners Overcharged Under Wildfire Risk Score

Kemper Independence Insurance Co. issued more than $1.5 million in refunds to thousands of California homeowners after the California Department of Insurance found the carrier overcharged policyholders for wildfire risk. At issue were the companies’ use of wildfire risk scores to establish how much policyholders paid for insurance. In 2015, the companies introduced new wildfire surcharges based on the property’s Fireline wildfire risk score. Properties with a higher Fireline score paid higher premiums. The companies reportedly changed the pricing system without the CDI approval, resulting in thousands of policyholders being overcharged for insurance.

California Jury Awards $46M to Paralyzed Jiu-Jitsu Student

A San Diego jury awarded more than $46 million to a man who suffered a catastrophic spinal injury during a beginner jiu-jitsu class five years ago. Jack Greener was enrolled at Del Mar Jiu-Jitsu Club in 2018 when he was pinned to the mat by an instructor who placed his entire bodyweight on Greener’s neck, according to the suit. Greener, who was 23 at the time, underwent multiple surgeries and was hospitalized for months, his lawyers said. Now a quadriplegic, he sought compensation for medical expenses, loss of earnings and emotional distress. Jurors ruled in Greener’s favor after a four-week trial.

Insurers View New Car Sales Rise in California as More Evidence for Rate Filings

After new figures showed car sales in California continued to slowly return to pre-pandemic levels, the state’s auto insurers saw that as another indication the state’s insurance regulator needs to approve more rate filings. The California New Car Dealers Association released its 2022 California Auto Outlook report for the fourth quarter, which also gives a projection for 2023 sales. Sales were still down last year from figures before the pandemic, but the report showed a gradual increase in sales in 2022 culminating in a 13.6% increase in new light vehicle registrations versus the same period in 2021. The association’s report echoed data auto insurance carriers have been reporting to the California Department of Insurance as drivers returned to the road following COVID lockdowns, with reported spikes in crashes, fatalities and claims.

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