Senate Hopeful Pushes Insurance Revamp During California ‘Gouging’
- Schiff says more action is needed as coverage costs increase
- Industry opposes his proposal, citing risk of moral hazard
Adam Schiff’s attention to insurance underscores the mounting frustration in California over the rising cost and reduced availability of homeowners’ policies.
Photographer: Al Drago/BloombergThis article is for subscribers only.
US Representative Adam Schiff, a California Democrat who’s running for the Senate, is vowing to take another shot at reining in soaring home insurance rates that he says are “gouging” his constituents.
To do so, Schiff is casting a spotlight on an obscure corner of the business: reinsurance, an area in which insurers seek to transfer part of their risk to other companies. He says a proposal he first introduced in January — a measure that’s opposed by industry heavyweights — would provide a cheaper alternative.