Description
Former San Francisco Supervisor Jane Kim is running to be California’s insurance commissioner on the idea that it can. Many experts have reservations, but agree that more needs to be done to reduce insurance costs.
Kim’s proposal to create a public, natural disaster insurance program for all is the boldest out-of-the-box idea in the race to become California’s next insurance commissioner.
The consumer advocate and attorney proposed a “guaranteed disaster for all insurance program that is publicly run and nonprofit.”
“The state would collect some of the premiums that you’re already paying to this industry,” she said. “We would invest those dollars in the market, and then we would use excess capital to actually invest in driving down risk, meaning we would invest in fireproofing and floodproofing communities.”
Kim has pointed to New Zealand and France’s arrangements as potential models. In these countries, the government and private companies share risk in the insurance market. She said she wants to see California’s insurance dollars at work to control the state’s insurance costs.
Could a similar program work here? How would it?
For information head to kqed.org/news and for details about the insurance commissioner race, head to kqed.org/voterguide
✍️: Danielle Venton
📹: Sarah Mohamad
🎬: Darren Tu