Why did Geico shut down all of their offices in California, all on the same day? What do they know that we don't know, yet?

amdpowered

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“ According to the Chronicle, insurance trade publications attributed Geico’s decision to pull out of California to an inability, under Sacramento’s regulation, to increase insurance rates to keep up with inflation among other market pressures.”

Which is from the article. Unless I’m missing something.
 

Smilingreen

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“ According to the Chronicle, insurance trade publications attributed Geico’s decision to pull out of California to an inability, under Sacramento’s regulation, to increase insurance rates to keep up with inflation among other market pressures.”

Which is from the article. Unless I’m missing something.
Why is a insurance company worried about current inflation rates? They already jacked the rates through the roof before the current inflation ever hit......have you ever seen some of these insurance companies mega corporate headquarters campuses??
 

c hris527

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WOW, They see the writing on the wall, Who would want to sell Insurance now in that state, I have a feeling that there will be a BIG wagon train moving east and south, kinda like a reverse gold rush. Can't blame them wanting to move to business friendly states and or safer neighborhoods. I was In Springfield Ma, a few weeks ago, they have a armed cop in the CVS drugstore all the time, VERY sad watching this decline.
 

Timokreon

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I would imagine selling insurance in a state with quite a few forest fires, earthquakes, droughts, influx of illegals, drug problems, crime problems...yeah. Their analysts are obviously thinking the risks are greater than the rewards.
Basically watch what companies like Berkshire Hathaway are doing to see what's coming. Mr Buffet is a VERY smart person.
 
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