The Daily Delegate

By Sullivan Turney

Forum Media

As our world continues to change and natural disasters grow more and more frequent it has become harder and harder for those most at risk to insure themselves against natural disasters and emergencies. Thankfully a new Bill would incentivise companies to offer people in these areas more reasonable policies with potential for tax reductions in exchange. This Bill is being pushed through Forum in Sacramento by the Disasters and Emergencies Committee who believe this Bill could help change the lives of many Californians living in high risk areas both by alleviating a large financial burden and making some high risk areas more accessible. Additionally this Bill would also change how insurance in California works for years to come as it will completely rework and update our taxation system for insurance firms.

This Bill’s goal is to encourage insurance companies to give more reasonable policies to those Californians living in areas quantified as high risk by FEMA (Federal Emergency Management Agency).  The Bill will accomplish this by offering tax breaks to those insurance companies who would reduce the standing rate on policies in these regions. The committee would be willing to reduce the tax rate on insurance companies up to 5% depending on what percentage of a company’s policies are in a high danger area.  In order to execute the policy the committee has also decided to raise tax rates on insurance companies 5% essentially protecting government income from insurance companies, while allowing establishments to return their gross profit income tax to its current level. 

Some have questioned this Bill stating that it may encourage Californians to continue living in unsafe environments by making it more sustainable. The Disasters and Emergencies Committee has responded to this criticism calmly re-affirming its belief that Californians should have the freedom to choose their home themselves, instead of being turned away from a location because of insurance rates. Despite this criticism from a small minority of California natives the Bill has to this point received almost universal support as Forum members have seen the continued strife inflicted by high insurance rates coupled with an increasing number of natural disasters and emergencies across the state.     

As this Bill continues to advance through    Committee and Forum here in Sacramento it will likely continue to change and adapt but the potential this Bill has to change the insurance industry is undeniable as if it does pass it is likely to set a precedent not only at the state level but potentially on the national stage.