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State regulators identify wildfire neighborhoods targeted for insurance relief

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State regulators identify wildfire neighborhoods targeted for insurance relief

California regulators Wednesday disclosed which areas of the state insurers will have to cover if they want to take advantage of financial incentives intended to resolve the homeowners’ insurance crisis.

In Los Angeles County, those areas include ZIP Codes in the Santa Monica Mountains, the San Gabriel Mountains and parts of the Santa Clarita Valley, according to draft regulations released by the Department of Insurance.

Last fall, amid the pullback of insurers from wildfire neighborhoods, state Insurance Commissioner Ricardo Lara announced his Sustainable Insurance Strategy. It was the biggest overhaul of industry regulations since the 1988 passage of Proposition 103, which gave an elected insurance commissioner the authority to review and reject requests for rate hikes by insurers offering homeowners, auto and other lines of coverage. The new regulations are expected to be in place by the end of the year.

“We are well on our way to enacting the state’s largest insurance reform,” Lara said Wednesday. “We are being driven by data and by the meetings we have held with thousands of Californians across the state.”

Elements of the reform are predicated on a deal he reached with the industry that would allow insurers to include in their premiums the cost of reinsurance they buy to protect themselves from disasters — and to use computer models that project future claims risks, a concern due to massive wildfires caused by drought and climate change. Currently, historical claims data are used in preparing rate hike requests.

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That agreement requires large insurers to provide coverage in wildfire risk areas that is equivalent to 85% of their statewide market share. That means, theoretically, if an insurer has a 20% market share statewide, it would have to insure 17 out of 100 homes in such neighborhoods.

Smaller insurers are also targeted by the regulations, but instead of having to increase market share in distressed areas by the 85% metric, they would have to increase the number of policies they write by 5%. All companies also would have to increase their commercial policies in such areas by 5%.

The regulations released Wednesday detail how that goal would be achieved, and take a three-part “hybrid” approach that aims to maximize coverage and account for the state’s geographic diversity that includes mountainous rural areas, coastal zones and suburban neighborhoods.

One set of regulations would apply the 85% threshold to entire counties if 20% or more of properties are in “high” risk areas, as defined by maps created by the Department of Forestry and Fire Protection.

Another set would apply the threshold to “high” and “very high” fire-risk ZIP Codes if 15% or more of policyholders are being covered by the state FAIR Plan, an insurer of last resort that offers policies with minimum benefits. ZIP Codes would also be included if it is found that coverage is unaffordable based on a median-income or premium-cost calculation. The idea is to protect those with limited or fixed incomes.

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The regulations also aim to capture high fire-risk neighborhoods sprinkled in nearly every county that are not captured by the other rules.

The department plans to review coverage by insurers that seek to include the cost of reinsurance and use the new computer models to ensure they are writing insurance in distressed areas. Those that are not could face rate reductions and having to rebate premiums.

“Insurance companies need to commit to writing more policies, and my department will need to verify those commitments to hold companies accountable,” Lara said.

Carmen Balber, executive director of Consumer Watchdog, a Los Angeles consumer advocacy group, said in a statement that the draft regulations give insurers too much time to meet the coverage targets and provide affordable insurance, while giving regulators too much leeway to provide exceptions.

“Insurance Commissioner Lara’s plan gives insurance companies two years to comply but they can start to charge more immediately. After two years, insurance companies can say they can’t meet their goals and the commissioner can just move the goal posts. This was the one consumer benefit in Lara’s proposal but the exceptions swallow the rule,” she said.

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Rex Frazier, president of the Personal Insurance Federation of California, a trade group of property and casualty insurers, welcomed the move.

“We are encouraged to see continued progress on the commissioner’s Sustainable Insurance Strategy. This proposal is complex, with many trade-offs, including insurer commitments that no other state requires. However, we remain committed to working with all stakeholders to increase insurance availability and restore the health of the insurance market,” he said in written remarks.

The department issued a state map and a list of ZIP Codes affected by the proposed regulations. It also scheduled a June 26 hearing to take testimony from insurers, consumer advocates, policyholders and others.

The ZIP Codes include neighborhoods in Malibu, Beverly Hills, Topanga, Bel-Air, Beverly Glen, Duarte, Castaic and Catalina Island.

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The Homesteading Mother of 6 Taking On Big Tech

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The Homesteading Mother of 6 Taking On Big Tech

Everyone will know more, he told me, when Quantica signs a contract with a tech company to use the facility. That announcement could come by the end of the year.

Besides, Mr. Peterson said, much of the apprehension over the data center comes from people who are afraid of A.I. more broadly, as if “Big Brother is going to take over,” he said.

Those people, he added, “have no role in this conversation.”

What Mr. Peterson could tell me now, he said, was that the project would have minimal impact on the land and the people who live nearby. And residents wouldn’t have to pay a thing for it. He offered no guarantees, but said the project would bring its own power — at least some of it from solar and natural gas.

Despite what opponents have been saying, and despite the information gleaned from data centers around the world, Mr. Peterson said the Broadview site would need “not that terribly much” water.

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It will bring jobs, he said. Thousands of temporary workers could descend on Broadview for the construction. The number of permanent jobs would be 30, 40, 100 — he doesn’t know for sure. But he described them as good-paying jobs that would not require specialized training or a college education. Jobs like janitors, maintenance workers or security guards.

He likened it to “being a miner, but not having to grab a drill.” Generations of families could stay in Broadview because people would not have to move to make a living, as many are doing now. They could say, “Oh my gosh, I could push a broom and come home to my home in Lavina that I love — and my kids can do that?”

For anyone who doesn’t like the idea of living next to a data center, he added, “there’s probably a county up the road that doesn’t have one.”

He said the eventual deal would include a “community benefits package,” which could help Broadview pay for things like its problematic wastewater lagoon. The Montana Department of Environmental Quality issued the town a violation in March for longstanding issues at the site, demanding compliance. Remediation could cost millions.

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Can Disney recapture the Force with ‘The Mandalorian and Grogu’?

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Can Disney recapture the Force with ‘The Mandalorian and Grogu’?

After a 6½-year hiatus from theaters, “Star Wars” returns to the big screen this weekend with “The Mandalorian and Grogu.”

This time around, however, the franchise faces a much different universe than it did in 2019 when the last film came out. For one, theatrical attendance has fallen dramatically since “Star Wars: Episode IX — The Rise of Skywalker” grossed more than $1 billion worldwide in the pre-pandemic days.

Then, there’s Walt Disney Co.-owned Lucasfilm’s own trajectory. In the last few years, new “Star Wars” stories have come only via streaming series on Disney+. And since the service debuted in 2019, the San Francisco-based studio pumped out 13 shows, including “The Mandalorian,” which inspired the film, though others received mixed reviews.

Lucasfilm is also under new leadership, as veterans Dave Filoni and Lynwen Brennan are now co-presidents after George Lucas’ handpicked successor, Kathleen Kennedy, stepped down this year.

It all adds up to a crucial question: Can the nearly 50-year-old franchise still delight its longtime fans, while bringing in new viewers to help it endure?

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“There’s a lot riding on this,” said Jeff Bock, box-office analyst at entertainment data and research firm Exhibitor Relations. “It’s close to a make-or-break strategic test … just to see if the modern ‘Star Wars’ is still viable theatrically.”

“The Mandalorian and Grogu” is expected to gross around $80 million in the U.S. and Canada for the four-day Memorial Day weekend, according to studio estimates.

That would rank among some of the top openings this year, including Amazon MGM Studios’ “Project Hail Mary” ($80.5 million) and Disney-owned 20th Century Studios’ “The Devil Wears Prada 2” ($76.7 million). Another big sci-fi installment, Warner Bros. Pictures and Legendary Entertainment’s “Dune: Part Two,” opened to $82.5 million in 2024.

But for a “Star Wars” movie, that’s considered low.

2019’s “The Rise of Skywalker,” for example, opened to $177 million, with 2015’s “The Force Awakens” and 2017’s “The Last Jedi” each debuting to more than $200 million. The $84-million opening for 2018’s “Solo: A Star Wars Story” was considered a disappointment at the box office.

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To be sure, theatrical expectations have changed dramatically since the pandemic, which altered moviegoers’ habits and trained many to wait and watch films at home.

“The Mandalorian and Grogu” also stems from a streaming series and does not continue the story line of the traditional “Star Wars” saga films that follow the Skywalker family. (The movie’s reported production budget of $166 million also makes it cheaper than its predecessors.)

And for Disney, box-office revenue will not be the only indicator of this film’s success.

Director Jon Favreau, left, and Pedro Pascal on the set of Lucasfilm’s “Star Wars: The Mandalorian and Grogu.”

(Nicola Goode / Lucasfilm Ltd. / Disney via Associated Press)

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The company expects the movie will boost other parts of its business, including streaming, its gaming collaboration with Fortnite and the all-important theme parks, where the film’s main characters appear at the Star Wars: Galaxy’s Edge-themed land, and the Millennium Falcon: Smugglers Run ride has been overlaid with a “Mandalorian and Grogu” storyline.

Then of course, there’s merchandise. (Famously, fans rushed to buy items of Grogu — known colloquially as Baby Yoda — after “The Mandalorian” show debuted in 2019, though products didn’t arrive for months. Once available, 13 million Grogu toys were sold in the two years after they were released, Disney has said.)

“It’s not using cinema in the way ‘Star Wars’ used cinema before,” said Carmelo Esterrich, a professor at the school of communication and culture at Columbia College Chicago, who has written about how “Star Wars” is a reflection of American culture. “It’s using the franchise of television and the power machine of Grogu to bring it to the big screen.”

Grogu’s appeal highlights an important goal for the franchise: expanding beyond its original fan base to new audiences. Although “The Mandalorian and Grogu” builds on storylines from the streaming show, the film was designed to be accessible to viewers who had never watched it.

“I hope that our excitement and joy and love of ‘Star Wars’ translates to a new generation of fans seeing it, experiencing it the way we did for a long time,” director Jon Favreau told an audience in April at the CinemaCon trade conference during a presentation about Disney’s film lineup.

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Early ticket sale tracking indicated strong interest from older men, who have historically been the core audience for “Star Wars” films. But after an extensive marketing campaign, Disney’s studio estimates now show audiences are younger, with more families and women represented.

To date, “The Mandalorian” is still the most popular Disney+ series. The show, which has run for three seasons, has won 15 Emmys, including for sound mixing and special effects. The critical and fan response, as well as the opportunity to explore new characters’ backstories, led Lucasfilm to choose this show to spin off into a movie, according to sources close to the studio.

Since the launch of the platform in November 2019, “The Mandalorian” and other “Star Wars” titles such as “The Acolyte” and the second season of “Andor” have seen relatively high audience demand, according to an analysis by Parrot Analytics, a firm that tracks streaming data. Despite several big hits, the average demand for live-action television series set in the galaxy far, far away have shown a slight downward trend over time.

In contrast, demand for live-action series from Disney-owned Marvel Studios has held stable since the premiere of its first streaming show, “WandaVision.” Though Marvel’s television offerings outnumber those of “Star Wars,” overall audience interest in the superhero shows is less than the biggest “Star Wars” hits and more comparable to some of Lucasfilm’s lesser-hyped titles, including “Skeleton Crew,” according to Parrot Analytics.

In the end, “The Mandalorian and Grogu” needs to keep audience interest in “Star Wars” on the big screen. Next year, Lucasfilm will release “Star Wars: Starfighter,” a film starring Ryan Gosling and directed by Shawn Levy of “Deadpool & Wolverine” that has generated great interest, particularly given Gosling’s turn in “Project Hail Mary.”

“This is a safe reentry point,” Bock of Exhibitor Relations said of “The Mandalorian” movie. “If Grogu can bring in the families and if ‘The Mandalorian’ continues to bring in the audiences of the old movies, maybe they can bridge these generations like classic ‘Star Wars’ once did.”

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Oil Prices Fall Sharply on News of Possible Iran Deal

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Oil Prices Fall Sharply on News of Possible Iran Deal

Oil prices fell sharply on Monday after American officials said the United States and Iran had agreed in principle to a peace deal that would reopen the Strait of Hormuz, a vital trading route for oil and natural gas that normally carries up to one-fifth of the world’s oil supply. But final approval of a deal could take a while.

President Trump vowed on Monday that either a deal would be “great and meaningful” or “there will be no deal.” Esmaeil Baghaei, the Iranian foreign ministry spokesman, said on Monday that “no one can claim that the signing of an agreement is imminent,” according to Iran’s state broadcaster. Iran’s top negotiators, led by Mohammad Bagher Ghalibaf, the speaker of Parliament, arrived in Qatar on Monday for further talks, Iranian state media said.

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