Schlitz Brewing, Redux in California

Why, yes!  Schlitz has been gone from Milwaukee for a few decades.  So why do I bring it up?

There were rumors that Schlitz (then owned by Stroh's) would be closing its Milwaukee brewing operations.  That would put a lot of Milwaukee residents on the unemployment line and have serious negative effects on its supply chain--many of which were also in Milwaukee.   

A mouthy Milwaukee alderman who believed that being in office gave him a lot of power, ordered Schlitz to remain open.

Stroh's shut it down a few months later.

So what?

In California, prior to the beginning of the fires:

 ...State Farm non-renewed approximately 1,600 policies in the region in 2024, of approximately 30,000 homeowners and 42,000 apartment policies it dropped statewide, citing rising costs and risks.

“This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations,” the company said in a statement.

“State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws. It is necessary to take these actions now.”...

So what?  That was then.

...Ricardo Lara, commissioner of the state’s Department of Insurance, issued a one-year moratorium on Jan. 10, preventing non-renewals and cancellations for households in and adjacent to the fire sites.

“I am using my moratorium powers ... so people don’t face the added stress of finding new insurance during this horrific event,” he said in a statement. “I am working on all fronts to make sure wildfire victims get the benefits they are entitled to, and they get it as soon as possible.”...

State Farm will comply, of course.  But Every.  Other.  Area.  in California may see State Farm (and lots of others) pull out.  Little Ricardo will be waving his widdle fists, screaming at the sky.........and there will be no insurer there to hear him. 

HT:  Wauck--who also raises the Big Question:  which States will pay for those fires?