Good morning. Welcome to Axios today. It's Tuesday, June 6. I'm Nyla Boudou. Today, the disconnect between workers and employers on menopause. Plus, how do you approach summer reading? We want to hear from you.

But first, climate change risks are making some of the country uninsurable. That's our one big thing.

All-state joint state farm as another major insurer to say recently it's no longer accepting applications for California property insurance, including homes and commercial property.

Concerns are growing and not just in California about the viability of the property insurance industry.

Axios' Andrew Friedman is here to talk about the growing portion of America that's becoming close to uninsurable in part because of climate risks.

Hey, Andrew. Hey there. So let's start with state farm. What did they say about why they're not doing this in California anymore?

So they say they did a number of factors, climate risks with wildfire danger among them. But there's other things going on that are somewhat unique to the California market.

Some of it is due to the supply chain issues and costs of new construction. And there's also state regulations that kind of hold the cost increases down.

So property insurers don't have the freedom to charge a whole bunch more when they're seeing more risk.

But we're also seeing this happen in other states like Florida when it comes to hurricane insurance, Andrew.

Yeah, the three main states that you can point to is kind of the early harbingers of climate related insurance risk is California with the wildfire situation.

Florida with hurricanes as well as flooding and Louisiana for the same reason.

And in Florida, for example, the biggest homeowner insurer is now a state plan.

So a lot of people are questioning whether or not that's a really good long term plan because you might get a major hurricane come along, cause a ton of damage and then it's taxpayers on the hook to replenish that fun.

I mean, I've already heard Andrew of friends in South Florida who have been quoted homeowner insurance premiums of like 20,000 a year.

My question to you is what role does the reinsurance market play in all of this? Cause that's part of the issue here too.

The reinsurance market is basically insurance for insurance companies, even large ones like state farm and all state really don't have sway and what is a global marketplace in the reinsurance market.

So the cost of reinsurance is going up and that makes the insurance companies more apt to raise prices because they're getting squeezed from multiple points on the chain.

So we're maybe seeing worst case scenarios for this in California, Florida and Louisiana, but what about other states?

Folks that I've been talking to in the industry are saying this should really be looked at as a 50 state problem.

Bringing some of these dynamics play out in coastal communities in Virginia, North Carolina, New Jersey, Massachusetts and some other areas where you have significant storm related coastal flooding risks.

But there's also inland flooding issues.

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