Hello, and welcome to Five Things I'm Dana Taylor, today is Sunday, September 10, 2023.

The historic and deadly wildfires in Hawaii have brought an awareness of insurance risks

to the forefront of homeowner's concerns.

Maui's risk had previously been deemed low, and that it kept premiums imminently affordable.

Now, not so much.

The flood insurance industry faces a similar set of problems as risks in coastal states

continues to skyrocket.

Affordability is now a very serious issue, and without fire or flood insurance, the real

estate market would be paralyzed.

What's the solution?

I'm joined by Ed Bridger, the law professor at Louisiana State University, who specializes

in administrative law, which covers both the federal and commercial insurance industry.

Ed, thanks for joining me.

Pleasure to be here.

So I want to start with the fires in Maui and how the insurance industry is responding

there to date, damages are estimated to be over $3 billion in still rising, home owners

in Lahaina are saying they want to rebuild, how are insurers responding, and will there

be money for people to do that?

Well, the insurers will need to pay the claims on the policies that are in existence.

The real problem with these is, after this disaster is paid off, will they want to stay

in the market, will they withdraw, will rates go up dramatically?

What we've seen in other areas is that the insurers sort of lag the risk.

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