LA WILDFIRE - DONATION LINKS:

⁠Red Cross Wildfire Relief Efforts⁠⁠
GoFundMe.org Wildfire Relief Fund⁠
⁠Los Angeles Fire Department Foundation⁠
⁠Salvation Army Wildfire Relief⁠

In this episode of Deal Flow Friday, David Moghavem invites Michael Brodie from Marsh Insurance, along with Max Sharkansky from Trion Properties, to discuss the current state of the commercial and residential insurance market, particularly in light of recent natural disasters such as wildfires and hurricanes. They explore the implications of taxpayer-funded insurance programs, the importance of resilience in property investment, and the evolving philosophy around insurance coverage. The conversation also touches on the future of construction materials and market trends, including predictions for insurance premiums and the challenges faced in the casualty insurance market. The episode concludes with a hopeful outlook for the insurance landscape as it begins to stabilize after years of volatility.

Chapters

00:00 Acknowledgment of Los Angeles Wildfires [Donation Links Available in Show Notes]

04:14 Introduction, Max and Michael

08:09 Understanding Residential Taxpayer-Funded Insurance Programs

11:52 Resilience in Property Investment 

18:17 The Balance of Coverage vs Premium

21:26 Insurable Construction Standards vs Cost of Construction 

24:38 How Catastrophic Residential Losses affect Commercial Insurance Market

30:27 "Park Place & Boardwalk": Top Markets for Insurers? 

33:16 Underwriting Trends in Adjusting Risk Models

36:25 Predictions on Where Insurance Premiums are Going

39:32 Casualty Insurance Trends