Reported 3 days ago
California has enacted a law that hinders hedge funds from profiting off wildfire insurance claims by requiring utility companies the option to settle claims on equal terms. This legislation aims to reduce opportunistic behavior in the wake of devastating wildfires and fortifies the state’s wildfire fund amidst increasing risks from natural disasters. Experts suggest that while the move is intended to prevent profiteering, it could also limit market liquidity and the profitability of claims for hedge funds.
Source: YAHOO