Hedge Funds Targeting Fire Insurance Hit a Wall in California
FacebookXLinkedInEmailLinkGiftExpandHomes destroyed in the Eaton Fire in Altadena in February.Photographer: Kyle Grillot/BloombergFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Natasha WhiteOctober 5, 2025 at 4:00 PM UTCUpdated on October 6, 2025 at 11:01 AM UTCBookmarkSave
Hedge funds speculating on wildfire insurance claims in California were just dealt a legal blow, after the state adopted new legislation designed to stifle such bets.
Under the law, approved last month by California Governor Gavin Newsom, alternative investment managers buying so-called subrogation claims from insurers would see those transactions voided unless the utilities targeted were given the option to settle on the same terms.
Source: Original