Profits, thin as they are, will move rapidly into negative territory. Punitive damages will deplete reserves. Insurers will quickly question why they are writing insurance in California. Some will escape. Those who remain will either adopt a program requiring excellence in claims handling from every member of their claims staff, or fail.
Insurance is a business.
It must change if it is to survive. It must rethink the firing of experienced claims staff and reductions in training to save expense. An insurer must understand that, without excellence in claims handling, it cannot adequately fulfill the promises it makes to its insureds and the Fair Claims Practices Act when dealing with claimants. The insurer must work intelligently and with vigor to create a professional claims department. They are all competent investigators.