Daily California P&C Insurance News

California home insurance premiums are expected to climb roughly 20% or more by the end of 2025, driven by wildfire losses, higher reinsurance costs, and inflationary rebuilding pressures. Large carriers are seeking rate increases of up to 30% as regulators allow greater use of catastrophe models, signaling continued affordability and capacity challenges for homeowners.

Insurance Commissioner Ricardo Lara ordered insurers to preserve residential property coverage for more than 14,800 policyholders in Mono and Inyo counties after the Pack Fire and a related emergency declaration. The one-year moratorium blocks non-renewals and cancellations regardless of loss, extending California’s wildfire protections while broader market reforms aim to keep carriers writing in high-risk areas.

The California FAIR Plan has upsized its debut Golden Bear Re catastrophe bond to target $750 million of fully collateralized wildfire reinsurance while pursuing lower spread pricing amid strong investor demand. The record-sized deal aims to stabilize the state’s insurer of last resort and ease some of the wildfire risk burden behind homeowner coverage in distressed zones.

New Los Angeles–area wildfires have helped drive global insured natural catastrophe losses in 2025 to about $107 billion, despite the absence of a U.S. hurricane landfall. Analysts note that California’s fire activity continues to be a major contributor to global loss totals, reinforcing reinsurer focus on exposure, pricing, and terms for Golden State property risks.