Daily P&C Insurance News
California Edition

California regulators approved a 15% average increase in auto insurance premiums for major carriers due to escalating repair costs and claims frequency. Industry experts warn this could strain consumers already facing high living expenses in the state.

Three major home insurers announced they will stop writing new policies in California’s wildfire-prone regions starting Q3 2026. The decision follows unprecedented losses from recent fire seasons and regulatory hurdles to rate adequacy.

Global reinsurers are imposing 25-40% rate hikes on California P&C carriers for 2027 renewals due to catastrophe exposure. This hardening market threatens smaller insurers’ ability to maintain surplus lines capacity in earthquake and wildfire zones.

California’s Department of Insurance issued new rules requiring carriers to disclose AI algorithms used in underwriting and pricing. The regulations aim to prevent discrimination while allowing InsurTech innovation in the competitive P&C market.

State regulators greenlit a $2.1 billion assessment on policyholders to stabilize the California FAIR Plan amid 450% growth in high-risk policies. Carriers warn the surcharge could drive premiums up another 8-12% across voluntary markets.