Daily P&C Insurance News

California’s Department of Insurance has approved an average 8.5% rate hike for personal auto policies from three major carriers, citing escalating vehicle repair costs and supply chain disruptions. The approval affects over 2 million policyholders and represents the second increase in 2026.

State Farm has significantly reduced new homeowners policy writings in California’s coastal and wildfire-prone areas, following similar moves by other major carriers. The decision impacts thousands of prospective customers seeking coverage in high-risk zones.

Major reinsurance firms are seeking 25-30% premium increases for California property catastrophe coverage at the upcoming renewals. The hardening market reflects $15 billion in recent wildfire losses and increased exposure concentrations.

New California legislation requires insurers to disclose AI usage in underwriting decisions and provide explanations for automated denials. The law aims to protect consumers from opaque algorithmic discrimination in property and casualty lines.

The CEA has increased its earthquake insurance capacity by $2 billion through innovative parametric reinsurance structures. The expansion addresses growing homeowner demand amid rising seismic risk awareness.