Daily P&C Insurance News

California’s Department of Insurance has greenlit a landmark $2.5 billion reinsurance agreement aimed at bolstering carrier capacity amid escalating wildfire risks. The deal, involving multiple global reinsurers, is expected to stabilize premiums and improve market availability in high-risk zones through 2028.

California insurers are projecting a 12% average auto premium hike for 2026, driven by rising repair costs and higher claim frequency revealed through widespread telematics adoption. Regulators are reviewing the proposed increases amid consumer pushback and competitive market pressures.

State Farm has ceased writing new homeowners policies in three Northern California counties, citing unsustainable wildfire and climate risks that render properties effectively uninsurable. The move impacts 45,000 policyholders who must now seek coverage through the state FAIR Plan or alternative markets.

New California legislation requires all P&C insurers using AI in underwriting to provide policyholders with clear explanations of automated decisions by 2027. The rules aim to prevent discrimination while promoting innovation, with hefty fines for non-compliant carriers.

California’s multi-agency workers’ compensation fraud task force announced 150 arrests and $45 million in recovered funds from its 2026 enforcement operations. The crackdown targeted sophisticated doctor-pharmacy-mill networks, significantly reducing fraudulent claim payouts statewide.