Daily California P&C Insurance News

Insurance Commissioner Ricardo Lara ordered insurance companies to preserve residential property coverage for over 147,000 policyholders in 29 ZIP codes affected by the Gifford Fire, shielding them from non-renewal or cancellation for one year following Governor Newsom’s emergency declaration. This action provides critical relief to wildfire-impacted communities and supports Commissioner Lara’s Sustainable Insurance Strategy to restore market availability.[1]

SB 1076 by Sen. Sasha Renée Pérez would require insurers to offer and renew coverage for homes meeting wildfire-safety standards starting January 1, 2028, with penalties for noncompliance. The bill addresses concerns from fire survivors denied coverage despite rebuilding to high safety standards, though insurers warn it could exacerbate market challenges.[2]

California Insurance Commissioner Ricardo Lara approved 6.9% rate increases for Mercury Insurance and CSAA, affecting hundreds of thousands of homeowners amid ongoing market challenges. Critics argue these hikes reflect insurers leveraging regulatory changes while retreating from high-risk wildfire areas.[9]

California’s regulatory changes now allow insurers to better incorporate reinsurance costs and forward-looking catastrophe models into homeowner rates, likely leading to short-term increases in high-risk areas. Homeowners investing in wildfire and flood mitigation may gain better coverage options as the market links premiums more closely to risk reduction efforts.[3]

California’s surplus lines market has grown over 500% in new policy counts as admitted carriers contract amid worsening wildfire risks, driving more homeowners to the FAIR Plan. State regulators are pushing FAIR Plan reforms to improve claims handling, expand coverage, and increase transparency for wildfire survivors.[4]