Daily California P&C Insurance News

A new California bill, SB 1076, requires insurers to offer and renew coverage for homes meeting wildfire-safety standards starting January 2028, with penalties including a five-year ban from auto and home markets for noncompliance. Survivors of the 2025 Eaton fire and advocates support it amid insurer pullbacks, though industry groups warn it could exacerbate market exits.[1]

A suite of new California laws effective January 1 promotes wildfire safety and consumer protections in property insurance through increased transparency and oversight. These measures address rising costs and availability issues driven by climate-accelerated disasters.[4]

2025 Los Angeles wildfires accelerated a shift from admitted carriers to surplus lines and the FAIR Plan due to regulatory hurdles like Proposition 103 and wildfire risks. Recent reforms fast-track rates, enable advanced modeling, and incentivize coverage in high-risk areas, with two major insurers planning 6.9% hikes.[5]

Southern California faces continued home insurance rate pressure from surging reinsurance costs and new rules allowing forward-looking catastrophe models to pass risks into premiums. High-risk wildfire and flood areas may see tighter capacity, while mitigation efforts could improve access long-term.[2]

California’s efforts to alter property insurance risk, rates, and payouts through legislation are criticized as insufficient to resolve deep market challenges. The piece argues such measures fail to address core equations driving insurer exits and FAIR Plan growth.[3]