Daily California P&C Insurance News

A new California bill, SB 1076, would require insurers to offer and renew coverage for homes meeting wildfire-safety standards starting January 2028, with penalties for noncompliance. Proponents aim to help fire survivors secure insurance after mitigation efforts, while industry groups warn it could drive carriers out of the strained market.[1]

California’s insurance commissioner recently approved a 9% increase in workers’ compensation rates, signaling stress in the sector despite national trends of favorable combined ratios. This reflects rising claims costs digging into insurer profits in the state.[2]

The California FAIR Plan has seen policies surge 146% since September 2022, prompting CDI efforts to expand coverage beyond fire insurance despite ongoing litigation. Recent modernization includes higher commercial limits up to $100 million aggregate and safeguards against catastrophe bankruptcy.[3]

California surplus lines new policy counts have swelled over 500% in recent years due to admitted carriers’ pullback amid worsening wildfires. This shift has prompted FAIR Plan reforms and rate hikes by major insurers like CSAA and Mercury averaging 6.9%.[4]

Commissioner Ricardo Lara approved 6.9% average rate increases for Mercury Insurance and CSAA affecting over 1 million homeowners policies. Critics argue private insurers are holding homeowners ‘hostage’ amid non-renewals and market exits driven by climate risks.[9]