Daily California P&C Insurance News

SB 1076 would mandate insurers to offer and renew homeowners coverage for properties meeting state wildfire safety standards starting January 1, 2028, with potential five-year market bans for noncompliance. The bill, prompted by 2025 Eaton fire survivors, allows temporary waivers for high-risk areas but faces industry criticism over forced losses in fire-prone zones.

Sen. Sasha Renée Pérez’s SB 1076 requires coverage for wildfire-resilient homes from 2028, co-sponsored by Eaton Fire Survivors Network and Consumer Watchdog amid growing FAIR Plan reliance. Industry groups warn the mandate could accelerate insurer exits from California’s strained homeowners market.

The California FAIR Plan upsized its second catastrophe bond to $400 million in multi-year wildfire reinsurance protection through Golden Bear Re Series 2026-2, running to February 2029 on an indemnity trigger basis. This adds to $1.15 billion total cat bond protection, marking the first pure wildfire deal of 2026.

2025 Los Angeles wildfires accelerated admitted carriers’ pullback, driving surplus lines growth amid worsening exposures and market pressures across California. Major insurers CSAA and Mercury plan 6.9% homeowners rate hikes for hundreds of thousands of policies starting March and July.

CDI pushes FAIR Plan expansion beyond fire coverage to include theft, liability, water damage, and more for riskiest non-renewed properties. Following 2025 Pacific Palisades and Eaton fire losses, the Plan received assessment approval on February 11, 2025.