Daily California P&C Insurance News

Auto insurance rates in California are surging due to increased claims costs, inflation, and regulatory pressures on insurers. Drivers face significant premium hikes as carriers adjust to higher repair expenses and litigation trends.

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A new California bill (SB 1076) would require insurers to offer coverage to homeowners meeting wildfire safety standards starting in 2028, with penalties for noncompliance. Industry groups warn the mandate could exacerbate the state’s insurance crisis by forcing carriers out of high-risk markets.

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California’s insurance commissioner approved a 9% increase in workers’ compensation rates amid rising claims costs eroding insurer profits. This contrasts with national trends of favorable combined ratios in the sector.

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The California FAIR Plan, serving as the property insurance safety net, has seen policies surge 146% since 2022 amid market withdrawals by private insurers. Regulators are pushing expansions beyond fire coverage, sparking litigation over commissioner authority.

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2025 Los Angeles wildfires accelerated a shift from admitted to surplus lines markets and the FAIR Plan due to admitted carrier pullbacks. State regulators are pursuing FAIR Plan reforms to improve claims handling and coverage for wildfire survivors.

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