Daily Property & Casualty Insurance News – California

Insurance Commissioner Ricardo Lara ordered insurers to maintain residential property coverage for roughly 124,000 homes in six Sierra foothills counties impacted by wildfires. The order, effective for one year, protects policyholders from non-renewals or cancellations following Governor Newsom’s declared emergency.

Eleven major wildfires in early 2025 resulted in $50 billion in P&C insurance claims, depleting nearly half of the industry’s annual catastrophe budget. Insurers are tightening risk selection criteria and revising strategies for high-risk areas.

Commissioner Lara’s new proposal would tighten funding for consumer groups challenging rate hikes, a move drawing criticism from advocates. Public comment is open ahead of a regulatory hearing as debate intensifies over transparency and consumer protections.

New long-term solvency rules proposed by the Department of Insurance would require large insurers to disclose climate risks and risk projections for 30 years. Insurers and advocates are split, with some calling for broader risk mitigation measures and annual updates to climate data.

Recent regulatory changes spearheaded by Commissioner Lara are expected to push home insurance premiums higher across California. Critics raise concerns over the impact on affordability as insurers adapt to evolving catastrophe risks and stricter oversight.