Daily P&C Insurance News

The California Department of Insurance has approved an average 8.2% rate increase for personal auto policies from State Farm, Allstate, and GEICO, citing unprecedented repair costs and supply chain disruptions. Consumer advocates warn the hikes will disproportionately impact middle-income drivers in urban areas.

Homeowners in high-risk wildfire zones face average 15% premium increases as carriers implement new risk modeling following last year’s devastating fire season. The California FAIR Plan is bracing for 25% enrollment growth as traditional carriers continue non-renewals.

Reinsurers are signaling tighter capacity and higher pricing for California property catastrophe covers ahead of the 2027 renewals due to escalating wildfire losses. Domestic carriers may need to increase retentions by 20-30% as global reinsurers pull back from high-exposure U.S. markets.

New legislation requires all insurers using AI in California underwriting to disclose algorithms and provide adverse action explanations to policyholders. The law aims to prevent discrimination while carriers warn of potential 12-18 month compliance delays for complex models.

The CEA will issue $1.2 billion in catastrophe bonds to bolster earthquake coverage capacity amid growing seismic risk concerns. The multi-tranche issuance targets excess-of-loss protection between $1.5B-$12B in industry losses, attracting strong institutional investor interest.