Daily P&C Insurance News

The California Department of Insurance has approved rate hikes for several major auto insurers to address escalating repair costs and liability claims. Industry analysts predict this could impact consumer premiums across the state by mid-2026.

State Farm, Allstate, and Farmers have announced non-renewals for thousands of policies in wildfire-prone areas due to unsustainable losses. The move is forcing homeowners into the FAIR Plan, straining California’s last-resort insurance market.

Global reinsurers are imposing steep premium hikes on California P&C carriers following $12B in 2025 wildfire claims. This hardening market could force primary insurers to raise retail rates or reduce coverage capacity.

New legislation requires insurers to disclose AI usage in underwriting and provide consumers with explainable denial reasons. The law aims to prevent discrimination while allowing InsurTech innovation in the nation’s largest insurance market.

AM Best reports that revised seismic modeling has significantly raised expected losses for a major Bay Area earthquake. California insurers may need to boost catastrophe reserves ahead of the 2027 renewal season.