Daily California P&C Insurance News

California regulators approved a 25% average increase in auto insurance premiums for major carriers due to heightened wildfire exposure and repair costs. The rate hike affects over 12 million policyholders starting June 1.

State Farm announced non-renewals for 15,000 additional homeowners policies in high-risk fire zones across Southern California. The move follows $2.5 billion in claims from last year’s wildfires.

Major reinsurance panels serving California P&C markets are quoting 40% higher renewal rates for 2027 amid catastrophe aggregation concerns. Carriers face capacity constraints unless risk mitigation improves significantly.

Lemonade introduced real-time AI underwriting models specifically calibrated for California earthquake exposure using satellite and IoT data. The technology reduces manual reviews by 70% while maintaining actuarial accuracy.

Meteorologists predict California’s 2026 wildfire season could exceed $15 billion in insured losses due to prolonged drought conditions. Insurance Department urges immediate mitigation investments by policyholders.