Daily Property & Casualty Insurance News — California Focus

Why California’s Homeowners Insurance Market Collapsed — And How to Fix It

Published: May 12, 2025

This analysis explains how wildfire risk, rising claims costs, and regulatory price controls pushed major carriers to stop writing or renewing homeowners policies in California.[1] It also details the growing exposure of the FAIR Plan and how recent rule changes could translate its multi‑billion‑dollar Los Angeles wildfire losses into surcharges and higher premiums statewide.[1]

California Insurance Crisis: List of Carriers That Have Fled or Reduced Coverage in the State

Published: January 2024

This report catalogs the homeowners and property insurers that have exited California, halted new business, or significantly reduced their exposure as losses and regulatory pressures have mounted.[8] It underscores how carrier retrenchment is shrinking consumer options and intensifying the state’s broader insurance affordability and availability challenges.[8]

FEMA Frees $15.4 Million for Flood, Earthquake and Wildfire Projects in California

Published: 2025 (California catastrophe mitigation funding)

FEMA has approved $15.4 million for California projects aimed at reducing losses from floods, earthquakes, and wildfires.[3] The funding supports mitigation initiatives that can help stabilize future catastrophe claims experience and improve the long‑term insurability of high‑risk communities.[3]

Reinsurance Expected to Be Available to Companies on the Ground in California, Says Incoming USAA CEO

Published: January 9, 2025

In an interview, USAA’s incoming CEO notes that reinsurance capacity is expected to remain available for carriers operating in California despite catastrophe pressures.[7] The discussion highlights how global reinsurers are reassessing wildfire and earthquake risk but continue to support primary insurers’ efforts to stay in the market.[7]

Five Property Insurers Return to California Amid New Reforms

Published: 2024

This segment reports that five property insurance companies that previously left California have re‑entered the market following regulatory reforms.[9] The return of these carriers signals cautious optimism that recent policy changes may begin to rebuild capacity and choices for homeowners seeking coverage in high‑risk areas.[9]