Daily P&C Insurance Agent News
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P&C Insurance Daily
Essential news for insurance professionals
Top Stories
Farmers Insurance Eliminates Homeowners Policy Cap in California
December 2025
Farmers Insurance has removed its monthly cap on new homeowners insurance policies in California, signaling a major shift in the state’s constrained insurance market. The move is expected to increase competition, expand coverage options for consumers, and potentially drive premium decreases across the industry.
Insurance Commissioner Proposes Changes to Rate Increase Oversight
October 13, 2025
California Insurance Commissioner Ricardo Lara has proposed stricter funding rules for consumer advocacy groups that challenge insurer rate hikes under the state’s landmark insurance law. The controversial proposal has drawn criticism from consumer watchdog organizations concerned about their ability to contest premium increases.
The Uninsurable Future: Climate Threat to Property Insurance
2025
Following devastating January 2025 wildfires that resulted in $40 billion in insured losses, California’s FAIR Plan received a $1 billion bailout with future shortfalls to be covered by surcharges on all policyholders. The situation highlights ongoing tensions between regulatory reform and the industry’s ability to maintain adequate reserves for catastrophic events.
California FAIR Plan Upsizes Catastrophe Bond to $350M-$500M
2025
The California FAIR Plan has increased its target for its debut catastrophe bond issuance from $250 million to between $350 million and $500 million in wildfire reinsurance protection. The expanded Golden Bear Re cat bond demonstrates the insurer of last resort’s strategy to strengthen its financial resilience against future catastrophic losses.
2026 Home Insurance Rates: California’s Market Challenges and Regulatory Shifts
2025
California home insurance premiums are projected to rise approximately 20% or more through the end of 2025, driven by surging reinsurance costs and new regulatory rules allowing insurers to better reflect catastrophe models in rates. While these changes may enable more carriers to return to the market, they are expected to result in higher premiums in high-risk areas in the near term.
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