Daily P&C Insurance Agent News
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California Property & Casualty Daily
Curated news for insurance agents and P&C professionals focused on California market developments.
Commissioner Lara Orders Insurers to Preserve Coverage for 124,000 Wildfire-Exposed Homes
Insurance Commissioner Ricardo Lara ordered insurers to maintain residential property coverage for approximately 124,000 policyholders in 39 ZIP codes affected by the TCU September Complex Fire for one year after the governor’s emergency declaration.[1] The mandatory non-renewal moratorium is part of California’s broader Sustainable Insurance Strategy aimed at stabilizing coverage options in wildfire-prone regions.[1]
Farmers Insurance Eliminates Cap on New California Homeowners Policies
Farmers Insurance announced it will remove its cap on the number of new homeowners policies in California, reversing a prior limit of 9,500 new policies per month.[2] The carrier is also targeting “wildfire-distressed” areas with a new rating plan aligned with the state’s Sustainable Insurance Strategy, potentially pressuring competitors to expand capacity.[2]
California FAIR Plan Returns for $750 Million Golden Bear Re Wildfire Cat Bond
The California FAIR Plan is again sponsoring the Golden Bear Re wildfire catastrophe bond, seeking $750 million of capital markets-backed reinsurance protection with reduced spreads compared to its prior deal.[8] The transaction is designed to strengthen the FAIR Plan’s ability to absorb severe wildfire losses while potentially lowering its cost of risk transfer.[8]
Lara Proposes Controversial Changes to California’s Landmark Insurance Law
Insurance Commissioner Ricardo Lara has proposed tightening how consumer advocacy groups are funded when they challenge insurer rate filings under Proposition 103, drawing criticism from watchdogs who view the move as “revenge.”[4] Supporters argue the changes could streamline the rate review process, while opponents warn it may weaken consumer leverage over rate increases.[4]
Critics Say New California Insurance Rules Will Drive Home Insurance Costs Higher
CalMatters reports that recent regulatory changes championed by Commissioner Lara are expected to raise home insurance costs in California, even as they aim to lure carriers back into wildfire-exposed markets.[6] Consumer advocates warn that shifting to more forward-looking catastrophe modeling and allowing broader reinsurance cost pass-throughs could accelerate premium increases for homeowners.[6]
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