Daily Property & Casualty Insurance News

California Edition

California Headlines

Home Insurance

California home insurance premiums projected to rise 20% or more by end of 2025

California home insurance premiums are projected to rise by 20% or more by end of 2025 due to reinsurance costs, wildfire losses, and recent wet weather increasing flood and landslide risks. Large carriers have filed for significant rate hikes up to 30% amid regulatory changes allowing better alignment with catastrophe models.

Wildfire / Regulation

Commissioner Lara protects thousands from non-renewals following Pack Fire

Insurance Commissioner Ricardo Lara ordered insurers to preserve coverage for over 14,800 policyholders in Mono and Inyo counties affected by the Pack Fire. The moratorium shields residents from non-renewals or cancellations for one year regardless of loss, protecting Sierra foothill communities.

Reinsurance / Catastrophe Bond

California FAIR Plan secures $750m Golden Bear Re wildfire catastrophe bond

The California FAIR Plan priced its debut $750 million Golden Bear Re catastrophe bond, the largest wildfire cat bond ever, providing reinsurance for wildfire losses over three years. Strong investor demand allowed pricing at the bottom of guidance, easing burden on the last-resort insurer for high-risk properties.

Regulation / Rate Filings

Insurance Commissioner proposes changes to Proposition 103 funding rules

Commissioner Ricardo Lara proposed stricter funding rules for consumer groups challenging insurer rate hikes under Proposition 103, with a hearing set for November 20. Industry groups support the changes as standard practice while critics warn of weakened oversight on home and auto rate increases.

Catastrophe / Wildfire Losses

L.A. fires push insurers’ 2025 disaster losses to $107 billion

Los Angeles wildfires have driven global insured catastrophe losses to surpass $107 billion in 2025, despite no U.S. hurricane landfalls. California wildfires, including January events causing $40 billion in losses, continue to strain the property and casualty market.