Daily California P&C Insurance News

Key developments impacting Property & Casualty insurance agents and the industry

Wildfire Protection

California Insurance Commissioner Ricardo Lara ordered insurers to preserve coverage for over 14,800 policyholders in areas affected by the Pack Fire, shielding them from non-renewals or cancellations for one year following Governor Newsom’s emergency declaration. This action builds on Lara’s Sustainable Insurance Strategy and prior laws protecting millions of homeowners from wildfire-related insurance disruptions.

FAIR Plan Reinsurance

The California FAIR Plan Association priced its debut Golden Bear Re catastrophe bond at $750 million, providing fully collateralized reinsurance protection against California wildfire losses on an indemnity trigger basis through 2028. Strong investor demand allowed the last-resort insurer to secure favorable pricing at the bottom of guidance, easing pressure on the state’s stressed homeowners market.

Catastrophe Losses

Insured losses from global natural catastrophes exceeded $100 billion in 2025 despite no U.S. hurricane landfalls, with Los Angeles-area fires contributing significantly to the tally. Swiss Re’s U.S. P&C CEO emphasized that such elevated catastrophe losses represent the new baseline, underscoring the need for enhanced community resilience and adaptation investments.

Home Insurance Rates

California home insurance premiums are projected to rise 20% or more from 2023 through end-2025 due to wildfire losses, inflation, and reinsurance costs. Southern California’s unusually wet November is raising new flood and mudslide concerns that could further impact reinsurer pricing and homeowners’ coverage availability into 2026.

Regulatory Changes

Commissioner Ricardo Lara proposed stricter funding rules for consumer groups intervening in insurer rate cases under Proposition 103, drawing criticism from Consumer Watchdog for potentially weakening checks on home and auto rate hikes. Industry groups view the revisions as routine updates amid ongoing debates over California’s insurance regulatory framework.