Daily California P&C Insurance News

Insurance Commissioner Ricardo Lara ordered insurance companies to preserve residential property insurance coverage for more than 14,800 policyholders affected by the Pack Fire after Governor Newsom’s emergency declaration on December 9. The one-year moratorium shields homeowners within the wildfire perimeters or adjoining ZIP codes from non-renewal or cancellation regardless of whether they suffered a loss.[1]

California home insurance premiums are projected to climb roughly 20% or more between 2023 and the end of 2025, driven by wildfire losses, inflation, and higher reinsurance costs. Unusually wet weather and rising flood and mudslide concerns in Southern California could further influence reinsurer pricing and homeowners’ coverage availability heading into 2026.[2]

Rule 144A property catastrophe bond issuance reached about $20.7 billion year-to-date in 2025, boosted by the California FAIR Plan’s $750 million Golden Bear Re wildfire cat bond. The deal represents the largest wildfire cat bond ever placed, highlighting strong investor appetite for collateralized reinsurance capacity tied to California wildfire risk.[2]

Parts of the general casualty market are softening, but excess liability—particularly above commercial auto—remains challenging as carriers push for higher attachment points. Underwriters increasingly seek limits in the $5–$7 million range above primary policies, creating friction where many auto carriers still work with $1–$2 million layers.[6]

Insured losses from global natural catastrophes surpassed the $100-billion mark in 2025, even without U.S. hurricane landfalls, driven by Los Angeles fires. Swiss Re notes that elevated natural catastrophe losses are now the new baseline, emphasizing the need for resilience and adaptation investments.[5]