Daily California P&C Insurance News

Insurance Commissioner Ricardo Lara ordered insurers to preserve residential property coverage for 124,000 policyholders in 39 ZIP codes affected by the TCU September Complex Fire in Calaveras, Tuolumne, San Joaquin, Stanislaus, Mariposa, and Merced counties. The one-year moratorium, effective from Governor Newsom’s emergency declaration, blocks non-renewals and cancellations regardless of property loss.[1]

California home insurance premiums are expected to increase by about 20% or more by the end of 2025 due to wildfire losses, higher reinsurance costs, and inflationary rebuilding pressures. Large carriers are seeking rate hikes up to 30% as regulators permit greater use of catastrophe models amid ongoing affordability challenges.[2]

Insurance Commissioner Ricardo Lara issued an order requiring insurers to maintain residential property coverage for over 14,800 policyholders in Mono and Inyo counties impacted by the Pack Fire. This one-year protection from non-renewals and cancellations supports California’s wildfire safeguards while market reforms encourage carriers to remain in high-risk areas.[2]

The California FAIR Plan expanded its Golden Bear Re catastrophe bond to $750 million for fully collateralized wildfire reinsurance, aiming for lower spreads due to robust investor interest. This record deal helps stabilize the insurer of last resort and reduces wildfire risk pressures on homeowner policies in vulnerable areas.[2]

Farmers Insurance eliminated its monthly cap of 9,500 new homeowners policies in California and filed a new rating plan aligned with the Sustainable Insurance Strategy to expand coverage in distressed areas. The plan includes a 6.99% statewide rate increase request and enhanced bundling discounts to boost policy writings.[4]