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 across Calaveras, Tuolumne, San Joaquin, Stanislaus, Mariposa, and Merced counties following Governor Newsom’s emergency declaration for the TCU September Complex Fire. The one-year moratorium blocks non-renewals or cancellations regardless of property loss, supporting Commissioner Lara’s Sustainable Insurance Strategy amid ongoing wildfire challenges.[1]

California home insurance premiums are forecasted to increase by about 20% or more by the end of 2025 due to escalating wildfire losses, rising reinsurance costs, and inflationary rebuilding pressures. Large carriers are pursuing rate hikes up to 30% as regulators permit expanded use of catastrophe models to address ongoing affordability and capacity issues.[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 after the Pack Fire emergency declaration. This one-year protection from non-renewals and cancellations applies regardless of loss and aligns with broader reforms to sustain carrier participation in high-risk wildfire areas.[2]

The California FAIR Plan expanded its inaugural Golden Bear Re catastrophe bond to $750 million in fully collateralized wildfire reinsurance, aiming for lower spread pricing due to robust investor interest. This record-sized transaction seeks to bolster the stability of the state’s insurer of last resort and alleviate wildfire risk pressures in high-risk homeowner coverage zones.[2]

Farmers Insurance announced it will eliminate its cap on new homeowners policies in California effective immediately, including Smart Plan Home, Condo, and Renters products, as part of the Sustainable Insurance Strategy. The company also filed a new rating plan requesting a 6.99% statewide rate increase while offering enhanced bundling discounts and targeting expanded coverage in distressed areas.[3]