Daily California P&C Insurance News

Governor Newsom’s executive order supports Commissioner Lara’s Sustainable Insurance Strategy by directing state agencies to create a comprehensive natural catastrophe report by April 2026. Five major insurers have committed to remaining and expanding in California with modest 6.9% rate requests, marking progress in stabilizing the market.

Farmers Insurance is eliminating its cap on new homeowners policies effective immediately, anticipating market improvements from Commissioner Lara’s Sustainable Insurance Strategy. The company filed for a 6.99% rate increase while offering enhanced bundling discounts and plans to market to 300,000 consumers in distressed areas.

Governor Newsom’s executive order accelerates solutions to California’s homeowners insurance crisis by directing agencies to expedite a natural catastrophe report mandated by SB 254. Commissioner Lara supports the move, noting five insurers including Mercury and USAA have pledged to expand coverage with standard 6.9% rate increases.

Commissioner Ricardo Lara proposes stricter funding rules for consumer groups challenging insurer rate hikes under Proposition 103. The changes aim to prevent duplication of Department of Insurance work, with public comments open and a hearing scheduled for November 20.

P&C premium growth is projected at 3-4% in 2026 with property rates softening for low-risk homes amid reinsurance capacity. California homeowners in wildfire-prone areas should prioritize mitigation measures like defensible space to maintain coverage as availability challenges persist.