Daily California P&C Insurance News

Farmers Insurance, California’s largest property casualty insurer, has removed its cap of 9,500 new homeowners policies per month, effective immediately, due to an improved market under the Sustainable Insurance Strategy.[1] The company filed a new rating plan with a 6.99% average rate increase and plans to market to 300,000 consumers in distressed areas in early 2026.[1][2]

California home insurance premiums are projected to rise 20% or more from 2023 through end of 2025, driven by reinsurers, catastrophe modeling, extreme weather, and regulatory changes.[2] Higher-risk Southern California properties face tightened availability and affordability amid carrier underwriting responses.[2]

Insurance Commissioner Ricardo Lara proposed rules tightening funding for consumer groups intervening in rate cases under Proposition 103.[2] Advocates warn this could weaken oversight of property and casualty rate increases by limiting reimbursements for legal work.[2]

The California FAIR Plan placed a record $750 million Golden Bear Re catastrophe bond, the largest wildfire-exposed cat bond, offering three years of reinsurance through 2028.[2] Notes priced at reduced spreads, potentially easing reinsurance costs for the insurer of last resort.[2]

A new Nevada law effective 2026 allows insurers to exclude wildfire coverage, prompting comparisons to California’s FAIR Plan growth where 2% of homeowners hold separate fire policies.[3] California requires minimum fire coverage via standard policy, but experts note functional similarities as insurers shift high-risk fire exposure to FAIR Plan.[3]