Daily California P&C Insurance News

Farmers Insurance, California’s largest property casualty insurer, has removed its 9,500 new homeowners policies per month cap effective immediately, driven by improvements from Commissioner Lara’s Sustainable Insurance Strategy. The company filed a new rating plan requesting a 6.99% rate increase and plans to market to 300,000 consumers in distressed areas starting early 2026.

Governor Newsom’s executive order directs state agencies to accelerate solutions for California’s property insurance crisis, building on Commissioner Lara’s Sustainable Insurance Strategy. Five insurers, including major homeowners carriers, have committed to grow in the state with 6.9% rate requests while pledging expanded coverage.

Farmers Insurance will eliminate its cap on new homeowners, condo, and renters policies in California and submit a Sustainable Insurance Strategy-aligned rating plan expected to add thousands of policies in distressed areas. The plan includes a 6.99% statewide rate increase and an improved 22% home/auto bundling discount, up from 15%.

Governor Newsom’s executive order urges state agencies to fast-track solutions for the homeowners insurance crisis, including a comprehensive natural catastrophe report due April 2026 per SB 254. Commissioner Lara supports a ‘whole-of-government’ approach, noting five insurers (Mercury, CSAA, USAA, Pacific Specialty, California Casualty) pledging growth with modest 6.9% rate hikes.

Commissioner Ricardo Lara proposes stricter funding rules for consumer groups challenging insurer rate hikes under Proposition 103, prompting public comment and a November 20 hearing. Industry groups call the changes routine legal billing standards, while consumer advocates raise concerns over duplicative Department of Insurance work.