Daily P&C Insurance News

Farmers Insurance, California’s largest property casualty insurer, has removed its cap on new homeowners policies effective immediately, driven by improved market conditions under the Sustainable Insurance Strategy. The company plans to add thousands of policies in distressed areas and filed for a 6.99% rate increase with enhanced bundling discounts.

Governor Gavin Newsom issued an executive order directing state agencies to accelerate solutions for California’s homeowners insurance crisis, focusing on natural disaster mitigation. Insurance Commissioner Ricardo Lara supports the move, noting five major insurers have committed to expand coverage amid regulatory reforms.

Companies including Mercury, CSAA, Pacific Specialty, Allstate, and Farmers have committed to staying or resuming service in California following new insurance reforms. The reforms allow catastrophe risk factors in premium setting, though critics warn of potential rate hikes like California Casualty’s filed 6.9% increase.

Five property insurers—CSAA, Mercury, California Casualty, Pacific Specialty—are returning to California after previously leaving due to wildfire risks. The return aligns with reforms from Commissioner Lara and Governor Newsom, though the companies have requested 6.9% rate increases.

Effective January 1, 2026, California eliminates the prelicensing education requirement for specific producer authority lines while maintaining the 12-hour post-licensing course. This change aims to streamline licensing for insurance professionals in the state.