California Property & Casualty Daily Briefing

A new Disaster Recovery Reform Act (SB 876) introduced by Insurance Commissioner Ricardo Lara would require insurers to maintain disaster recovery claims plans, expand additional living expense limits, and double penalties for claims-handling violations during declared emergencies.[2]

The bill responds to widespread complaints after the Los Angeles wildfires and would mandate faster upfront payments, status updates when adjusters change, and broader offers of extended and guaranteed replacement cost coverage.[2]

Analysis of recent filings suggests California home insurance premiums could rise roughly 20% or more between 2023 and the end of 2025 as reinsurers reprice wildfire, flood, and mudslide exposures, especially in high‑risk Southern California ZIP codes.[3]

While global property reinsurance pricing may stabilize in 2026, new rules allowing forward‑looking catastrophe models are expected to push rates higher in risky areas even as they gradually attract more carrier capacity back into the state.[3]

New figures from the American Property Casualty Insurance Association show insurers have paid over $22.4 billion in claims from recent California wildfires, underscoring the severity of catastrophe losses hitting the state’s P&C sector.[1]

The payout totals highlight ongoing profitability challenges for property carriers and reinforce the industry’s push for updated catastrophe modeling, rate adequacy, and mitigation measures in high‑risk regions.[1]

DBRS Morningstar reports that the 2025 Los Angeles area wildfires were a major stress event for California’s P&C sector, adding tens of billions of dollars in losses on top of existing catastrophe pressures.[6]

The commentary notes that while capital levels and reinsurance support helped absorb the shock, the event is accelerating shifts in underwriting, pricing, and risk selection across California property books.[6]

CalMatters reports that a year after the Eaton and Palisades fires, many Southern California homeowners say they face slow or insufficient insurance payouts, complicating efforts to rebuild and driving calls for reform.[7]

Survivors describe adjuster turnover, disputed damage estimates, and underinsurance issues, adding political momentum behind proposals to tighten claims‑handling standards and strengthen post‑disaster coverage requirements for California carriers.[7]