P&C Insurance News Daily

Insurance Commissioner Ricardo Lara issued a moratorium order protecting more than 147,000 policyholders affected by the Gifford Fire from non-renewals or cancellations for one year following Governor Newsom’s emergency declaration. The protection shields residents within 29 ZIP Codes adjoining the wildfire, with six major carriers including Farmers, Mercury, CSAA, and USAA committing to staying and growing in fire-affected areas.

California home insurance premiums are projected to rise by roughly 20% or more between 2023 and the end of 2025, with extreme wet weather in Southern California now raising new concerns about flooding and mudslides impacting 2026 pricing. Reinsurers’ rising costs are being passed directly to homeowners through higher premiums, bigger deductibles, and stricter underwriting, while new regulatory changes allow insurers to better reflect catastrophe models and risk in rates.

A new suite of California laws took effect January 1, 2026, aimed at improving property insurance through enhanced wildfire safety measures and expanded consumer protections with increased transparency and customer convenience. The legislation represents a significant regulatory shift focused on addressing climate-driven insurance challenges and market stability.

A new report warns that the return period for wildfires of LA-scale severity could be shorter than commonly anticipated, driven in part by insurance market disruption and excessive FAIR Plan growth as admitted insurers retreated from high-risk areas. FAIR Plan exposure has ballooned from $167 billion in 2021 to nearly $700 billion in 2025, creating systemic risk through carrier assessments following major losses.

Fire victims in Los Angeles report significant delays and frustration with insurance claim processing, though industry leaders note that insurers have paid tens of billions of dollars to policyholders and the rebuilding process continues. The slow pace of payouts has become a major obstacle to recovery, raising questions about claims handling procedures and customer service during disaster recovery.