Daily P&C Insurance News
California Edition

Senate Bill 876, the Disaster Recovery Reform Act, mandates insurers to submit disaster recovery plans for claims handling during emergencies and doubles penalties for violations of fair claims practices. It also expands policy limits for living expenses, requires quicker upfront payments for total losses, and mandates offers of extended replacement cost coverage to aid wildfire survivors.

Southern California’s wet November raises concerns about flooding and mudslides, potentially driving reinsurance costs and home insurance premiums higher into 2026 despite possible global reinsurance softening. New regulations allowing catastrophe models may lead to sustained rate increases and stricter underwriting in high-risk wildfire and flood zones.

Farmers Insurance is eliminating its 9,500 new home policy monthly cap in California starting early 2026, aiming to underwrite 300,000 more consumers in distressed areas. The move credits Commissioner Ricardo Lara’s Sustainable Insurance Strategy for enabling market growth amid ongoing scrutiny.

Los Angeles wildfire victims report delays in insurance claims processing that are stalling rebuilding efforts one year after the blazes. Insurers like State Farm affirm they handle claims seriously, while industry groups note billions paid out amid ongoing frustrations.

US property-casualty insurers expect stable 2026 results with increased competition and downward pricing pressure, following 2025’s benign hurricane season offset by $40 billion in Los Angeles wildfire losses. Commercial lines carriers were largely spared major hits, projecting combined ratios of 96-97% amid normalized catastrophe activity.