California insurance market ‘in chaos,’ says former insurance chief. Can the new chief fix it?

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Insurance non-renewals in California continue even as Commissioner Ricardo Lara introduces regulations favored by the industry.

We’re a big state with big challenges. Each morning we explain the top issues and how Californians are trying to solve them.Insurance non-renewals continue even as Commissioner Ricardo Lara introduces regulations favored by the industry.

Insurance trade groups, which stand to benefit most from the new regulations, agree with Lara’s support for catastrophe modeling and support his so-called sustainable insurance strategy. So do fire chiefs, to an extent. But almost everyone else — homeowners, consumer groups and former insurance commissioners — has lingering concerns. , a Democrat representing parts of Solano and Contra Costa counties, had two stints as state insurance commissioner in the mid-1990s and early 2000s.

He also said he and other fire chiefs are working to make sure the interests of consumers, fire professionals, insurers and the state are aligned. Insurers may not know what homeowners, communities and local fire departments are doing to reduce wildfire risk. One idea: a database to share that information.

State Insurance Commissioner Ricardo Lara speaks during a press conference with Los Angeles labor leaders and advocates in Commerce on Sept. 26, 2022. Photo by Alisha Jucevic for CalMatters “Florida has done what insurers are asking for,” Jones said. Yet “Florida’s rates are three or four times the national average.”

Meanwhile, last week State Farm said that it is not renewing policies for 30,000 California homeowners, as well as refusing to cover all commercial apartments by not renewing 42,000 of those policies. Sarkissian also referred CalMatters to the Personal Insurance Federation of California, which counts State Farm as a member. The industry group’s spokesperson, Rex Frazier, said in an email last week that allowing insurers to use catastrophe modeling would help with insurance availability.

 

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