SACRAMENTO — Months after California’s home insurance market was rattled by major companies pausing or restricting their coverage, the state’s top regulator said Thursday that he would write new rules aimed at persuading insurers to continue doing business in the nation’s most populous state.
Here’s a look at what California Insurance Commissioner Ricardo Lara proposed and how it would affect the state’s insurance market:Unlike most states, California heavily regulates its property insurance market. Insurance companies also buy insurance themselves, a process known as reinsurance. Companies are not allowed to consider their reinsurance costs when setting rates for California homeowners.
Many insurers have responded by pausing or restricting new business in the state. They’ve also opted to not renew insurance coverage for some homeowners.