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California's Next Insurance Commissioner Will Have 'Brutal' Balancing Act

On recent years, candidates for California insurance commissioner confront a market where many residents struggle to find or keep homeowners coverage, with the FAIR Plan up 146% since 2022, according to filings.
Over the past seven years, California's biggest wildfires reshaped the insurance landscape, driving homeowner insurers to cancel policies and push rates sharply higher.
Lara's regulatory changes last year sped rate reviews and let insurers factor reinsurance and catastrophe models; Mercury Insurance, CSAA, and USAA requested higher rates, with Lara approving a 6.9% increase for Mercury and CSAA over the holidays.
Survivors of last year's Los Angeles County fires have sued insurers and called for Lara to step down over claims delays, as he says recovery will take three to five years and California is already a year into that timeline.
The next insurance commissioner will need to balance availability against affordability while deciding the future of Lara's rules and engage insurers, lawmakers and consumer groups across multiple insurance lines.

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California's next insurance commissioner will have 'brutal' balancing act

Insurance Commissioner Ricardo Lara speaks during an event at CalMatters’ studio in Sacramento on Sept. 19, 2024. (File photo by Fred Greaves/For CalMatters) This story was originally published by CalMatters. Sign up for their newsletters. In November, Californians will vote for “the second-hardest job in the state behind the governor.” That’s according to someone who has held the job twice: John Garamendi, who was the state’s first elected insu…

29 days ago·San Diego County, United States

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