Insurers say they’re starting to write new California homeowner policies, but how many?
Consumer Watchdog says the total is incomplete because insurers have requested or secured $571 million in rate increases under the new rules.
- Since January 2025, California insurers have committed to 12,189 new policies under Commissioner Ricardo Lara's "sustainable insurance strategy," which allows firms to factor in catastrophe models and reinsurance costs when setting rates.
- Insurers must choose between writing 85% of their market share in high-risk areas, growing policies by 5%, or expanding by 5% to reduce reliance on the state-run FAIR Plan.
- Consumer Watchdog argues these commitments fall short, as insurers obtained $571 million in rate increases; Farmers pledged 5,596 policies and Mercury committed to 2,107.
- Disputing these findings, the Insurance Department characterized Consumer Watchdog's analysis as "incomplete and premature," stating it will conduct its own market assessment.
- Since September 2022, the FAIR Plan has grown 157% to about 697,000 active policies, yet officials remain uncertain if analysis will emerge before Commissioner Lara's term ends in January.
12 Articles
12 Articles
Insurers say they're starting to write new California homeowner policies, but how many?
Insurance companies are starting to write new policies in California again after years of holding back as wildfire risk climbed higher. The state Insurance Department says that means outgoing Commissioner Ricardo Lara’s new regulations, intended to boost insurance availability, are working. Each time a company declares its plans to sell policies again, the department touts […]
This article is also available en español. Read it here. Insurance companies are beginning to issue new policies in California after years of reluctance due to the increasing risk of forest fires. The state’s Department of Insurance claims that this means that the new regulations of outgoing commissioner Ricardo Lara, aimed at increasing the availability of insurance, are working. Every time a company announces its plans to resell policies, the …
CalMatters – Insurers say they’re starting to write new California homeowner policies, but how many?
By Levi Sumagaysay, CALMATTERS https://calmatters.org/economy/2026/09/insurance-new-policies-progress/ Insurance companies are starting to write new policies in California again after years of holding back as wildfire risk climbed...
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