California Blocks State Farm’s Emergency 22% Home Insurance Rate Hike

Insurance Commissioner Ricardo Lara demands further justification from State Farm as wildfire losses strain California’s insurance market.

California Insurance Commissioner Ricardo Lara rejected State Farm's request for an emergency 22% rate increase for homeowners, citing insufficient evidence to justify the hike.
State Farm argued the increase was necessary due to over $1 billion in claims from recent Los Angeles wildfires and ongoing financial losses in the state.
Lara questioned State Farm's financial management and requested a detailed explanation of its financial condition and alternative recovery measures beyond raising rates.
The decision follows years of escalating wildfire risks, with State Farm previously halting new policies and non-renewing tens of thousands of existing ones in California.
A meeting on February 26 will bring together State Farm, regulators, and consumer advocates to address the rate hike request and the insurer's financial challenges.