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Insurers Pledge Return to California After Lara Unveils Catastrophe Pricing Reforms

Regulators say aligning premiums with projected wildfire losses will keep carriers writing policies.

Overview

  • Mercury, CSAA, Pacific Specialty, Allstate and Farmers have committed to stay in or resume service in the state, according to ABC7.
  • The new framework lets insurers use catastrophe modeling and include their own cost to insure when setting homeowner premiums.
  • Consumer Watchdog opposes a parallel overhaul of intervenor compensation rules, arguing the changes would discourage public participation.
  • The Department of Insurance says intervenors will remain eligible for fees with new transparency on payments and online access to case documents.
  • Lara released data showing 26 of 28 rate cases this year resulted in nearly $1.4 million in fees for Consumer Watchdog, and California Casualty has filed for a 6.9% premium increase.