Tag: California insurance market

California Insurance Companies Pull Out, But This Rule Could Bring Them Back

Live Insurance News
California Insurance

California’s New Rules to Tackle Home Insurance Crisis with Reinsurance Costs California has unveiled a new regulation allowing home insurers to charge higher premiums to cover reinsurance costs. This decision, led by Insurance Commissioner Ricardo Lara, marks the latest step by the state to address its home insurance crisis, as insurers withdraw from high-risk wildfire areas. Here’s what you need to know about the changes and how they could reshape the state’s insurance market. What the New Reinsurance Regulation Means For the first time in California, insurers can factor reinsurance…

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Farmers Insurance to Gradually Reintroduce Coverage Options in California

H. Cutner
Farmers Insurance

Farmers Insurance has announced the phased return of multiple insurance lines for new customers in California, starting December 14, 2024. This move signals a notable shift in the state’s insurance market, bringing expanded coverage options that had been unavailable to new customers for over a year. This development is underpinned by improvements in the regulatory and economic environment, encouraging insurers to revisit their offerings in California. Farmers Reinstated Insurance Lines After a significant pause, Farmers Insurance is set to roll out several key coverage options that aim to alleviate gaps…

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California Insurance Commissioner Announces Game-Changing FAIR Plan Reform

Live Insurance News
California insurance commissioner Ricardo Lara- State Farm rate increase hearing

LOS ANGELES — In a significant move to address California’s ongoing insurance crisis,unveiled a breakthrough agreement to modernize the California FAIR Plan Association (FAIR Plan), the state’s “insurer of last resort.” This initiative is a key component of Lara’s Sustainable Insurance Strategy, marking the largest insurance reform since Proposition 103 was passed in 1988. Modernizing the FAIR Plan “Modernizing the FAIR Plan is a crucial step in our strategy to stabilize California’s insurance market,” said Commissioner Lara. “It’s critical for Californians to understand that a growing FAIR Plan contributes to…

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State Farm Releases Non-Renewal Numbers Amid California’s Deepening Home Insurance Crisis

Angela Linders
Depositphotos - auto insurance - State Farm Sign

State Farm “Restructures” California Portfolio The company made it official, in a move to ensure the financial health of its operations within California, State Farm General Insurance Company is set to scale back its insurance offerings in the state. With an estimated 72,000 policies facing non-renewal, customers across California are poised to feel the pinch as they seek alternative coverage solutions. Starting July 3, 2024, State Farm General will cease renewing approximately 30,000 homeowners, rental dwelling, residential community association, and business owners policies, citing the necessity to sustain adequate claims-paying…

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California insurance market third largest in the world

G. Turner
California insurance market - Flag of America and of California

The state’s insurers collect $332 billion in premiums every year, said the commissioner. The California insurance market now has an annual premium volume higher than ever before. The volume has now reached $332 billion, said Insurance Commissioner Dave Jones. This figure brings the state to the position of being the third largest market in the world. The California insurance market is the largest in the United States. That said, while that figure from the California Department of Insurance (CDI) does sound impressive, knowing what that represents on a global scale…

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Senator Feinstein announces her support for rate controls in health insurance

Julie Campbell

U.S. Senator Dianne Feinstein (D, San Francisco) has announced that she has placed her support behind a controversial ballot measure that would give state insurance regulators the authority to approve California health coverage rates. As one of the most highly respected politicians in California, the support by Feinstein – who is now the chief spokesperson and head booster of the initiative – this high-stakes move suddenly has a great deal more weight behind it. This initiative is designed to provide effective regulation over increases in health premiums. According to an…

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California trade groups and insurance regulators settle two Iran divestiture

Julie Campbell

California insurance regulators and trade groups have come to a settlement over two suits regarding efforts that were being made to put pressure on insurance companies to stop their investments into organizations that took part in nuclear, defense, or energy-related work in Iran. The announcement was first made at the end of Friday by Dave Jones, the Insurance Commissioner in California. The lawsuits had to do with a controversial initiative started in 2009 by Steve Poizner, the previous California Insurance Commissioner, which threatened insurers with penalties and publication when they…

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