California

Insurance industry advisors and groups say the INSURE Act proposal for a catastrophic reinsurance program won't solve rising prices and coverage crisis.

California's insurance regulator and a consumer advocacy group continue battles over the funding of the state's home insurer of last resort, and other issues.

Damage claims from the Eaton wildfire could wipe out the $21 billion fund created to protect utilities and their customers when an investor-owned utility's equipment is deemed responsible.

The state's insurer of last resort has taken on more policyholders that private insurers deem too risky. The strain on the plan, worsened by the January wildfires, led the state's regulator to allow an assessment on policyholders to cover the higher risks.

An academic paper presented at the Brookings Institute's annual conference found that future wildfire risks are already having economically significant impacts on financial markets, municipal borrowing costs and vulnerable communities.

Figures released by the state's insurer of last resort show double digit percentage increases over last fiscal year, and triple digit percentage increases since four years ago.

The state forecasts eroding coastlines will endanger $18 billion of existing homes and commercial buildings in the coming decades.

After California's own insurer of last resort was held liable for smoke claims, and a probe of State Farm was launched, a new task force is ordered to set standards for smoke damage claims.

Commissioner Ricardo Lara announced greater transparency to come for FAIR Plan data, plus a broadening of coverage to commercial properties, homeowner associations and affordable housing.

The state's insurer of last resort is facing an investigation by the California Department of Insurance as well as lawsuits from policyholders.

After the L.A. fires, a regulator's probe of State Farm claims practices and a looming wave of lawsuits expose gaps in the legal responsibilities of both insurers and policyholders.

Even before January's fires in Los Angeles, change-of-address data shows residential moves based on fire risks and insurance availability.

Hedge funds are facing pushback in California as their bets tied to insurance claims stemming from the Los Angeles wildfires are attacked as unethical.

The state's regulator said the insurer must show it will cover more homeowners, and be more transparent. Consumer advocates want more concessions, saying the insurance crisis can't be solved on the backs of homeowners.

Consumer Watchdog says increase was not justified, while insurance commissioner points to concessions gained from the insurer.

The probe into the deadly Southern California Eaton fire is likely to take a year or more as authorities examine Edison International's utility equipment as the possible cause, according to the company's CEO.

Homeowners class action plaintiffs will depend on finding evidence of conspiracy in discovery process, a legal expert said, but the large scope and cost of discovery, as well as difficulty getting a summary judgment, are likely to lead defendant companies to settle.

Consumer Watchdog argues that California's insurance commissioner cannot allow the FAIR Plan homeowners insurance of last resort to pass on half a $1 billion assessment to consumers.

AB 226, a borrowing mechanism bill passed by the state assembly, allows bond issues supporting the homeowners insurer of last resort – but doesn't specify traditional financing or catastrophe bonds. Cat bonds would not have to be paid back. Also, a climate finance policy advisor said, the bill doesn't account for future disaster risks.

Recent wildfire updates include the Federal Housing Authority's waiving of quality-control reviews and the upheaval of the state's commercial real estate space.