California

California Governor Gavin Newsom said he wants lawmakers to expedite the approval process for insurance companies seeking to hike rates, saying an overhaul of the state's market is taking too long.

Allstate Corp. will end its years-long pause on underwriting in California as soon as the state regulator adopts proposed regulatory changes to make it easier for insurers to raise rates, according to a company spokesperson.

The two companies, units of Japan-based Tokio Marine Holdings Inc., said the decision will affect 12,556 policies with premiums of $11.3 million.

The move comes just nine months after State Farm announced plans to stop issuing new coverage in the most populous US state.

The jury is still out on whether the California insurance regulator's plan to let insurers use catastrophe modeling for rates will make wildfire loss coverage more widely available.

A preliminary calculation from Accuweather put the estimated losses at $9 billion to $11 billion after more than 10 inches of rain fell in the mountains west of Los Angeles, making it one of the wettest two-day periods in 147 years, AccuWeather said.

Risk analytics essential to equip P&C insurers in California with the capabilities to precisely identify, evaluate and price risk.

Capco predicts a greater emphasis on collaboration between insurers and the DOI to ensure ongoing coverage for policyholders as the DOI will take on additional governance and responsibilities when partnering with insurers to protect insured individuals.

AIG has pulled away from writing some business in California, while other insurers have taken similar steps in that state as well as in Florida.

Under the new rules, which are slated to be completed by December 2024, insurers will be able to raise premiums based on current and future risks as long as they agree to provide a certain share of coverage in areas vulnerable to fires. The existing rules only allow them to consider historical data.