California Insurance Commissioner Ricardo Lara is inviting the public to participate in a virtual hearing on September 17 to provide input on a groundbreaking wildfire insurance regulation. This new regulation aims to increase coverage options for homeowners in wildfire-prone areas and modernize how insurers assess wildfire risks in the face of climate change.
The regulation, the first of its kind in California, will require insurance companies to expand coverage in high-risk areas, addressing the growing problem of insurers withdrawing from wildfire-distressed regions. It also introduces the use of forward-looking catastrophe models to better assess wildfire risk and calculate insurance rates. For the first time, insurers will be required to factor in community-level wildfire mitigation efforts—such as fireproofing homes and reducing vegetation—when setting rates. These efforts could result in lower premiums for communities that have invested in reducing their wildfire risks.
“Climate change is making insurance harder to find and more costly for those at greatest risk,” said Commissioner Lara. “My strategy will modernize our marketplace, restoring options for consumers while ensuring transparency in how rates are determined.”
The virtual hearing offers a public platform to review and comment on the proposed regulation, which is available for review here. It will take place on September 17, 2024, from 10 a.m. to 1 p.m., or until all attendees wishing to provide input have done so. Interested individuals can join the hearing via Zoom at this link. A telephonic call-in line will also be available for those with hearing impairments, and accommodations are available upon request.
All persons are invited to submit written comments on the proposed regulation during the public comment period, which ends on September 17, 2024. Written comments can be directed to Sara Ahn, Staff Counsel, at the California Department of Insurance, c/o Office of the Special Counsel, 300 Capitol Mall, 16th Floor, Sacramento, CA 95814, or via email at [email protected].
Community involvement is critical in shaping this regulation, which seeks to protect Californians living in wildfire-prone areas. This regulation marks a significant step toward restoring insurance options for residents and making California more resilient to the increasing threat of wildfires.
