Ricardo Lara, California Insurance Commissioner, said on Feb. 18 that “insurers are stepping forward instead of stepping back” as the state continues efforts to modernize regulations and address challenges in homeowners insurance availability following repeated wildfire events and market disruptions.
The statement was made during Lara’s testimony at the Assembly Standing Committee on Insurance oversight hearing, which focused on implementing the Department of Insurance’s Sustainable Insurance Strategy. The session marked the sixth review of the strategy’s progress, presided over by Committee Chair Lisa Calderon, according to a hearing summary.
Lara said, “We are now operating with technology where insurers and the Department are operating with the same data sets, for example. Just last month, the Department launched a new data reconciliation tool that insurers must complete before submitting a full rate application. We developed this tool with early input from insurers and are conducting trainings to ensure smooth implementation. This system is already reducing incomplete filings and avoiding downstream delays for insurers.” According to Lara’s testimony at the oversight hearing, these modernization efforts aim to improve efficiency and support insurer participation.
Wildfire losses in California over the last decade have exceeded five times those recorded in prior decades. Eight of the ten costliest insured wildfires in U.S. history occurred in California during this period. The Sustainable Insurance Strategy uses forward-looking catastrophe models to address escalating risks and support market participation, according to congressional testimony on insured wildfire costs.
The California FAIR Plan reported total exposure of $724 billion as of December 2025—a 230% increase since September 2022—with policies in force reaching 668,609 (a 146% rise). The plan handled about 5,400 claims from recent wildfires and paid nearly $3.5 billion to policyholders.
Non-renewal rates for homeowners policies in California’s ten counties with highest wildfire exposure reached 16.3% in 2023—almost double the statewide average—while insurer-initiated actions accounted for an estimated 20–25% of non-renewals that year.
