Andrew Engler, CEO of RockRose Risk, has said that a recent investigation revealed how insurers in California are utilizing loopholes to avoid providing coverage in wildfire-prone areas amid increasing premium concerns. This statement was made on the social media platform X.
“The New York Times just exposed California’s insurance deal,” said Engler. “And they’re NOT just talking about rising premiums. Instead, they found loopholes that let insurers avoid fire zones entirely.”
The California homeowners insurance market is experiencing significant pressure, particularly in regions at high risk for wildfires. This strain results from the intersection of increasing wildfire frequency, rising reinsurance costs, and regulatory changes. The California Department of Insurance (CDI) recently introduced rules allowing insurers to incorporate catastrophe modeling and reinsurance costs into rate filings while mandating minimum writing levels in fire-prone areas. According to CDI and industry analyses, previous regulations prevented insurers from fully pricing wildfire risks, causing many carriers to exit high-hazard zones and shift more policies into the backstop California FAIR Plan. The regulator’s new strategy aims to restore market stability and availability as climate-driven wildfires intensify.
Premium rate filings in California reflect these cost pressures. For instance, the homeowners market has seen approvals for carrier-specific hikes averaging double-digit percentages recently, such as an approximate 17% increase effective June 1, 2025, for major carriers. In private auto insurance, the approved average increase was roughly 7.2% year-to-date in late 2024, with forecasts suggesting increases of about 7–8% in 2025 due to ongoing inflationary and catastrophe pressures. S&P Global Market Intelligence indicates that the escalation in the auto segment reflects broader cost inflation trends and delayed rate filing catch-up.
In high wildfire-risk ZIP codes in California, there has been a significant rise in the number of structures insured under the FAIR Plan compared to non-fire zones. The CDI reports that the percentage of residential structures insured through the FAIR Plan in high/very high fire-risk ZIP codes was notably elevated in 2022 versus lower-risk areas. This trend illustrates how private carrier withdrawal concentrates exposure within the state-run plan. For example, the FAIR Plan’s policy count more than doubled from approximately 115,000 in 2017 to over 500,000 by early 2025, highlighting the shifting risk burden toward this insurer of last resort.
Engler is a U.S.-based insurance and insurtech entrepreneur who previously served as Vice President of Digital Products at Argo Group. There he built over $72 million in new product revenue according to Lowercarbon Capital. He later co-founded Kettle—a reinsurer/insurtech—and now serves as Founder & CEO of RockRose Risk. His work focuses on applying machine-learning wildfire modeling and mitigation documentation to assist insurers and property owners in high-risk zones.
RockRose Risk (RockRose Insurance Services LLC) operates as an insurance broker and underwriting manager specializing in properties exposed to wildfires. According to its company website, RockRose merges insurance coverage with AI-driven risk scoring and mitigation services to help “uninsurable” property owners secure coverage or establish captive self-insurance programs. Founded by Engler, RockRose offers immediate protection along with risk assessments and mitigation strategies for high-wildfire zones across Western U.S., particularly targeting the California market.
