Nancy Hoffman Vanyek, President and CEO of the Greater San Fernando Valley Chamber of Commerce, has said that lawsuit abuse is contributing to higher insurance premiums and living costs across California. Her remarks were made in an op-ed.
“Polling confirms that Californians are connecting the dots,” said Hoffman Vanyek. “Seventy-two percent believe lawsuit abuse drives up the cost of goods and services. Seventy-six percent say their insurance premiums rose in the last year, with more than half saying they rose “a lot. What may seem like an esoteric debate over legal practice is in fact a major contributor to California’s affordability crisis.”
According to the California Legislative Analyst’s Office (LAO), the state’s affordability crisis is primarily driven by soaring housing costs. In June 2025, monthly payments for a mid-tier home exceeded $5,900, marking an 82% increase since January 2020. During the same period, average hourly wages increased by only 23%. The state faces a housing shortage estimated at up to 3 million units, which has fueled price inflation. Business groups have identified “lawsuit abuse” and elevated tort costs as hidden drivers of increased consumer prices for goods and services. This perspective is supported by commentary from the U.S. Chamber of Commerce Institute for Legal Reform (ILR) on rising civil-justice burdens.
In California’s homeowners-insurance market, State Farm General received approval from the California Department of Insurance in early 2025 to raise premiums by approximately 22% due to wildfire-related losses. PolicyGenius internal data indicates that annual premium renewals in the state rose about 11% over the prior year. These developments reflect rapid premium growth for fire-risk zones in California amid climate-driven exposures.
The ILR’s “Tort Costs in America” study estimates that in 2022, California’s tort-system burden equated to about $5,429 per household, which is higher than the national average of $4,207 per household. This places California among the highest in the nation for per-household tort cost. These elevated legal-system costs may be passed through into higher prices for consumers for goods, services, and insurance.
Vanyek has served as President & Chief Executive Officer of the Greater San Fernando Valley Chamber of Commerce since 1993 after joining the organization in 1987 as Communications Manager and later Program Manager. She was the first woman to lead the chamber in its 110-year history and has been active in business-community advocacy and fee-reform efforts, including reducing city-fee burdens for brewing startups and convening the Save Small Business Coalition during the COVID-19 pandemic.
