California Insurance Commissioner Ricardo Lara announced plans to implement a series of regulatory changes this year to stabilize the state’s insurance market. Devastating wildfires over the past decade, rising inflation, and risks posed by climate change have caused insurance turmoil. Major insurance companies pausing or reducing their operations have left many homeowners facing rapidly increasing prices or limited insurance options. Lara stated that in September, he will introduce regulatory changes to expedite the review and approval process for home and auto insurance rate increases. However, insurance trade groups have opposed these proposals. Lara emphasized that the changes need to be made in a manner that withstands legal scrutiny. While Farmers Insurance has announced it will continue to accept new business in California, State Farm has revealed plans to cancel approximately 30,000 policies.
Source and Details: Sacramento Bee