Commissioner Lara: ‘Whole-of-government’ approach needed for insurance stability

News: 2025 Press Release

SACRAMENTO, Calif. — Insurance Commissioner Ricardo Lara issued the following statement after Governor Gavin Newsom’s executive order on insurance stability:

“The Governor is absolutely correct: we need a ‘whole-of-government’ approach to make continued progress. Today’s executive order strengthens the advancements we are making through our Sustainable Insurance Strategy—real, measurable progress that restores insurance options for Californians and instills hope in neglected communities.

“Five major insurance companies, including three leading homeowners’ carriers, have pledged to stay and grow in California. This marks a significant shift from past practices under past insurance commissioners where companies would raise rates while dropping policyholders.

“I have driven organizational transformation by modernizing California’s Department of Insurance to focus on anticipating risks rather than merely reacting to them. We are now applying this proactive approach at a multi-agency level to better prepare for catastrophic events. By collaborating with CAL FIRE, CalOES, and other emergency agencies, we can enhance our preparedness, response, and recovery efforts, leading to reduced risks, protection of lives, and improved long-term availability of insurance.

“Our shared goal is to ensure that every Californian has peace of mind, knowing they can recover and rebuild after a disaster, regardless of their ZIP Code or income level. With the Governor’s ongoing support, my Department will carefully review insurance companies’ rate filings to ensure consumers are not overcharged by any insurance company or intervenor. I will continue to hold all insurance companies accountable for their obligations to wildfire survivors.

The Governor’s order builds on recent progress in addressing California’s property insurance crisis under Commissioner Lara’s Sustainable Insurance Strategy. Five insurance companies, including three of the state’s homeowners’ carriers, have announced plans to remain and grow in California, marking a substantial market shift from when insurers would raise rates while dropping policies. To maintain this momentum, the Governor’s order requests the Department of Insurance to collaborate with CAL FIRE and other emergency agencies to create the first comprehensive report, as outlined in chaptered SB 254, aimed at expediting preparedness and recovery from natural catastrophes.

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MEDIA NOTES:

• Governor Newsom’s Executive Order
• Five homeowners insurers including three of the state’s top-seven largest are committing to stay and grow in the state. The companies are Mercury (3rd largest in homeowners market share in 2024), CSAA (5th largest), USAA (7th largest), Pacific Specialty (13th largest), and California Casualty (30th largest).
• All five insurers have requested rate changes of 6.9%, identical to thousands approved under past insurance commissioners, but with a commitment to remain and grow in the state.
• As an active member of the California Earthquake Authority Governing Board and the California Catastrophe Response Council, Commissioner Lara and the Department remain engaged partners with the California Wildfire Fund Administrator and the Governor’s Administration to finalize this SB 254 report and submit it to the Governor and State Legislature by April 1, 2026.