Commissioner Lara’s landmark transparency and accountability reforms now in effect, strengthening consumer protections in insurance rate reviews
News: 2026 Press Release
SACRAMENTO, Calif. — Insurance Commissioner Ricardo Lara today announced that new transparency and accountability reforms are now in effect, modernizing California’s insurance rate review process and strengthening consumer protections. These reforms increase public access to information, establish clearer standards for intervenor participation, and ensure stronger oversight of costs that can ultimately be paid by policyholders.
“These reforms put the power of transparency directly into consumers’ hands, where it belongs,” said Commissioner Lara. “Every dollar matters for Californians who are struggling to find and afford insurance. They have a right to know who is participating in rate proceedings, what costs are being requested, and how those costs impact the premiums they ultimately pay.”
The new “Administrative Hearing Bureau and Intervenor Fairness and Accountability” regulation represents the most significant modernization of California’s insurance intervenor process since voters approved Proposition 103 in 1988.
The regulation strengthens transparency, improves accountability, and enhances public confidence in California’s insurance rate review system by establishing clearer standards for intervenor participation, documentation, and compensation requests. It also improves public access to information about pending administrative hearings including regular status updates in rate filing proceedings to promote greater understanding of public processes.
“Transparency cannot apply to only one part of the process,” continued Commissioner Lara. “We are holding every participant accountable -- insurance companies, intervenors, and the Department itself -- because consumers deserve a fair, modern, and fully transparent insurance marketplace. These reforms strengthen oversight, not limit participation, and ensure that consumer dollars are protected at every step.”
The urgency of these reforms is underscored by the recent State Farm General rate proceeding, in which Consumer Watchdog joined a three‑party settlement supporting an average 17 percent rate increase for State Farm homeowners’ policyholders. Consumer Watchdog may later seek intervenor compensation for its participation, as authorized under Proposition 103. If a compensation request is submitted and approved, the award could be paid by State Farm policyholders under existing law.
Future rate applications and any future requests for compensation submitted under the new regulation will be reviewed under the Department’s enhanced transparency, accountability, and qualification standards now in effect.
The Department issued letters to all currently certified intervenors notifying them that parties seeking compensation funded by policyholders may be required to answer additional questions and provide supplemental documentation demonstrating compliance with the new requirements including disclosure of funding sources and potential conflicts of interest. Petitions recently granted by the Department will be subject to these requirements as applicable. All Department actions on intervenor compensation requests will continue to be posted publicly. From 2013 to 2026, intervenors received more than $14.4 million in compensation for their participation in rate filings.
The Department’s record during Commissioner Lara’s tenure demonstrates the importance of rigorous regulatory oversight. From 2019 through 2025, the Department’s expert review of insurance rate filings saved Californians $6.6 billion in premiums and secured $3.3 billion in refunds for drivers during the COVID‑19 pandemic.
Earlier this year, after a rigorous review by Department rate regulation experts, a homeowners insurance rate request from Farmers Insurance was reduced from 6.9 percent to approximately 1.5 percent. That reduction achieved through the Department’s independent rate review process resulted in significant consumer savings without requiring policyholders to pay intervenor compensation costs.
These regulations build upon Commissioner Lara’s broader efforts to modernize California’s insurance system, improve transparency, strengthen consumer protections, and stabilize the state’s insurance marketplace. The Department will continue to closely scrutinize all requests for intervenor participation and compensation under the new regulation to ensure California’s nationally recognized rate review system continues evolving with stronger transparency, clearer accountability, and a continued focus on protecting consumers.
For more information about the intervenor compensation process and the Department’s transparency initiatives, visit insurance.ca.gov.
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Media notes:
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
