Working Together to Protect California’s Insurance Future

Working Together to Protect California’s Insurance Future

August 7, 2026 — California is experiencing real pressure in its insurance market due to major climate related disasters happening both globally and across the United States. Extreme heat waves, larger and more frequent wildfires, record temperatures, severe flooding, strong storms, and the effects of a new Super El Niño are all occurring at the same time. These overlapping disasters make it harder for insurance companies to predict risks and maintain stable, affordable coverage.
Because these challenges affect all of us, the solution requires shared action. California is strengthening its tools and policies, and consumers can play an important role by making homes and communities safer.

About This Briefing

The California Department of Insurance (CDI) prepared this briefing to help Californians better understand the pressures shaping today’s insurance market. It explains the climate driven disasters affecting insurance worldwide, how those events influence California’s market, and the work underway at CDI and the National Association of Insurance Commissioners (NAIC) to modernize regulations and improve long term stability.

Key Trends and Impacts

• Climate disasters are becoming more frequent and severe, and experts expect continued challenges in the years ahead.
• Strong mitigation efforts—by both the state and consumers—are essential to reducing risk.
• CDI is focusing on:
  • Sustainable Insurance Strategies to stabilize the market
  • Supporting safer, fire resistant homes and communities
  • Transitioning homes from the FAIR Plan back into private insurance when possible
  • Using better data and modern modeling tools to strengthen long term market health

We’re All in This Together
California’s insurance system works best when everyone contributes to reducing risk. That means:

• Consumers doing their part through home hardening, defensible space, and preparedness
• Communities adopting safety improvements and fire resilience programs
• Local and state leaders strengthening building standards, planning tools, and emergency readiness
• CDI continuing to advocate, modernize regulations, and push for fair and available insurance options

By reducing risk at the household and community level, Californians help improve insurance availability and affordability statewide. Every action—big or small—supports a healthier insurance market.

Why This Matters for Consumers
Climate driven insurance challenges directly affect families, renters, homeowners, and small businesses. When losses rise, insurance becomes harder to find or more expensive. That’s why mitigation, preparedness, and safety programs are so important. Consumers who invest in reducing risk not only protect their homes but help stabilize the entire market.
At the same time, CDI will continue doing its part: advocating for consumers, strengthening regulations, advancing modernization, and working with state, national, and international partners to protect Californians during this period of rapid change.

Full Briefing
For more information, detailed analysis, and the full set of data, please view the complete briefing linked here.