California legislators fall short on deal to stabilize P&C insurance market

Published on 9/18/2023
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California Capital Building
Source: Insurance News Net

California lawmakers fell short in a bid to reform the state's P&C insurance market last week through a legislative package.

The group of stakeholders had been working for weeks on the reforms and had hoped to get the legislation to the finish line by the Sept. 11 deadline for new legislation. A major priority included permitting insurers to charge more competitive rates for wildfire-exposed areas.

“California’s decades old regulatory system is outdated and in need of modernization to handle the increasing catastrophic losses resulting from inflation, climate change and extreme weather. California needs a more efficient regulatory approval process to ensure there are enough resources in the system to cover consumer claims," said Denni Ritter, department vice president for state government relations for the American Property Casualty Insurance Association.