Adam Shores, Senior Vice President of State Government Relations at the American Property Casualty Insurance Association (APCIA), has addressed concerns regarding a recent New York Times article about California’s insurance market. In a letter to the editor, Shores responded to the November 1 story titled “California Promised Insurance Relief, But Delivered Loopholes.”
Shores stated: “Your Nov. 1 story, ‘California Promised Insurance Relief, But Delivered Loopholes’ presents a misleading narrative that undermines the accuracy of the situation in California’s insurance market.”
He challenged claims made by The Times regarding the creation of “distressed” areas in California. The article suggested that these designations were influenced by negotiations with the insurance industry. Shores countered this point: “The article suggests that insurers had sway over which parts of the state were designated as distressed. This is incorrect. The California Department of Insurance independently developed a formula to determine these designations, based on areas of the state determined to be high and very high wildfire risk. The formula was based on CAL FIRE’s Fire Hazard Severity Zones, along with zip and county level data showing elevated concentrations of policies in the California FAIR Plan. The insurance industry had no role in defining these areas.”
The letter also addressed implications regarding growth in participation in California’s FAIR Plan as an indicator of policy failure. According to Shores: “The article also implies that the growth of the state’s FAIR Plan signals a failure of CDI’s approach. In reality, it reflects the transitional phase of California’s Sustainable Insurance Strategy. While regulations were finalized in December 2024, implementation is still underway. Rate filings using these models are now being submitted under California’s prior approval system—but none have been approved yet.”
Shores further noted that recent reforms and their effects are ongoing: “The Times story overlooks this critical timeline as well as the added strain from the historic Los Angeles fires. The reforms are recent, and their impact is still unfolding. Suggesting failure at this stage misrepresents the facts and risks undermining public confidence in a strategy designed to stabilize coverage in high-risk areas.”
APCIA serves as a national trade association for home, auto, and business insurers across various regions and sizes.
