Insurance Commissioner Ricardo Lara has expressed support for Governor Gavin Newsom’s recent executive order aimed at enhancing insurance stability in California. Lara emphasized the need for a “whole-of-government” approach to ensure progress in this area. He noted that the executive order aligns with the goals of the Sustainable Insurance Strategy, which seeks to restore insurance options and provide hope to underserved communities.
Lara highlighted that five major insurance companies, including three prominent homeowners’ carriers, have committed to maintaining and expanding their presence in California. This development contrasts with previous trends where insurers would increase rates while reducing coverage.
The Commissioner has been working on transforming the California Department of Insurance by focusing on risk anticipation rather than reaction. By collaborating with agencies like CAL FIRE and CalOES, the department aims to improve preparedness and response to catastrophic events, ultimately reducing risks and enhancing long-term insurance availability.
“Our shared goal is to ensure that every Californian has peace of mind,” Lara said, emphasizing the importance of recovery and rebuilding after disasters without discrimination based on location or income. He assured that his department will scrutinize rate filings to prevent overcharging by insurers and hold them accountable for their commitments to wildfire survivors.
Governor Newsom’s order builds upon recent advances under Lara’s strategy. It requests collaboration between the Department of Insurance and emergency agencies to produce a comprehensive report as per SB 254, focusing on improving preparedness and recovery from natural disasters.
Information from this article can be found here.
