David Sampson, President and Chief Executive Officer | Official Website
The American Property Casualty Insurance Association (APCIA) has issued a statement regarding the California FAIR Plan's request for assistance from the California Department of Insurance. The request aims to fund claims payments related to wildfires in Los Angeles, specifically in Pacific Palisades and Altadena. According to APCIA, all admitted insurers in California are required to pay assessments when requested by the FAIR Plan.
Mark Sektnan, APCIA Vice President for State Government Relations, said: "Insurers are committed to helping Californians recover and rebuild from the devastating Southern California wildfires. With peak fire season still ahead, the urgent need for reforms to stabilize California’s insurance market and protect consumer access to coverage now and in the future has never been greater."
Sektnan emphasized the importance of preserving the FAIR Plan as a safety net for homeowners amid increasing wildfire frequency and intensity. He suggested that rebuilding reserves is crucial for long-term stability and called for exploring diverse funding solutions such as catastrophic bonds and lines of credit. He added: "For the FAIR Plan to recapitalize, they must be allowed to charge actuarily sound rates."
When assessments are made on admitted insurers, a bulletin from the California Department of Insurance allows these costs to be distributed across a broader pool of insureds. This measure is intended to prevent further strain on California's insurance market and avoid widespread policy cancellations.
"We remain committed to working with Governor Newsom, Commissioner Lara, and legislative leaders to protect the FAIR Plan’s future and restore a sustainable insurance market in California," Sektnan concluded.
The APCIA serves as a national trade association representing home, auto, and business insurers. It promotes private competition for consumers' benefit while supporting families, communities, and businesses across the globe.
Information from this article can be found here.
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