Vice Chair of Rebuild California on California’s insurance, utility, and crime crises: 'Our insurance market is in crisis'

Mike Netter, Vice Chair of Rebuild California, said that the state is facing a crisis across multiple fronts, including insurance, utilities, homelessness, and crime. Netter made this statement on his X profile on March 11.

"Utility costs are crushing families," said Netter. "Homelessness is exploding. Crime and drugs are out of control."

According to CNN, California's insurance market is experiencing difficulties as insurers increasingly withdraw from high-risk areas due to rising reinsurance costs and stricter regulations. In response, the state has introduced rules requiring insurers to offer coverage in fire-prone areas proportional to their statewide market share while allowing them to factor reinsurance costs into rate calculations. This change will lead to premium hikes of up to 50% without guaranteeing broader access to coverage.

The Los Angeles Times reports that auto insurance rates in California have surged significantly. Full coverage averaged $2,417 in mid-2024, marking a 45% increase from the previous year and projected to reach $2,681 by year-end. The spike is attributed to increased driving, pricier repairs for tech-heavy vehicles, inflation, and higher medical costs following accidents. Frustrated with regulations, some insurers have limited new policies or exited the state entirely.

Furthermore, utility rates in California have increased by 47% between 2019 and 2023. Customers are now paying nearly twice the national average due primarily to costly grid upgrades, wildfire mitigation efforts, and infrastructure investments. Despite these rising bills, major utilities like Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E) are reporting record profits according to Canary Media.

Netter is a former Staples executive who now leads conservative activism in California. He spearheaded the Gavin Newsom recall effort and mobilized volunteers statewide. A graduate of San Diego State University, he speaks across the state to raise awareness as noted on Rebuild California's website.