Ken Smith, Homeowners' insurance executive | x.com
Ken Smith, a homeowners' insurance executive, said that California's regulatory restrictions intended to protect homeowners in wildfire-prone areas have prompted insurers to withdraw from the market, exacerbating issues with insurance availability. He made this statement on X.
"The CA Department of Insurance was concerned that people in high-risk fire areas wouldn't be able to find insurance," said Smith. "They made a rule that insurance companies were no longer allowed to cancel policies in any high risk area. More-or-less every insurance company immediately stopped writing new business in those areas."
According to Bankrate, several major insurance companies have recently reduced their presence or exited California's home insurance market due to increasing wildfire risks and regulatory challenges. State Farm, the state's largest home insurer, ceased accepting new applications for property insurance in May 2023. The company cited "historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market" as reasons for its decision. Allstate also halted new homeowners' insurance policies in the state. Other insurers such as Farmers Insurance, USAA (United Services Automobile Association), Travelers, Nationwide, and Chubb have similarly limited new homeowners' policies in California, raising concerns about the stability of the state's home insurance market.
AP News reports that the California FAIR Plan, which serves as the state's insurer of last resort, has experienced a significant increase in policyholders. As of March 2025, it covers over 555,000 homes—more than double the number from 2020. This increase is attributed to private insurers reducing their presence in high-risk areas, leaving many homeowners with limited options. To address financial strain on the FAIR Plan, the state imposed a $1 billion levy on private insurers to help cover claims related to the January 2025 Los Angeles wildfires that caused nearly $4 billion in losses. Insurers are permitted to recoup half of this cost from policyholders through a one-time surcharge; however, this move has sparked legal challenges from consumer advocacy groups.
Smith is also known as a writer and lay theologian based in Woodinville, Washington. He is recognized for his blog Would-Be Theologian where he explores intersections of theology, culture, and politics. Active on social media since 2009, he describes himself as "perpetuating the patriarchy since 2007," according to his X profile.
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