The consumer advocacy group looked at rate filings from ten insurers and found they’ve sought more than $500 million in rate increases, while committing to sell just 12,000 new homeowners policies.
Consumer Watchdog executive director Carmen Balber says California’s Sustainable Insurance Strategy has failed to deliver on its promise to get more homeowners insured.
The strategy allows insurers to use catastrophe models to account for future wildfire risk when setting rates, in exchange for commitments to expand coverage.
"We are now almost four years out from when the commissioner first announced these rules and we still have less insurance policies on the market today than we did in 2023," says Balber.
Balber also says over a million Californians have now been pushed on the FAIR plan — an alternative for homeowners who can’t get coverage in the regular market.
"That means a million Californians can’t buy regular home insurance at a reasonable price," adds Balber, "and that’s really problematic and is a sign that this strategy is not working."
The California Department of Insurance says the strategy is beginning to stabilize the market.
In a statement, deputy insurance commissioner Michael Soller said insurers are committing to stay and grow in California and FAIR Plan growth is slowing.
The department refused to comment on the specifics about the report.