California governor pushes plan to fast-track property insurance rate hikes

By Camille von Kaenel | 05/30/2024 06:29 AM EDT

The proposal, aimed at shoring up the wildfire insurance market, would limit the ways consumer advocates can intervene in the rate review.

SACRAMENTO, California — Gov. Gavin Newsom proposed limiting how much consumer advocates can intervene in the state’s review of property insurance rates in trailer bill language published Tuesday.

Newsom’s goal is to stabilize the spiraling property insurance market by speeding up the Insurance Department’s approval or disapproval of rate hikes, he said earlier this month.

Insurers increasingly have been fleeing the state amid record-breaking wildfire losses and inflation, sending tens of thousands of home and business owners to the state’s bare-bones insurer of last resort.


With the review of rate changes sometimes taking months or years, the companies have also complained about the state’s consumer regulations and the frequent intervention of the nonprofit Consumer Watchdog.