California lawmakers passed a bill meant to address consumer complaints about a new method that property insurers in the state are using to set premiums and address an insurance crisis.
Legislation approved Saturday was applauded by consumer groups that have criticized California’s new rate-setting method, which lets insurers use computer models to project future wildfire losses.
The approval is “a huge step forward … for consumers who are incredibly frustrated with having no information about how insurance companies determine their fire risk,” said Carmen Balber, executive director of California-based Consumer Watchdog.
The California Insurance Department recently began allowing property insurers to use wildfire models, which are common in many states but had been barred in the nation’s most wildfire-prone state since the 1980s. The decision aims to address California’s growing property insurance crisis.
