Home Framework California commissioner wants cuts from insurers in new wildfire framework

California commissioner wants cuts from insurers in new wildfire framework

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California Insurance Commissioner Ricardo Lara on Wednesday submitted insurance pricing regulations to the California Office of Administrative Law to recognize and reward wildfire safety and mitigation efforts by owners and businesses.

According to Lara’s office, the settlement is the first in the nation to require insurer rebates for consumers under the Safer from Wildfires framework created by the California Department of Insurance in partnership with emergency preparedness agencies. of State.

The Office of Administrative Law has 30 business days to determine whether the proposed settlement meets the requirements of the State Administrative Procedure Act. Once approved, the text of the settlement will be filed with the California Secretary of State and will become state law.

“My groundbreaking regulations will help more Californians find insurance they can afford,” Lara said in a statement. “It aligns insurance discounts with accelerated fire safety actions by our state emergency officials and local governments. And, most importantly, it will save lives by helping California protect itself from wildfires. »

The regulations incorporate “Safer from Wildfires,” a new wildfire safety measures framework created in January by a partnership between CDI and emergency preparedness agencies in Governor Gavin Newsom’s administration, including including the California Department of Forestry and Fire Protection, the Governor’s Office of Emergency Services, the Governor’s Office of Planning and Research, and the California Public Utilities Commission.

Once approved, the settlement will require all insurance companies to submit new rates that recognize the benefits of safety measures such as improved roofs and windows, defensible space, and community-wide programs such as Firewise USA. and the Fire Risk Reduction Community designation developed by the State Council of Forestry and Fire Protection, which currently includes Los Angeles, Santa Barbara, and Butte counties as well as local cities and districts.

The StrongerCA Coalition, a group of insurers including the American Property Casualty Insurers Association, released the following statement on behalf of APCIA Vice President Mark Sektnan in response to Lara’s regulation.

“The Insurance Commissioner’s regulations will send a strong signal to consumers and businesses to better prepare for extreme wildfires, but more needs to be done to manage the growing risk of climate-induced wildfires. in California while protecting accessibility and affordability of insurance Not only does the mitigation protect homes and properties, but ongoing supply chain delays and inflation are putting additional pressure on homeowners that recover and rebuild after a wildfire, so preventing fire damage is even more critical.

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Carriers California Disaster Natural Disasters Wildfire

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