California Governor Gavin Newsom has signed a new executive order aimed at easing the state’s growing challenges with natural disasters, home insurance affordability, and utility stability. The order pushes various state agencies to work together on finding better ways to handle the costs and recovery efforts from wildfires and other catastrophes. It also seeks to stabilize the home insurance market and energy utilities, while making insurance coverage more accessible and affordable for Californians.
This move builds on Senate Bill 254, which created the state’s Wildfire Fund. That fund supports survivors of wildfires and shields ratepayers from some of the costs linked to utility liabilities. Under SB 254, the Wildfire Fund administrator is required to submit a report by April 2026 exploring new strategies for managing catastrophe responses. Governor Newsom’s order speeds up this effort by directing several departments—including Forestry and Fire Protection, Emergency Services, Energy Infrastructure Safety, the Public Utilities Commission, and the Department of Insurance—to collaborate and share recommendations with the Wildfire Fund administrator.
The California Earthquake Authority (CEA) serves as that administrator. The CEA’s job includes evaluating reforms for California’s insurance and utility sectors and working alongside state agencies on this analysis. The executive order also asks the Department of Insurance (CDI) to review how climate change and natural disasters affect the availability and cost of property insurance. Additionally, the CDI and Public Utilities Commission will look into new ways to share the financial risks tied to major catastrophe damage.
Governor Newsom pointed out that this insurance challenge isn’t limited to any political party or region. “Red and blue states alike, and countries around the world, face this climate-fueled insurance crisis,” he said. He highlighted recent progress, noting that some insurers have started submitting plans to offer policies in areas where people had few options. The governor stressed the importance of a full government effort to both protect Californians from wildfires and make insurance cheaper and easier to get.
California Insurance Commissioner Ricardo Lara agreed with the approach, saying the combined state efforts are making a difference. He noted that five large insurance companies, including three of the top home insurers in the state, have promised to remain in California and even expand their business. Lara described this as a big shift from the past, when insurers often raised rates while dropping customers.
With climate risks growing, this executive order reflects California’s push to create a more reliable insurance system and stronger protections against natural disasters. It shows the state is taking steps to help residents stay covered and recover faster when wildfires and other emergencies strike.