A wide group of consumer and industry organizations is backing new insurance reforms proposed by Commissioner Ricardo Lara to fix delays and rising costs in California’s insurance market. The coalition stressed the need for urgent change, citing growing problems that affect homeowners, small businesses, farmers, builders, and more.
In a letter to Commissioner Lara, the coalition called the reforms “long overdue.” They want faster reviews for insurance rate filings, a fairer regulatory process that stops people from delaying approvals for personal gain, and more stability in the market. These changes aim to help insurers stay in California and offer more coverage choices to consumers.
The group warned that the insurance market is facing a serious crisis. Many insurers are pulling back or leaving the state, reducing access to coverage and choices for families, farms, businesses, and housing providers. The situation is causing new housing projects to halt, lenders to back out, and communities to be left without essential insurance.
Data from the Department of Insurance showed that reviewing rate filings took an average of 256 days in 2024 if no third party intervened. When intervenors got involved, the process stretched to almost 529 days. This is far from the 60 days originally targeted by Proposition 103, which set the rules for rate approvals.
The heart of the problem, according to the coalition, is a broken rate approval process. They singled out the intervenor system, initially added by Consumer Watchdog, claiming it has been used to delay approvals for financial benefit. These delays push up premiums, making insurance harder to afford and harder to get.
Many leaders from California’s farming, business, and housing sectors signed the letter. Shannon Douglass from the California Farm Bureau spoke about the pressure on communities prone to wildfires. Robert Moutrie of the California Chamber of Commerce warned that high insurance costs hurt both businesses and homeowners.
Jill Epstein, CEO of the Independent Agents & Brokers of California, said the reforms will bring healthier competition and stability to the market, helping Californians find better insurance options. Debra Carlton from the California Apartment Association noted that the housing crisis worsens when insurance approvals drag on, driving up costs that hurt families.
Among others signing the letter were industry heads and policy advocates from groups such as the California Building Industry Association, California Association of REALTORS®, California Forestry Association, and the California Fresh Fruit Association.
As California faces these insurance hurdles, the coalition’s call for reform highlights the need to protect consumers and keep the market working well for everyone. Without changes, delays and price hikes may continue to make insurance a challenge for many across the state.