California Governor Gavin Newsom signed an executive order requesting that the state's insurance regulator take "prompt regulatory action" to correct the state's faltering property insurance market and to consider if emergency regulatory actions are needed.

The executive order, which was signed on Sept. 21, 2023, tasks the California Department of Insurance (CDI) with stabilizing the market by:

• Expanding coverage options, particularly in underserved areas of the state.
• Maintain the solvency of the FAIR Plan by reducing its overall market share in underserved areas of the state and moving policyholders to the admitted market.
• Accelerate implementation of changes by having the California Department of Finance support CDI in the rulemaking process.
• Improving the rate approval process to make it more efficient, fast and transparent. The process should take into account "all factors necessary to promote a robust, competitive insurance marketplace," according to a release from the governor's office.

Carriers in the state have long complained about the rate approval process as it is slow and often unsuccessful, according to Rene Swan, Renaissance Alliance's regional executive vice president, west.