Photo: Mario Cobian/Adobe Stock
With news that the California FAIR plan is levying a $1B assessment on insurers in the state – half of which can be passed on to consumers – insurers, regulators, and consumers will increasingly face a difficult question: How to strengthen the growing instability of the state’s home insurance market, particularly in high wildfire risk areas.
While some solutions have been proposed in the wake of the devastating January wildfires, such as allowing the FAIR plan to borrow or issue debt to cover short-term liquidity needs, the majority of these solutions do not address the underlying fundamental issue: Climate related risks are increasingly becoming both more common and more severe.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
