California Regulation Revisions
In order to shore up California’s insurance market and address growing risks of climate change and wildfires, Commissioner Lara announced the Net Cost of Reinsurance in Ratemaking Regulation, which requires insurance companies to increase coverage in high-risk areas and limiting the amount of reinsurance costs that can be passed on to consumers.
The regulation in part requires companies to increase coverage in wildfire-prone regions, ensuring that they write policies for 85% of their statewide market share with annual increases until the threshold is met. Companies are to increase writing in wildfire-distressed areas by 5% every two years until the threshold is met.
Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.