A broad coalition of consumer and industry groups has rallied behind Commissioner Ricardo Lara’s insurance reforms, citing the urgent need to address delays and rising costs in California’s market.
In a letter addressed to the commissioner, the coalition said the ‘long overdue’ reforms are crucial to deliver three key outcomes for the state’s insurance market:
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“California’s insurance market is in crisis. As insurers scale back or exit the state’s insurance market, access to coverage and consumer choice is evaporating - not only for homeowners, but also for small businesses, farmers, builders and housing providers we represent,” the letter read.
“This crisis has halted new affordable housing developments and home construction, forced lenders to walk away from projects, put family farms at risk, and left too many communities and businesses without insurance coverage.”
According to Department of Insurance data, rate filings without third-party intervention took an average of 256 days to review in 2024. When intervenors were involved, the process stretched to nearly 529 days - almost a year and a half, a sharp departure from the 60-day approval period Proposition 103 envisioned.
“At the heart of this crisis is a broken rate approval process - made worse by a flawed intervenor process that Consumer Watchdog wrote into Proposition 103 for its own benefit,” the letter said.
“When Consumer Watchdog delays rate approvals for its own financial gain, insurance premiums fail to reflect the true cost of covering claims.
“This leads to shrinking access to coverage and increased costs for consumers, further straining California’s already struggling insurance market.”
Among the list of signatories was Shannon Douglass, president of the California Farm Bureau, who highlighted the strain on wildfire‑prone communities. “The process has delayed rate approvals and driven up costs, making it harder for farmers, ranchers and families to secure coverage,” she said.
Robert Moutrie of the California Chamber of Commerce underscored the broader economic impact, warning that rising insurance costs are hurting employers across the state. “California’s insurance costs are hurting businesses just like they’re hurting homeowners and drivers,” he said.
Meanwhile, Jill Epstein, CEO of the Independent Agents & Brokers of California, pointed to the burden on families and communities. “These reforms are a critical step toward restoring competitive health and stability to the state’s insurance market and ensuring Californians have multiple good options for securing the coverage they need,” she said.
For her part, Debra Carlton, executive vice president of the California Apartment Association, emphasized the consequences for housing affordability. “The affordable housing crisis is exacerbated when timelines for insurance approvals drag on, increasing costs that hurt California families,” she explained.
Here’s a list of the signatories of the letter:
