Data released by the California Department of Insurance (CDI) shows that Consumer Watchdog, a Santa Monica-based advocacy organization, received $1,427,280.80 in fees from the state's intervenor compensation program in 2025.
The figure represents 96.78% of the total funds awarded by the department.
The amount is more than double the $643,530.15 Consumer Watchdog received in 2024. The only other recipient of intervenor funds was the Consumer Federation of California Education Foundation, which received $47,500.
Consumer Watchdog has received more than $11.2 million in fees from the program since 2013, according to the American Property Casualty Insurance Association (APCIA). The organization charges upwards of $650 per hour to intervene in insurance rate filings.
The intervenor compensation figures follow Consumer Watchdog's recertification as an intervenor in 2024. In response to the recertification, APCIA stated that Consumer Watchdog "has pocketed tens of millions of dollars abusing the intervenor process, causing delays and disruptions to the insurance market that ultimately harm consumers."
The trade group raised questions about the organization's accountability, noting that Consumer Watchdog has no members and asking who "watches the Watchdog."
The intervenor fee program was written into Proposition 103 by Consumer Watchdog founder Harvey Rosenfield. The program, which is unique to California, allows consumer groups to participate in insurance rate review proceedings and receive compensation for their involvement.
In September, Insurance Commissioner Ricardo Lara proposed changes to diversify the recipients of intervenor program funds. Lara said his proposed reforms "represent another critical step toward building a market that protects consumers, holds insurance companies accountable, and bases rates on facts rather than delays."
A coalition of 24 California industry and consumer groups wrote a letter supporting the proposed reforms. The coalition stated that "for too long self-interested groups have exploited this process to enrich themselves at the expense of homeowners, farmers, and businesses."
Industry groups have linked the intervenor program to delays in rate approvals. Analysis from actuarial firm Perr & Knight found that California's average rate review delay exceeds 100 days for homeowners insurance and 200 days for auto insurance.
Nicole Mahrt-Ganley, assistant vice president for public affairs at APCIA, said the data reflects a longstanding pattern.
"It should be no surprise that Consumer Watchdog has a monopoly on this cash cow in the regulatory process – it literally wrote the law to benefit itself," she said. "This self-serving provision rewards delay over real solutions – and Californian consumers are paying the price, literally."
Consumer Watchdog and the Consumer Federation of California Education Foundation have opposed the proposed reforms.
