Homeowners' insurance

The reforms are working for claims filed after December 2022, but attorneys are still litigating claims filed prior to the legislation.

At a Tuesday hearing, California's assembly committee on insurance quizzed insurance commissioner Ricardo Lara on the finer points of his sustainable insurance plan.

The 2024 budget increases net operating expenses to $40.2mn, up from $35.2mn in the 2023 budget.

It is understood that the cuts are based on a review of five-year loss ratios, and that agents above 70% will be impacted.

The ratings agency also downgraded carrier’s Long-Term Issuer Credit Ratings (Long-Term ICR).

Personal auto carriers risk falling behind in the battle between loss costs and approved rate declines, while homeowners carriers’ double-digit filings might not be enough to keep up.

Reciprocals have been cropping up more recently, with a shift toward cat-exposed lines, giving investors a quick way to tap into the hard market with an expectation of a rich multiple at exit.

The state is already experiencing affordability challenges, and regulators are concerned that an availability crisis is brewing.

The ratings agency cites ongoing deterioration in results for personal auto and homeowners’ lines, along with rising loss costs, driven by inflationary pressures.

The Senate Budget Committee, chaired by Democratic Senator Sheldon Whitehouse, is seeking information on plans to address increased underwriting losses from extreme weather events.

Cedeño Camacho will expand his insurance carrier holdings to North America.

Carriers have sought to restore profitability through a mix of rate hikes, policy restrictions and localized non-renewals and moratoriums on new business.