After a summer that saw many of California’s top home insurers pull back from the state market, Insurance Commissioner Ricardo Lara announced Thursday that he struck a deal with the insurance industry to encourage new coverage in the state.
Insurers, Lara said, agreed to return to the high-risk fire zones in the hills and canyons of California in exchange for a number of concessions that will make it easier, in theory, for them to get higher rate increases through the state regulator more quickly.
The announcement comes the week after negotiations in Sacramento over a legislative response to the home insurance market fell apart.
Gov. Gavin Newsom also issued an executive order on Thursday afternoon commanding the insurance commissioner to ‘take prompt regulatory action to strengthen and stabilize California’s marketplace’ and consider whether emergency action could be necessary.