Lara says ‘whole-of-government’ approach needed for insurance stability 

Publisher’s note: According to KCRA.com, California Governor Gavin Newsom signed an executive order today he says is now the next phase in addressing the state’s insurance crisis. By January 2026, several state agencies are to come up with recommendations that could change the financial guardrails California has in place for catastrophes, including in situations when utility companies are blamed for a wildfire. KCRA 3 was the first to report the development Tuesday morning. The executive order specifically calls on the California Department of Insurance and California Public Utilities Commission to help.

“There’s no Republican or Democrat thermometer – red and blue states alike, and countries around the world, are facing this climate-fueled insurance crisis. And California is taking action,” Newsom said in a statement. “Already, we’ve seen positive action to stabilize our home insurance market as insurers submit plans to write policies in areas where Californians have been running out of options. We’re taking a whole-of-government response to protect Californians from wildfire while boosting coverage options and bringing down costs.”

Insurance Commissioner Ricardo Lara issued the following statement after Governor Gavin Newsom’s executive order regarding insurance stability.

“The governor is exactly right: we need a ‘whole-of-government’ approach to keep moving in the right direction. Today’s executive order helps reinforce the progress we are making under our Sustainable Insurance Strategy – real, measurable progress that is bringing insurance options back to Californians and giving hope to communities that felt abandoned.

“Five major insurance companies, including three of our top homeowner’s carriers, have committed to stay and grow in California. That marks a major turning point from past practices under past insurance commissioners where companies raised rates while dropping policyholders.

“I have driven organizational transformation by modernizing California’s Department of Insurance to anticipate risk rather than just reacting to it. Now we are taking that same proactive approach to the statewide level.

“By working with CalFire, CalOES, and other emergency agencies, we can better prepare, respond and rebuild from natural catastrophes and disasters. This will help result in reducing risk, protecting lives, and creating the conditions for long-term insurance availability.

“We have a shared goal helping give every Californian peace of mind that they can recover and rebuild after disaster strikes, no matter their ZIP Code or income level. With the governor’s continued support and partnership, my department will thoroughly review insurance companies’ rate filings to make sure consumers do not pay more than is required to any insurance company or intervenor. And I will continue to hold all insurance companies accountable for paying wildfire survivors what they are owed.”

The governor’s order builds on recent significant progress to addressing California’s property insurance crisis under Lara’s Sustainable Insurance Strategy. Five insurance companies —including three of the state’s homeowner’s carriers — have announced plans to stay and grow in California, marking a major shift in the market from the past when insurance companies increased rates but dropped policies. To maintain momentum, the governor’s order requests the Department of Insurance to work with CalFire and other emergency agencies to develop the first-ever comprehensive report outlined in chaptered SB 254 that will help expedite preparedness and recovery from natural catastrophes.