The California Department of Insurance announced that Commissioner Ricardo Lara supports Governor Gavin Newsom’s new executive order on insurance stability, calling it a key step toward protecting homeowners and communities across the state.
“Today’s executive action strengthens the advancements we are making through our Sustainable Insurance Strategy—real, measurable progress that restores insurance options for Californians and instils hope in neglected communities.”
According to Lara, five major insurers, including three leading homeowners’ providers, have committed to staying in California and expanding their coverage.
He contrasted this with past practices, when companies raised premiums while cutting customers loose. “This marks a significant shift,” Lara said, adding that these commitments reflect the results of long-term reforms at the Department of Insurance.
Lara highlighted his department’s modernisation efforts, moving from a reactive stance to anticipating future risks. He explained that the state is now applying this forward-looking strategy across multiple agencies.
By coordinating with CAL FIRE, the Office of Emergency Services, and other partners, Lara emphasised that California is better positioned to prepare for, respond and recover from catastrophic events.
“Our shared goal is to ensure that every Californian has peace of mind, knowing they can recover and rebuild after a disaster, regardless of their ZIP Code or income level,” Lara stated. He also reaffirmed his office’s commitment to closely reviewing insurance rate filings, ensuring consumers are not overcharged, and holding insurers accountable to wildfire survivors.
The Governor’s order builds upon progress already made through Lara’s Sustainable Insurance Strategy. In addition to securing commitments from insurers, the order directs the Department of Insurance to collaborate with CAL FIRE and other agencies to deliver the first comprehensive report required by SB 254. The report is intended to accelerate state preparedness and recovery planning in the face of increasingly severe natural disasters.
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