CA| The California Insurance Commissioner has taken decisive action to protect policyholders in California amid an insurance crisis exacerbated by recent wildfires. In response to State Farm’s emergency rate increase request, Commissioner Lara has provisionally approved the request pending a public hearing on April 8, 2025, where State Farm must justify the increase with data.
Key Actions:
- Provisional Rate Increase Approval: Commissioner Lara has conditionally approved State Farm’s emergency rate increase request, subject to justification at a public hearing.
- Financial Stability Measures: Lara has urged State Farm to halt non-renewals and seek a $500 million capital infusion from its parent company to restore financial stability.
- Transparency and Oversight: Commissioner Lara is ensuring transparency by requiring State Farm to address questions in an official hearing, aiming to maintain a stable insurance market and protect consumer interests.
Click here to see full March 14, 2025 Press Release