CA| California Insurance Commissioner Ricardo Lara announced his sponsorship of Assembly Bill 1236, the Local Climate Insurance Pilot Projects Act, which aims to fund innovative insurance programs to help communities—especially low and moderate-income, underserved areas—reduce risks and close protection gaps from increasing climate disasters. The bill, which passed the Assembly Insurance Committee with broad support, would establish a grant program to support projects such as parametric and community-based insurance, nature-based solutions, and community education, all designed to boost resilience and expand insurance coverage options for those most vulnerable to climate impacts.
- AB 1236 creates a grant program to fund pilot projects that reduce risk and expand insurance options for uninsured and underinsured communities, with a focus on low-income and climate-vulnerable populations.
- Supported by a coalition of environmental organizations, insurance industry groups, and academic institutions, the bill promotes nature-based and community-scale solutions—such as wetlands for flood mitigation and urban tree canopies for heat reduction.
- The program will be administered by the California Department of Insurance, with regular reporting to the legislature, and aims to develop scalable, innovative insurance products and educational initiatives to build climate resilience statewide.