In opposition to the advice of his workers consultants, California Insurance coverage Commissioner Ricardo Lara denied a request from State Farm to inexperienced mild “emergency” fee will increase for insurance coverage coverage holders.
As CalMatters’ Levi Sumagagsay explains, earlier this month the most important insurer for California owners sought fee will increase averaging 22% for owners, 15% for renters and 38% for condominium homeowners. In a letter to Lara, Begin Farm executives mentioned the January Los Angeles County fires would be the “costliest in the history of the company,” and that fee will increase will “help avert a dire situation for our customers and the insurance market” in California.
However Lara rejected the request Friday, citing that he wanted extra data earlier than approving a rise, reminiscent of what the insurer is doing to enhance its funds apart from elevating charges and whether or not its mother or father firm may present help. He referred to as for an in-person “informal conference” with State Farm executives on Feb. 26 on the California Division of Insurance coverage’s workplace in Oakland.
- Larain a letter to State Farm executives: “Customers need real answers about why they are being asked to pay more and what responsibility the company’s leadership is taking to get its financial house in order.”
Levi additionally experiences that as insurance coverage claims from the lethal L.A.-area fires proceed to roll in, the insurance coverage division is publishing by-the-numbers updates. For these retaining observe, the variety of insurance coverage claims for houses and companies has risen to 33,717. Amongst these claims, greater than 19,000 have been partially paid, totaling $6.94 billion as of Feb. 5.
The numbers embody information from particular person insurance coverage corporations and the last-resort FAIR Plan, which efficiently pushed for a $1 billion bailout from non-public insurance coverage corporations. For the primary time, the insurance coverage division additionally launched numbers of auto claims from the fires: 5,597 claims, for a complete of $73 million paid out up to now.
In different financial information: Because the authorized battle over President Donald Trump’s freeze on sure federal funding continues to play out in courts, Levi dives into the issues of California’s small companieswhich account for at the least 29% of jobs within the state.
With $1.15 billion in loans accredited for 2025, California is the largest recipient of loans from the federal Small Enterprise Administration. Some small enterprise homeowners and advocates are skeptical of the Trump administration’s pledge that funding for small enterprise wouldn’t be paused. If a freeze had been to occur, entrepreneurs may have fewer alternatives and sources to begin companies, which may result in fewer jobs.
