Around the PIA Western Alliance States – Week of August 4, 2025

California — Wildfire Catastrophe Models: The California Department of Insurance continued the momentum toward improving insurance options statewide. The Department announced it has completed the review of three forward-looking wildfire catastrophe models, which will help stabilize insurance rates and increase access to coverage.

Companies are already announcing they will expand in the state, helping to ease the insurance availability crisis caused by growing wildfires. 

“For more than 30 years insurance companies have raised rates without guaranteeing coverage or committing to Californians. That ends now,” said Insurance Commissioner Ricardo Lara. “We are on time and on target for bringing insurance options back to all parts of California.”

What it means: Expanding coverage for Californians in wildfire-distressed areas

Under Commissioner Lara’s Sustainable Insurance Strategy, insurers utilizing Department-reviewed wildfire catastrophe models will be mandated to provide and maintain coverage in wildfire-prone areas. This will also assist policyholders in transitioning out of the FAIR Plan and restore consumer options statewide. The Department will begin accepting rate applications from insurers detailing their plans to write and maintain more homeowners and commercial insurance policies in the voluntary market. Mercury Insurance, Allstate, and CSAA were the first to respond that they plan to make filings – with more expected from other insurers.

“Only in California” requirement to write more policies: Wildfire catastrophe models have existed for more than 20 years, and every other U.S. state allows insurance companies to set their rates using this modeling. But California is the only state where insurance companies will commit to writing more policies in higher risk areas under the Strategy.

Thorough review with public input: The Department’s Model Advisor led an extensive and thorough six-month process to vet the integrity of wildfire catastrophe models that was open to public participation. The Department’s regulation provides a focused, transparent, and efficient way for insurance companies to utilize a model in a rate filing. The Department has completed its review of models from Verisk, Karen Clark and Company, and Moody’s – making all three of these models available for use by all insurance companies. View more information at the Department’s website.

Stable and sustainable insurance rates: Unlike public utilities, which are legally obligated to provide service, insurance companies have not been required to offer coverage under Proposition 103. For over 30 years, insurers have increased rates — often with the agreement of intervenors like Consumer Watchdog — without any obligation to remain in the market. Consequently, many insurers raised prices, withdrew from California, and left consumers with limited choices and soaring premiums.

Incentivizing wildfire safety to drive down insurance costs: Under the previous system of historical data, insurance consumers face rate spikes after major wildfires, with no recognition of the billions of dollars spent on wildfire mitigation. Wildfire catastrophe models will reflect the best available scientific data on mitigation efforts for the first time by homeowners, businesses, local communities, state and federal governments, and utility companies – helping drive down the cost of insurance. The Sustainable Insurance Strategy also builds on Commissioner Lara’s Safer from Wildfires regulation that introduced the nation’s first mandatory wildfire insurance safety discounts in 2022.

Staying on time and on track despite Los Angeles wildfires: Commissioner Lara opened the model review on January 2, 2025, which was days before the devastating Los Angeles wildfires. The Department has remained on time and on track while aggressively investigating consumer complaints from the Los Angeles wildfires, resulting in more than $67 million returned to wildfire survivors to date since January.

In statements and social media over the past week, groups representing consumers praised the Commissioner’s progress on implementing reforms:

“Commissioner Lara’s reforms are a much-needed step forward for California homeowners and communities. Modern catastrophe modeling gives insurers better tools to access wildfire risk. This action is a key part of advancing the Commissioner’s Sustainable Insurance Strategy, which we strongly support. Combined with expanded FAIR Plan coverage, these reforms will help restore choice, affordability, and access to insurance across the state.” – Heather Ozur, President of the CALIFORNIA ASSOCIATION OF REALTORS

“California Farm Bureau commends Insurance Commissioner Ricardo Lara for taking decisive action to stabilize California’s insurance market. The state’s insurance crisis poses unique challenges for farmers and ranchers. Without access to insurance, farmers may be unable to invest in the property, infrastructure and equipment they need to grow our food. California Farm Bureau supports the framework established by the California Department of Insurance providing insurers the tools they need to assess current risks and set rates accordingly in exchange for expanding access to coverage. The approval of a catastrophe model for insurance companies in an important step. We look forward to working with the Department of Insurance to ensure agricultural operations and rural communities have access to the coverage they need.” – Shannon Douglass, President of the California Farm Bureau Federation

“One of the groups hit hardest are the independent mom-and-pop rental property owners. Changes take time but if market forces work the way they’re supposed to, more insurers writing policies in CA and balancing supply and demand should lead to more competitive rates.” – Adam Pearce, President of the California Rental Housing Association

“Commissioner Lara’s reforms are a critical step toward restoring a stable and functional insurance market in California. The new catastrophe modeling regulations create a needed, climate-informed regulatory structure that helps insurers and reinsurers better assess wildfire risk and responsibly return to high-need areas. This opens the door for more companies to reenter the market, which is key to bringing back choice and affordability for consumers. For the building industry, it means more opportunities to insure projects and deliver the housing Californians urgently need. Combined with the FAIR Plan’s expanded commercial coverage, these actions support the long-term health of our housing supply, our economy, and the communities we serve.” – Dan Dunmoyer, President and CEO of the California Building Industry Association

“An insurance market that cannot set rates based on the realities of climate change is a market that is not sustainable. This is in part why it is so difficult and expensive for growers and wineries to get coverage. With catastrophe modeling, it is hoped that insurers would be better able to assess future risks and would again offer coverage in the wine country areas that they have left behind.” – Michael Miiller, Director of Government Relations for the California Association of Winegrape Growers

Idaho — DOI publishes preliminary health insurance rates for 2026: The Idaho Department of Insurance (DOI) has received preliminary premium rates from health insurance carriers for plans sold starting January 2026. The DOI is seeking public comments before rates are finalized.

The DOI is reviewing premium rate submissions from health insurance carriers for 2026’s individual and small group plans. These proposed health insurance premium rates are published on the DOI website at https://doi.idaho.gov/consumers/health-insurance/idaho-rate-review/. The average proposed change in premium by location, metal level, and the corresponding 2026 rates by plan, as well as the carriers’ explanations for the changes, are made publicly available for comment. Carriers filed individual market rate changes from 6% to 23%, with an average market change of 10%. Rates for small group health insurance are proposed to increase an average of 11%.

By law, the DOI only has the authority to determine the rates “unreasonable” if the requests are not adequately justified. Final rates will be publicly available October 1, 2025, at the same web address. Idaho is seeing some of the lowest increases in the country, demonstrating the continued stability of Idaho’s market. Idaho is in year three of the five-year Health Innovation 1332 waiver, which resulted in individual market rates in 2025 being 20% lower than they would have been without the waiver. The anticipated impact for the fourth year of the waiver in 2026 is that individual health insurance premiums will be 18% lower than they would be without the waiver.

“Due to the 1332 waiver, the efforts of the Governor and the legislature in avoiding cost drivers, we have been fortunate that the rates over the last 5 years have been stable and competitive,” said Idaho Department of Insurance Director Dean Cameron. “This is the first year, mostly driven by medical inflation, that we have seen a significant increase, albeit one of the lowest in the country.”

The 1332 waiver – combined with the Idaho High Risk Reinsurance Pool – has helped keep Idaho’s individual health insurance market competitive and healthy with rates remaining on average flat since 2021. Additionally, Idaho consumers can choose from 8 health carriers and 158 plans on the exchange (visit Your Health Idaho). Very few states have that many carriers or options.

Comments, questions, or ideas can be submitted via online form at https://bit.ly/4fooFtx or mailed to the following:

2026 Rate Comments

Idaho Department of Insurance

PO Box 83720

Boise ID 83720-0043

The DOI encourages consumers to carefully review all their options with a licensed insurance agent once the final rates are published.

Public Input Requested

Each year, the Idaho Department of Insurance posts rate changes of individual and small group health insurance products so consumers can review and provide comments on the proposed increases.  Insurance companies submit proposed rates for the upcoming calendar year to the Department, along with descriptions and justifications for why the rates are reasonable and not excessive. 

The Department of Insurance is seeking public input for rate changes of individual and small group health insurance products to improve insurer accountability and transparency.  By following the links below, the public can access a summary of the increase amounts and the carrier justifications for the rates.  Please submit any comments to the Department for consideration.

Preliminary Rates - 2026

Please choose one of the categories to proceed:

    Individual 2026 ACA-Compliant Health Plans

    Small Group 2026 ACA-Compliant Health Plans

Review Prior Years

    Individual Plans: 2021, 2022, 2023, 2024, 2025

    Small Group Plans: 2021, 2022, 2023, 2024, 2025

The Department also makes available full data sets of the premiums and benefits of the Qualified Health Plans in the individual and small group markets.  To obtain the Excel workbooks with those data set, see the Department’s Qualified Health Plan Landscape Data.