California’s Insurance Crisis — An Insurer Gets a Hefty Rate Hike in California — But it’s Pets, not Property

The California Department of Insurance has said yes to a 29% rate hike for Trupanion. The pet insurer will be able to implement the increase in late July. This comes in addition to the 12% increase granted to medical coverage for dogs and cats last year.

The question on everyone’s mind is when will homeowners insurers see rate increase changes in California?

AM Best says in July. The change in July will allow insurers to include reinsurance costs in their rate filings. Of course, there is an asterisk that goes with the change. To get that allowance, the insurer must agree to cover areas in the state with high wildfire risk and do what they can to help reduce the number of homeowners using California’s insurer of last resort, the FAIR Plan.

In the meantime, California Insurance Commissioner Ricardo Lara hopes to have all of his reforms completed by the end of the year. He would prefer doing them himself rather than have the Legislature step in an do the changes.

While insurers are hopeful Lara will come up with a workable plan, California’s Consumer Watchdog is pretty sure he won’t. In fact, the group’s executive director, Carmen Balber released a video last week stating that Lara’s plan is a win for insurers and a big loser for consumers.

“California Insurance Commissioner Ricardo Lara cut a deal with the insurance industry, one that he says will get them selling more home insurance in California,” Balber said in the video. “But internal documents Consumer Watchdog obtained under the Public Records Act show that the deal is a bait and switch on consumers that won’t get a single new homeowner covered.”

The video says Lara is giving the insurance industry everything it wants in order to get it to start selling homeowners policies again.

Here is the link to the video:  https://www.youtube.com/watch?v=YzL2CiN8yRQ

Source link: Insurance Business America — https://bit.ly/44YFN3S

Source link: Insurance Business America — https://bit.ly/3UTBlih

Source link: Insurance Business America — https://bit.ly/3RiqxJB

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