Proposition 103, which became law in 1988, grants the California insurance commissioner the authority to reject proposed rate increases and issue refunds. It has been credited with saving consumers billions of dollars. But the insurance industry argues that it restricts accurate underwriting and pricing of risk.
California Wildfires stress the state
The insurance marketplace in the state is mirroring national trends. Many companies are raising rates, limiting coverage, or completely withdrawing from wildfire-prone regions.
Florida and Louisiana have also faced challenges maintaining healthy insurance markets following significant hurricane damage.
Colorado premiums are on the rise due to wildfire threats. And in Oregon, it was decided not to map wildfire risks because it would cause premiums to surge.
The Western states in the U.S. have become warmer and drier over the past three decades creating more extreme weather conditions. And increasingly frequent and destructive wildfires. California, in particular, has witnessed the largest and most devastating fires in its history in recent years.
