Economy

Calif. legislators consider ‘catastrophe modeling’ to address insurance crisis

It is the only state that requires insurers to calculate risk based on historical data.
FILE – A firefighter hoses down hot spots from a home in the aftermath of the Coastal Fire on May 12, 2022, in Laguna Niguel, Calif. (AP Photo/Marcio Jose Sanchez, File)

California lawmakers and regulators are considering letting property insurance companies factor future wildfire risk predictions into their rates, a change insurers say would help them write more policies in the fire-prone state. 

Leaders are under pressure to help homeowners after insurance giant State Farm in May said it would stop writing new policies in the Golden State. Other major insurers, such as Allstate, have also stopped writing new policies anywhere in the state or in certain neighborhoods.

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