The reforms were dubbed the “Deregulation Agreement with Insurers”.
disaster and flood
By Mika Pangilinan
California voters oppose proposed reforms that would give insurance companies more leeway to set their rates in exchange for insuring homeowners in areas with higher wildfire risk, according to a poll conducted by Consumer Watchdog. .
Survey results show that voters oppose the plan by a margin of 2 to 1, with 62% expressing their disapproval, while 30% are in support.
Additionally, it was found that only 9% of voters expressed “strong” support for the Insurance Commissioner’s initiative.
California Insurance Commissioner Ricardo Lara plans to implement a reform package that includes a rule requiring insurers to return to wildfire risk areas up to a certain threshold equal to 85% of their statewide market share. . In turn, these insurers will be able to use catastrophe risk models and consider reinsurance costs when setting their rates.
Under Proposition 103, which was authored by Consumer Watchdog founder Harvey Rosenfield, insurers are required to get prior approval before adjusting their rates.
Voters “want more regulation, not less”
Despite opposition to Lara’s planned reforms, California voters acknowledged the need for some type of strategy to address issues related to wildfire risk and insurance coverage.
According to the commissioned survey, what voters want is a mandate similar to legislation previously introduced by Senator Mike McGuire that would require insurance companies to extend coverage to homeowners who invest in fireproofing their properties. .
Consumer Watchdog reported that this option received support from 77% of respondents, while only 15% expressed opposition.
Additionally, the survey indicates that 55% of voters support the idea of denying insurance companies the right to sell car insurance in California if they refuse to sell homeowners and renters insurance to customers, while 30% % oppose such a measure.
“The survey shows that Commissioner Lara’s plan runs counter to the will of California voters,” Jamie Court, president of Consumer Watchdog, said in a news release. “Voters clearly believe that the answer to the problems in the home insurance crisis is more regulation, not less.
Consumer Watchdog used FM3 Research to conduct the survey. The firm surveyed more than 600 potential November 2024 voters from October 26 to October 30.
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