Industry groups back California Commissioner's insurance reform
Robert Miller ; 2025-11-24 03:12:21
Delays, outdated regulations push groups to demand change in the state’s rate approval process
Insurance News
By Insurance Business
Nov 21, 2025Share
A broad coalition of consumer and industry groups has rallied behind Commissioner Ricardo Lara’s insurance reforms, citing the urgent need to address delays and rising costs in California’s market.
In a letter addressed to the commissioner, the coalition said the ‘long overdue’ reforms are crucial to deliver three key outcomes for the state’s insurance market:
- Timely reviews for rate filings
- Consumer-centric regulatory process to curb abusers who profit from delays
- Market stability to help insurers remain on the state and provide more coverage options for consumers
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“California’s insurance market is in crisis. As insurers scale back or exit the state’s insurance market, access to coverage and consumer choice is evaporating - not only for homeowners, but also for small businesses, farmers, builders and housing providers we represent,” the letter read.
“This crisis has halted new affordable housing developments and home construction, forced lenders to walk away from projects, put family farms at risk, and left too many communities and businesses without insurance coverage.”
According to Department of Insurance data, rate filings without third-party intervention took an average of 256 days to review in 2024. When intervenors were involved, the process stretched to nearly 529 days - almost a year and a half, a sharp departure from the 60-day approval period Proposition 103 envisioned.
“At the heart of this crisis is a broken rate approval process - made worse by a flawed intervenor process that Consumer Watchdog wrote into Proposition 103 for its own benefit,” the letter said.
“When Consumer Watchdog delays rate approvals for its own financial gain, insurance premiums fail to reflect the true cost of covering claims.
“This leads to shrinking access to coverage and increased costs for consumers, further straining California’s already struggling insurance market.”
Calls for accountability and stability
Among the list of signatories was Shannon Douglass, president of the California Farm Bureau, who highlighted the strain on wildfire‑prone communities. “The process has delayed rate approvals and driven up costs, making it harder for farmers, ranchers and families to secure coverage,” she said.
Robert Moutrie of the California Chamber of Commerce underscored the broader economic impact, warning that rising insurance costs are hurting employers across the state. “California’s insurance costs are hurting businesses just like they’re hurting homeowners and drivers,” he said.
Meanwhile, Jill Epstein, CEO of the Independent Agents & Brokers of California, pointed to the burden on families and communities. “These reforms are a critical step toward restoring competitive health and stability to the state’s insurance market and ensuring Californians have multiple good options for securing the coverage they need,” she said.
For her part, Debra Carlton, executive vice president of the California Apartment Association, emphasized the consequences for housing affordability. “The affordable housing crisis is exacerbated when timelines for insurance approvals drag on, increasing costs that hurt California families,” she explained.
Here’s a list of the signatories of the letter:
- Jill Epstein, CEO —Independent Insurance Agents & Brokers of California
- Dan Dunmoyer, President and CEO —California Building Industry Association
- Rob Moutrie, Senior Policy Advocate —California Chamber of Commerce
- Debra Carlton, EVP of State Government Affairs —California Apartment Association
- Sanjay Wagle, SVP of Governmental Affairs —California Association of REALTORS®
- Brooke Armour, Executive Vice President —California Business Roundtable
- Matt Dias, President and CEO —California Forestry Association
- Tom Freeley, CEO —California Association of Community Managers
- Peter Ansel, Director of State Policy Advocacy —California Farm Bureau Federation
- Michael D’Arelli, Executive Director —American Agents Alliance
- Louie A. Brown, Jr., Legislative Advocate —Community Associations Institute – California Legislative Action Committee
- Steven Pettersen, President and CEO —Western Insurance Agents Association
- Jenna Abbott, Executive Director —California Council for Affordable Housing
- Susan Milazzo, CEO —California Mortgage Bankers Association
- Cheryl Marcell, Executive Director —Housing Contractors of California
- Robert Rivinius, Policy Director —Family Business Association of California
- Tim Taylor, California Policy Director —National Federation of Independent Business – California (NFIB)
- Matthew Hargrove, President and CEO —California Business Properties Association
- Ray Pearl, Executive Director —California Housing Consortium
- Daniel Hartwig, President —California Fresh Fruit Association
- Kirk Wilbur, Vice President of Government Affairs —California Cattlemen’s Association
- Tracy Hernandez, Founder and CEO —Los Angeles County Business Federation
- Adrian Covert, SVP of Public Policy —Bay Area Council
- Timothy Jemal, CEO —NAIOP SoCa
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