California insurers resume homeowners policy issuance under new regulations

Insurance companies are beginning to issue new homeowners policies in California following years of reluctance driven by increasing wildfire risks. The California Department of Insurance suggests that new regulations introduced by outgoing commissioner Ricardo Lara, known as the sustainable insurance strategy, are successfully increasing availability.

Under this strategy, insurers can use prospective catastrophe models and consider reinsurance costs when setting rates. While the state department celebrates companies announcing plans to return to the market, it has not yet released official data on the total number of new policies issued.

Consumer Watchdog, an advocacy group, estimates that only 12,189 new policy commitments have been made since the strategy took effect in January 2025. The group argues this figure is low, noting that insurers have requested or obtained rate increases totaling $571 million under the new regulations. The Department of Insurance has disputed this analysis, calling the group's figures ‘incomplete and premature’ and stating it intends to publish its own data.