# California property insurance market stabilization efforts

> Live situation record from CLSTR: https://clstr.news/situations/california-property-insurance-market-crisis
> Updated: 2026-09-25T19:38:14.000Z. Sources: 9. Developments: 3.

California’s property insurance market is showing signs of stabilization following the implementation of Insurance Commissioner Ricardo Lara’s ‘Sustainable Insurance Strategy’. This regulatory shift, which allows insurers to use forward-looking catastrophe modeling and factor in reinsurance costs, has led to reports of companies resuming the issuance of new homeowners policies.

However, the effectiveness of these measures is a point of contention. While the California Department of Insurance views the return of new policies as a success, the advocacy group Consumer Watchdog estimates that only 12,189 new policy commitments have been made since January 2025. Consumer Watchdog further notes that insurers have requested or secured $571 million in rate increases under the new rules. The Insurance Department has disputed these claims, describing the group’s analysis as ‘incomplete and premature’ and stating it will release its own data.

Long-term market stability remains tied to upcoming political shifts. As Commissioner Lara approaches the end of his term, the election for his successor introduces potential changes in regulatory direction. Leading candidates include former San Francisco Supervisor Jane Kim, who supports socializing portions of the market, and former Senator Ben Allen.

## Timeline

### 2026-09-25: California insurers resume homeowners policy issuance under new regulations

California insurers are resuming homeowners policy issuance under new regulations, though advocacy groups question if the volume of new policies is sufficient relative to recent rate increases.

2 sources. https://clstr.news/cluster/california-insurers-resume-homeowners-policy-issuance-under-new-regulations

### 2026-09-22: California home insurance market shows signs of stabilization

California's insurance market is stabilizing under new regulations, though debates continue over the actual number of new policies issued and the political future of the state's insurance strategy.

4 sources. https://clstr.news/cluster/california-home-insurance-market-shows-signs-of-stabilization

### 2026-09-20: California insurance crisis expands to low-risk suburban areas

California's insurance crisis is spreading to low-risk suburban areas, forcing homeowners to use the FAIR Plan or high-deductible surplus lines policies as major carriers withdraw from the market.

3 sources. https://clstr.news/cluster/california-insurance-crisis-expands-to-low-risk-suburban-areas

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Cite as: California property insurance market stabilization efforts. CLSTR, https://clstr.news/situations/california-property-insurance-market-crisis