California's Proposed Rules for Insurance Companies: Addressing Climate Risks and Homeowners' Insurance Crisis

California Insurance Commissioner Ricardo Lara plans to write new rules aimed at persuading insurance companies to continue doing business in the state. The proposed rules would allow insurers to consider climate change when setting rates and potentially factor in some reinsurance costs. However, insurance companies would still need permission from the state to raise rates. The goal is to encourage insurers to write more policies for homeowners in wildfire-prone areas, with a requirement of at least 85% of their statewide market share. The rules could increase competition and potentially hold rate increases in check, but consumer groups express concerns about potential higher prices for homeowners. The deadline for completing the new rules is December 2024.