Five Insurance Companies Commit to Staying in California Amid Wildfire Risk

Governor Gavin Newsom says relief is on the way for California homeowners worried about losing coverage as insurers leave the state.

In a livestreamed conversation with former President Bill Clinton, Newsom confirmed that five major insurance companies will continue operating in California: Mercury Insurance, CSAA, USAA, Pacific Specialty, and California Casualty. The announcement comes after months of uncertainty as many insurers pulled back due to growing wildfire risks and rising costs.

“Two days ago we had our fourth come back in. We had a lot of folks who were leaving the market,” Newsom said, emphasizing that the recent reforms aim to stabilize the industry and provide more security for homeowners.

A spokesperson for the California Department of Insurance said three of the state’s top seven largest homeowners insurers are among those staying. Each of the five companies has requested rate increases of 6–9%, which officials noted is consistent with thousands of adjustments approved by previous commissioners.

The reforms now allow insurers to use catastrophe modeling to assess wildfire risk and set rates accordingly, while also requiring companies to extend more coverage in areas considered high risk.

State leaders say the changes strike a balance between keeping insurers in the market and ensuring Californians have access to the coverage they need, even in regions most vulnerable to climate change-driven disasters.

Credit: CNN Newsource

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