American Property Casualty Insurance Association: There They Go Again: Self-Proclaimed 'Consumer Watchdog' Report Covers Up Need for Reforms to End California's Insurance Crisis

SACRAMENTO, California, Feb. 3 -- The American Property Casualty Insurance Association issued the following statement Feb. 1, 2024:

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While California's insurance crisis worsens, the publicity hounds at the Santa Monica-based advocacy group Consumer Watchdog today released a self-serving "report" to justify its opposition to needed market reforms being proposed by lawmakers and regulators. Policymakers and stakeholders all agree we are facing a serious crisis threatening consumer access to the insurance they need, and that now is the time to develop serious solutions. Yet, Consumer Watchdog once again fails to offer any solutions.

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Nicole Mahrt-Ganley, Assistant Vice President of Public Affairs for the American Property Casualty Insurance Association (APCIA) said: "Consumer Watchdog has created a self-serving monopoly that has netted the organization tens of millions of dollars - ultimately paid by consumers - with negligible benefits for consumers. They are once again opposing needed reforms to fix the insurance crisis so they can protect their bottom line. It's shameful."

In the "report," the advocates falsely claim "savings" to California consumer while not including key facts:

* Consumer Watchdog inserted a provision in the 35-year old Proposition 103 that has funneled tens of millions of dollars into the coffers of this "non profit" that has no members.

* Consumer Watchdog has received more than 90 percent of the funds from this provision, called the Intervenor Program, during the past three decades. In 2022, itreceived ALL of the funds from the program. Previous insurance commissioners have attempted to broaden the number of recipients without success.

* Consumer Watchdog charges the state upwards $650 per hour and more for its "expertise"

* The California Department of Insurance has the regulatory authority to contest rate increases and does. Consumer Watchdog adds an unnecessary layer that ultimately delays the process and costs consumers.

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The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions-protecting families, communities, and businesses in the U.S. and across the globe.

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View Attachments here: https://www.apci.org/attachment/page/113202/

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Original text here: https://www.apci.org/media/news-releases/release/78795/