Senator Dodd applauds Commissioner Lara's proposed regulations to address insurance crisis [Times-Herald, Vallejo, Calif.]

Mar. 15—Senator Bill Dodd, representing Napa as a Democrat, released a statement on Thursday in response to Insurance Commissioner Ricardo Lara's proposed modeling regulations to address California's insurance crisis.

"Ensuring the availability and affordability of insurance takes a multipronged approach, and

these proposed regulations are a piece of the puzzle," Dodd said. "There's much to do to stabilize the market, and I thank Commissioner Lara for moving on multiple fronts to tackle the

issue."

Commissioner Lara's proposed regulation will have benefits for Californians. The regulations will

have enhanced rate predictability. These regulations promise more consistent insurance costs

compared to current policies, which have led to sudden and significant hikes for individuals

facing higher wildfire risks.

It also expands insurance accessibility by enabling insurance companies to better forecast future losses, these regulations encourage increased coverage provision. This contrasts with previous practices where insurers might opt to drop higher-risk policyholders, halt new policies, or sharply raise premiums.

It strengthens public oversight of modeling by the Department of Insurance, reflecting the widespread use of such models by insurers nationwide for purposes beyond rate-setting. By

gaining access to these models and building expertise, California aims to maintain its leadership

role in consumer protection.

One of the last things it would do is promote community safety. Catastrophe models can

account for mitigation efforts undertaken by various stakeholders, including government entities,

property owners, communities, and utility companies.

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