Commissioner Lara submits wildfire safety regulation to drive down insurance cost
California Insurance Commissioner, Ricardo Lara, has submitted an insurance pricing regulation to the California Office of Administrative Law that would recognize, and reward wildfire safety and mitigation efforts made by homeowners and businesses.
The regulation is the first in the nation requiring insurance companies to provide discounts to consumers under the Safer from Wildfires framework created by the California Department of Insurance in partnership with state emergency preparedness agencies.
Commissioner Lara commented, “My Department is laser-focused on doing everything we can to protect consumers and hold insurance companies accountable.”
“My groundbreaking regulation will help more Californians find insurance they can afford.”
“It aligns insurance discounts with fire safety actions being expedited by our state emergency leaders and local governments. And, most importantly, it will save lives by helping California become safer from wildfires.”
Mark Sektnan, Vice President for the American Property Casualty Insurance Association, added, “The Insurance Commissioner’s regulations will send a strong signal to consumers and businesses to better prepare for extreme wildfires, but more needs to be done to manage the increasing climate-induced wildfire risk in California while also protecting the accessibility and affordability of insurance.”
“Not only does mitigation protect homes and properties, but ongoing supply-chain delays and inflation put additional strain on homeowners recovering and rebuilding after a wildfire, so preventing fire damage is even more critical.”
The Office of Administrative Law has until October 7th to determine whether the proposed regulation satisfies the requirements of the state’s Administrative Procedure Act.
Once approved, the regulation text will be filed with the California Secretary of State and become state law.
Source: Reinsurance News, https://www.reinsurancene.ws/commissioner-lara-submits-wildfire-safety-regulation-to-drive-down-insurance-cost/