Under the plan, companies will commit to write policies for a certain number of homes in regions of the state considered at greater risk. They will be allowed to use computer models to predict future losses when asking to raise their rates.
"Insurance companies need to commit to writing more policies and my department will need to verify those commitments to hold companies accountable," Insurance Commissioner Ricardo Lara said.
Currently, companies are not allowed to use computer models. They must anticipate claims by looking at the past 20 years, a requirement trade groups argue is obsolete. California is the only state that forces companies to do so.
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