Gov. Newsom announced a push to expedite insurance rate approval process to help insurers cope with costly claims from wildfires and climate change. The move aims to prevent insurers from leaving California and ease residents' financial concerns.
Current rate approval process in California can take up to 84 days, potentially longer with public hearings. Newsom's proposed trailer bill could reduce this timeline to 60 days to stabilize the market and provide more options for residents.
While expedited rate hikes may lead to higher bills temporarily, proponents believe it will enhance availability of home insurance in California. This could discourage reliance on the high-premium FAIR Plan, which is struggling financially.
Industry representatives like Denni Ritter commend the move towards faster rate reviews, stating it is crucial to addressing California's insurance crisis. They express readiness to collaborate on further reforms to tackle regulatory challenges.
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