Latest news with #Proposition103
San Francisco Chronicle
a day ago
- Business
- San Francisco Chronicle
California's third-largest home insurer seeks to hike rates
Mercury Insurance, the third largest home insurer in California, submitted a request for a new rate hike on Friday — the first filing to utilize new state reforms that alter how insurance companies can price for wildfire risk. The filing asks regulators to approve a statewide increase of 6.9%, according to the company. The full details of the filing were not available online as of Friday afternoon. In a statement, Mercury said the increase was necessary to compensate for the insurer's exposure to wildfire risk and inflation that drives up the cost of paying claims. Each homeowners' exact rate change will depend on their wildfires risk — some may see increases that are lower than the average, or even decreases; others' rates will rise above the average. The company said it would also be offering new discounts for wildfire mitigation work, such as installing ember-resistant vents or clearing out brush, which could reduce customers' wildfire portion of their premiums by as much as a third. Mercury is the first company to submit for a rate increase under the Sustainable Insurance Strategy, a package of reforms spearheaded by Insurance Commissioner Ricardo Lara aimed at making insurance more available in California. The reforms allow insurance companies to begin using forward-looking models of wildfire risk to influence premiums and to pass along some of the cost of reinsurance — insurance for insurers — to customers. These reforms were widely expected to lead to rate increases, but also come with a requirement for companies to write more policies in high wildfire-risk areas if they don't do so already. Last year, Mercury confirmed to the Chronicle that it would be among the companies that would be required to write more policies under the new regulations. In anticipation of the reforms being finalized, it announced plans to insure more than 200 homes in Paradise (Butte County), the site of the 2018 Camp Fire. Over the past few years, Los Angeles-based Mercury has scaled up its presence in California's home insurance line, rising from the seventh largest home insurer in 2021 to the third largest in 2024 behind State Farm General and Farmers Insurance Group. Over that same period, Mercury has raised home insurance rates four times — a 6.9% increase in 2021 followed by a 12.6% increase in 2023, a 7% increase in 2024 and another 12% increase that went into effect this March. It's common to see insurance companies request rate hikes of 6.9%. That's because under Proposition 103, the 1988 voter initiative that established California's system for reviewing rate hike requests, consumer groups can request a mandatory hearing for requests of 7% and above. Mercury CEO Gabriel Tirador said in a statement that he believed Lara's reforms would successfully stabilize California's home insurance market. 'Our filing is the first step toward Mercury's goal of expanding insurance options for California homeowners and underscores our 60-year commitment to California customers and agents,' Tirador wrote. 'As other companies scaled back their California operations, Mercury stepped up to provide more options for our agents and customers, and we are committed to continuing our efforts to help protect our California neighbors well into the future.' Its filing makes use of a wildfire catastrophe model made by Verisk, one of three such models recently approved for use by the department. The department will now review whether Mercury's usage of the model reliably supports its request for a 6.9% increase. It's the first of many new filings expected now that wildfire models have been approved for use. Not all companies will be required to write new policies under the regulations — some that already insure a significant number of homes in high-risk areas will only be asked to maintain that presence. But Farmers Insurance Group, California's second largest home insurer, has joined Mercury in writing more new policies to prepare for the reforms. Last year, Allstate Insurance, the eighth largest home insurer as of 2024, signaled it planned to begin writing new policies for the first time since late 2022 once it could begin raising rates under the reforms. It has not set a date for this to happen, however. Officials hope private insurers writing more policies will reverse the rapid growth of the California FAIR Plan, the state's insurer of last resort. 'Our goal is for consumers to have more options to find coverage on their own terms instead of FAIR Plan policies that cover less and cost more,' Deputy Insurance Commissioner Michael Soller said in a statement Friday. 'That will continue to be our top priority.'
Malaysian Reserve
4 days ago
- Automotive
- Malaysian Reserve
Consumer Watchdog's Statement On Initiative Filed To Repeal Prop 103'S Consumer Protections
LOS ANGELES, Aug. 12, 2025 /PRNewswire/ — Consumer Watchdog executive director Carmen Balber issued the following statement today: Proposition 103 has been a huge success for California policyholders, keeping insurance rates lower than national averages and holding insurance companies accountable for their actions. The law has saved drivers alone over $150 billion on their auto insurance rates since 1988, according to the Consumer Federation of America. Eliminating Prop 103's consumer protections, including public review and approval of insurance rates and an elected insurance commissioner, would mean skyrocketing rates for home and auto policyholders. We are evaluating the ballot measure recently filed by an insurance agent and see no sign of a serious campaign behind it or the millions that would be necessary to qualify it for the ballot. What we know is that consumers want more, not less, accountability from the insurance industry. Consumer Watchdog polling shows voters overwhelmingly support a plan to require insurance companies to cover all those who fireproof their homes, with 77% in support and 15% opposed – with broad support across gender, party, age, income, residence type and region. See the polling. National polls also show consumers overwhelmingly blame insurance companies for the insurance crisis. A March 2025 poll by Data for Progress and the Insurance Fairness Project found that respondents blame insurance executives for skyrocketing insurance rates, with 85% saying they were 'very' or 'somewhat responsible.' See the polling. Twice in recent history the insurance industry tried and failed to convince the voters to overturn provisions of Prop 103. Proposition 17 in 2010 and Proposition 33 in 2012, sponsored by Mercury Insurance, sought to eliminate Prop 103's prohibition on raising prices on poor drivers who have a break in their insurance coverage. The voters rejected both attempts to eliminate the law's consumer protections. What consumers need now is stronger enforcement of Prop 103's protections against price gouging and collusion, not a free pass to raise rates unaccountably.
Yahoo
4 days ago
- Automotive
- Yahoo
Consumer Watchdog's Statement On Initiative Filed To Repeal Prop 103'S Consumer Protections
LOS ANGELES, Aug. 12, 2025 /PRNewswire/ -- Consumer Watchdog executive director Carmen Balber issued the following statement today: Proposition 103 has been a huge success for California policyholders, keeping insurance rates lower than national averages and holding insurance companies accountable for their actions. The law has saved drivers alone over $150 billion on their auto insurance rates since 1988, according to the Consumer Federation of America. Eliminating Prop 103's consumer protections, including public review and approval of insurance rates and an elected insurance commissioner, would mean skyrocketing rates for home and auto policyholders. Switch Auto Insurance and Save Today! The Insurance Savings You Expect Affordable Auto Insurance, Customized for You Great Rates and Award-Winning Service We are evaluating the ballot measure recently filed by an insurance agent and see no sign of a serious campaign behind it or the millions that would be necessary to qualify it for the ballot. What we know is that consumers want more, not less, accountability from the insurance industry. Consumer Watchdog polling shows voters overwhelmingly support a plan to require insurance companies to cover all those who fireproof their homes, with 77% in support and 15% opposed – with broad support across gender, party, age, income, residence type and region. See the polling. National polls also show consumers overwhelmingly blame insurance companies for the insurance crisis. A March 2025 poll by Data for Progress and the Insurance Fairness Project found that respondents blame insurance executives for skyrocketing insurance rates, with 85% saying they were "very" or "somewhat responsible." See the polling. Twice in recent history the insurance industry tried and failed to convince the voters to overturn provisions of Prop 103. Proposition 17 in 2010 and Proposition 33 in 2012, sponsored by Mercury Insurance, sought to eliminate Prop 103's prohibition on raising prices on poor drivers who have a break in their insurance coverage. The voters rejected both attempts to eliminate the law's consumer protections. What consumers need now is stronger enforcement of Prop 103's protections against price gouging and collusion, not a free pass to raise rates unaccountably. View original content to download multimedia: SOURCE Consumer Watchdog
Politico
07-07-2025
- Business
- Politico
The next big insurance fight headed to California's ballot
Presented by POLITICS OVER POLICIES — Nearly 40 years ago, insurance companies and consumer advocates waged an epic David vs. Goliath battle at the ballot. Now both sides are wondering whether it's time for a rematch. Since its narrow passage in 1988, Proposition 103 has set the rules for insurers doing business in California, requiring an elected insurance commissioner to approve any rate changes. The initiative helped keep the state's insurance rates below many other states, even those with lower cost of living, saving consumers more than $150 billion. But the sight of insurers pulling coverage from risky neighborhoods has threatened that consensus. The rapidly intensifying effects of climate-related disasters — notably the tens of billions of dollars in covered losses due to the Los Angeles wildfires — may ultimately push companies out of the state entirely. 'Times have changed,' said Amy Bach, executive director of United Policyholders, a group which has tried to stake out a middle ground between insurers and more aggressive consumer advocates. 'I'm trying to understand, is this actually hurting at this point? Or are we still helping consumers?' Ideas about returning to the ballot are not circulating solely among those concerned about the cost of homeowners' monthly premiums, or whether they can get a mortgage. At a Sacramento event hosted last week by the Western Insurance Agents Association, a leading insurance lobbyist proposed amending Prop 103 so that lawmakers could change the state's insurance regime without having to go back to voters each time — although he says it was just a thought exercise. 'I floated the idea, but I haven't talked to anyone in the insurance industry about it,' Sam Sorich, the association's vice president for legislative affairs, told Playbook. 'It was just a proposal that I thought someone might be interested in.' Consumer Watchdog, which made its name after overcoming nearly $80 million in industry spending to pass Prop 103, is not ready to leave the 2026 or 2028 ballot to its longtime antagonists. The group has long contemplated an initiative that would require insurance companies to provide coverage to residents who fireproof their homes and to offer written justifications when coverage is denied. 'If they want to start a war, we're happy to finish it,' Consumer Watchdog president Jamie Court said of any insurance industry effort to revisit Prop 103. 'I don't know how they think any ballot measure financed by the insurance industry is going to win.' But Bach, who described her consumer advocacy group as 'less ideological' than Consumer Watchdog, said insurance companies may have a point about Prop 103. The process it established for rate increase approval is too long and arduous, she says, and should be expedited to keep insurance companies in the state. 'We're out here bringing a shit ton of solutions, and you're shooting down every one of them,' Bach said of Consumer Watchdog. 'They will leave, they have left — we're in a new era here, and I don't think they get that.' NEWS BREAK: Death toll in Texas floods rises above 100 … Los Angeles Mayor Karen Bass calls federal immigration agents descending on LA's MacArthur Park 'absolutely outrageous' … Gov. Gavin Newsom, state leaders mark six months since the start of Los Angeles fires. Welcome to Ballot Measure Weekly, a special edition of Playbook PM focused on California's lively realm of ballot measure campaigns. Drop us a line at eschultheis@ and wmccarthy@ or find us on X — @emilyrs and @wrmccart. TOP OF THE TICKET A highly subjective ranking of the ballot measures — past and future, certain and possible — getting our attention this week. 1. $25 minimum wage (San Diego, 2026?): San Diego's business community is preparing to mount a referendum campaign to overturn a $25-per-hour minimum wage for hotel and entertainment workers currently moving through the city council. The looming conflict parallels the labor-versus-tourism industry ballot battle now playing out over Los Angeles's new $30 'Olympic' wage. 2. Minimum wage referendum (Los Angeles, 2026): A probe into the tactics used by the airline-funded petition carriers who delivered 140,000 signatures to the LA clerk's office is heating up. The city council, which approved the wage increase now being challenged at the ballot, last week approved a motion calling on the Los Angeles Police Department and City Attorney to investigate claims of misleading street tactics by the LA Alliance for Tourism, Jobs and Progress (which the group denies). 3. Prop 57 (2016): The movement to revisit a decade-old initiative delivering parole to non-violent criminals is gaining momentum. Relatives of crime victims, who say the measure is being abused to also parole violent offenders, gathered this morning at the Kings County courthouse and are planning a Sacramento protest as potential precursors to a ballot campaign. 'They aren't big media types,' said Andrew Clark, a campaign strategist for where the event was organized. 'They're trying to band together as one voice.' 4. Transit funding (Bay Area, 2026): The proposed switch from a sales tax to one paid by businesses as a funding mechanism for BART system improvements will be debated today by lawmakers. SB 63, which would send the measure to at least three county ballots, is before the Assembly Transportation Committee. The fight there pits transit advocates and system operators, who contend the sales tax is regressive and polls poorly, against the powerful Bay Area Council. Its corporate members would bear the cost of a gross-receipts tax, but also would pony up for the campaign to sell a tax at the ballot. 5. Measure K (San Francisco, 2024): A lawsuit challenging the authority of an initiative that created a new park on San Francisco's coast last year is moving forward in San Francisco County Court. The plaintiff, former supervisor candidate Matthew Boschetto, argues the measure closing a seaside thoroughfare exceeded 'the limited authority given to cities and counties to legislate in the field of traffic control.' The case will be heard in September. 6. Measure ULL (Dublin, 2024): Open-space activists Save Mount Diablo and Friends of Livermore have filed a CEQA lawsuit against Dublin's expanded urban limit line. After failing to get a measure removed from last fall's ballot, the plaintiffs are now arguing in Alameda County Superior Court that the city of Dublin did not consider its environmental impacts before placing the question before voters. A ruling is expected in the next 90 days. 7. Measure ULA (Los Angeles, 2022): The Los Angeles City Council approved a spending plan for the largest tranche of money yet generated by a voter-approved 'mansion tax.' The revenue, from a tiered transfer tax on property sales over $5 million, will be directed toward homelessness programs and the construction and preservation of affordable housing. WHATEVER HAPPENED TO ... INDEPENDENT REDISTRICTING COMMISSION (2010): Advisers to Gov. Gavin Newsom have floated the idea of forcing a mid-decade redraw of the state's congressional districts, an explicit act of partisan gerrymandering to offset a similar push underway in Texas, the Texas Tribune reported late last week. But any effort to do that in California would run up against a seemingly insurmountable hurdle: a pair of citizen-initiated constitutional amendments, promoted by Gov. Arnold Schwarzenegger, designed to insulate the redistricting process from exactly the type of meddling by politicians that Newsom now proposes. In 2008, voters narrowly passed Proposition 11, creating the 14-member California Citizens Redistricting Commission to draw boundaries for state legislative districts. Two years later, Proposition 20 asked voters to extend the commission's authority to U.S. House districts, as well — drawing opposition from the California Democratic Party and then-Speaker Nancy Pelosi. 'One of the criticisms of Props 11 and 20 is that they wouldn't allow California lawmakers to draw district lines meant to increase Democrats in the House,' Loyola Marymount University law professor Jessica Levinson told Playbook. 'The people of California gave the power to draw district lines to an independent commission, and by doing so, took away lawmakers' power to politically gerrymander districts.' That suggests Newsom's idea is a dead letter, little more than an effort to impress Democrats outside California with his instinct for partisan conflict. (It may also explain why his advisers appear to have leaked it to an Austin-based politically-minded news organization and not, say, one based in Sacramento.) ON OTHER BALLOTS The ACLU filed suit in Kansas to block a proposed abortion ban from appearing on the 2026 statewide ballot, arguing it violates the state's single-subject rule because it would also ban transgender health care for minors … Arizona's Republican-led state legislature placed an initiative on the November 2026 ballot to designate drug cartels as terrorist organizations and call on the state's homeland security department to 'do everything within its authority' to combat them, after Democratic Gov. Katie Hobbs vetoed a similar proposal in 2023 … A coalition of environmental groups in Michigan is launching an effort to place an initiative on the November 2026 ballot that would ban corporations with large government contracts from making political contributions to candidates or sitting elected officials … A federal judge in Florida plans to weigh in within the next week on the state's new law restricting the initiative process after hearing more than eight hours of oral arguments on the issue … After failing to gather enough signatures for the 2024 ballot, a Nebraska anti-tax group is launching a new push for a constitutional amendment that would abolish property, income and inheritance taxes in the state … And a special panel appointed by New York City Mayor Eric Adams is drafting at least five measures for the November 2025 ballot, including several that would make it more difficult for the City Council to halt new housing projects and one that would move local elections to even years. MAGIC WORDS SAVE PROP 13 ACT: Attorney General Rob Bonta is due by July 16 to issue title and summary for two constitutional amendments that would make it harder to pass local taxes and fees. Here's our guide to the language each side hopes to see. What the Yes side would like: The amendment's backers want it stressed to voters that the changes they're asking for — raising the voter threshold to two-thirds for various local taxes — are nothing new. Rather, the proposal represents a restoration of the threshold voters passed in 1978, but was changed in 2017 when the California Supreme Court's Upland decision determined citizen initiatives were not covered under Prop 13's definition of 'local government.' 'A fair and objective title and summary would say, 'Restores the two-thirds vote requirement for special taxes contained in Prop 13,' Howard Jarvis Taxpayers Association president Jon Coupal told Playbook. 'That is a factually accurate statement and we would be more than happy with that.' What the No side would like: Anything that ties this measure to last year's failed Taxpayer Protection Act, a broader measure raising the voter thresholds for taxes and fees that the California Supreme Court booted from the ballot. The amendment's opponents were probably cheered by the analysis released last week by the Legislative Analyst's Office estimating that the measure could cause a loss of 'up to a couple of billion dollars' in existing local-government revenue. POSTCARD FROM ... … OAKLAND: For years, former city manager Steven Falk has believed that the greatest problem with Oakland's city government is its org chart. The mayor has no vote on the city council or direct role in policymaking. The city council, in his view, is disconnected from the day-to-day operation of the city. The city attorney is elected, rather than appointed, leading to tension with the council. And perhaps most importantly, the city administrator comes and goes with the mayor, leading to high turnover. 'What occurred to me when I arrived in Oakland in 2020 is that the city organization seemed more dysfunctional than other cities where I had worked,' said Falk, whose résumé includes stops in nearby Richmond and Lafayette. 'And the longer I worked there the more evident that it became that it wasn't the people, but rather the organizational structure that was holding Oakland back.' Since December, Falk's group the Oakland Charter Reform Project has been campaigning for a charter amendment that proposes a 'unitary strong-mayor' system that would resolve those issues by giving the mayor a vote on the city council and potentially a veto, among other changes. In newly sworn-in Mayor Barbara Lee, who listed charter reform as one of her 10 priorities while seeking the office in a special election, he finds an ally at the top of city government. But in order to get a charter amendment before voters, Falk and Lee will have to run a bureaucratic gauntlet in the narrow window before the regularly scheduled mayoral election just a year and a half away. Because charter amendments can only be placed on the ballot during a general election, Falk is aiming for June or November 2026. The problem with November is that the race will also feature elections for mayor, auditor, and city attorney, meaning candidates would be running for positions that would be affected by any proposed charter amendments. But in order to get the amendment on that June ballot, it would need to be in the hands of the city attorney by January, and then formally referred by city council in March. That leaves just five months for Lee to create a task force, allow for community conversation, and write draft legislation. 'It could be done,' Falk said. 'But it's tight.' The alternative is to push the charter amendment vote to 2028 or beyond. But beyond the urgency of fixing a problem sooner rather than later, that timeline also poses the risk of Lee losing reelection — or the mayor, who turns 79 next week, choosing not to seek another term. If the city's next mayor is less amenable to charter reform, Falk's group would have to turn to a citizen's initiative and gather about 50,000 signatures to place the amendment on the ballot. 'It wouldn't be our preference to go to 2028,' Falk said. 'We think Oakland needs improvement now.' THAT TIME VOTERS ... … HEADED FOR RETIREMENT: Californians have seen ballot measures on a wide variety of questions related to the state's retired and elderly residents, including to: Fund pensions for those older than 60 ($100 monthly if unmarried, $150 jointly if married) through a new tax on wholesalers and retailers (1934, did not qualify) … Provide pension payments to aged citizens regardless of their financial ability or relatives', while declaring that receiving a pension will not be considered an 'act of indigence or pauperism' (1940, did not qualify) … Create an Old Age Pension Board appointed by the governor with jurisdiction to conduct baseball and football sweepstakes to finance pensions (1940, did not qualify) … Increase monthly payments to aged people who meet the requirements of the state's welfare code (1954, failed) … Provide medical and hospital care to residents 65-plus, financed with a new state income tax (1961, did not qualify) … Cut benefits from public-employee pensions and raise the retirement age to receive them (2007, did not qualify) … Exempt senior citizens from state income and property taxes (2009, did not qualify) … Increase the retirement age to 65 for teachers, peace officers and other public employees, or to 58 for sworn public safety officers (2011, did not qualify).
Newsweek
27-06-2025
- Business
- Newsweek
California Proposes Major Insurance Reform
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. California Insurance Commissioner Ricardo Lara is pursuing sweeping reforms for California's FAIR plan to stabilize the state's insurer of last resort. In a press release issued on Wednesday, the California Department of Insurance said FAIR Plans' expansion in the last 10 years has revealed "flaws in a system that was never designed to bear the weight it now carries." Under Proposition 103, insurance companies have been allowed to bypass high-risk areas including those prone to wildfires, leaving many homeowners and businesses in the state resorting to the FAIR Plan for coverage. "The FAIR Plan needs to be a temporary option, not the only option," Lara said in the press release. "My top priority is for people to have more choices in a competitive market. And for those unable to find coverage right now, the FAIR Plan needs to provide the services and benefit payouts they deserve, quickly and fully." Why It Matters The reforms come amidst a crisis in California's insurance market, where increasing wildfire risk has led many providers to limit or abandon coverage. The number of policies held on the FAIR Plan, which offers insurance to those who cannot find coverage on the market, has boomed in recent years. As of March 2025, the FAIR Plan's total policies in force is 573,739—a 23 percent increase since September 2024, and a 139 percent increase since September 2021. What To Know Through Lara's Sustainable Insurance Strategy, he is aiming to restore the FAIR Plan to a "temporary solution, not a permanent one," and to give Californians "more options and stronger protections." His reforms include: Expanded coverage : Starting July 26, 2025, the FAIR Plan will temporarily offer high-value commercial coverage—up to $20 million per building and $100 million per location—through 2028, including coverage for HOAs and affordable housing. : Starting July 26, 2025, the FAIR Plan will temporarily offer high-value commercial coverage—up to $20 million per building and $100 million per location—through 2028, including coverage for HOAs and affordable housing. Increased transparency : As of July 1, 2025, the FAIR Plan must publicly report exposures, policy counts, and financial data to inform policymakers and the public. : As of July 1, 2025, the FAIR Plan must publicly report exposures, policy counts, and financial data to inform policymakers and the public. Market stabilization : In response to insurer withdrawals, Lara moved to stabilize the market and on June 23, 2025, urged dismissal of a lawsuit by Consumer Watchdog that he says undermines reform efforts. : In response to insurer withdrawals, Lara moved to stabilize the market and on June 23, 2025, urged dismissal of a lawsuit by Consumer Watchdog that he says undermines reform efforts. Wildfire claims oversight : The Department of Insurance is investigating FAIR Plan responses to smoke damage claims from the Los Angeles wildfires and has directed improvements in staffing and claims handling. : The Department of Insurance is investigating FAIR Plan responses to smoke damage claims from the Los Angeles wildfires and has directed improvements in staffing and claims handling. Operational review : A financial examination report on FAIR Plan operations, based on 2022 recommendations, is expected soon to assess progress on governance and service reforms. : A financial examination report on FAIR Plan operations, based on 2022 recommendations, is expected soon to assess progress on governance and service reforms. New financial tools: Lara has co-sponsored Assembly Bill 226, allowing the FAIR Plan to seek bonds, loans, and credit lines—pending Insurance Commissioner approval—to expand fire insurance access. An aerial view of a mobile home park destroyed by the Palisades Fire on May 7 in Pacific Palisades, California. An aerial view of a mobile home park destroyed by the Palisades Fire on May 7 in Pacific Palisades, California. Justin Sullivan/GETTY What People Are Saying Commissioner Lara said in Wednesday's press release: "Decades of neglect have created a crisis of availability. We want homeowners and business owners to have choices – not just a last resort. We cannot accept the growth of the FAIR Plan as inevitable. My continued reforms create the first-ever requirement for insurance companies to write policies in wildfire-distressed areas if they want to use forward-looking models or the cost of reinsurance in their rates. This is about reforming the limits of Proposition 103 and delivering on the promise of insurance access for every Californian." What Happens Next? Researchers at the comparison website Insurify have estimated that homeowner insurance premiums on the market will continue to rise this year, by as much as 21 percent throughout 2025, with an estimated average annual premium of $2,930, compared to $2,424 paid by California homeowners in 2024.
