Wildfire-prone California to consider new rules for property insurance pricing
Associated PressSACRAMENTO, Calif. — California will let insurance companies consider climate change when setting their prices, the state’s chief regulator announced Thursday, a move aimed at preventing insurers from fleeing the state over fears of massive losses from wildfires and other natural disasters. On Thursday, California Insurance Commissioner Ricardo Lara said the state will write new rules to let insurers look to the future when setting their rates. We don’t have a viable market right now in this state in a lot of areas.” California isn’t the only state that’s struggled to keep home insurance companies amid natural disasters. Jeremy Porter, a co-author of the First Street Foundation report on climate risk, said allowing insurers to consider climate change in their pricing might lead to more competition in the state’s insurance market.