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Committee approves pilot program bill to broaden insurance tools for climate resilience
Summary
AB 12 36 would establish a Climate and Sustainability Insurance and Risk Reduction Grant Program at the Department of Insurance to pilot insurance approaches that increase coverage and resilience in high‑risk, low‑uptake communities. The committee referred the bill to Appropriations on a unanimous recorded vote.
Assemblymember Celeste Rodriguez’s AB 12 36 received committee approval and was referred to the Appropriations Committee after sponsors and the Department of Insurance described the bill as a pilot program to expand insurance options and resilience measures in communities vulnerable to heat, wildfire, flooding and sea‑level rise.
The measure would create a Climate and Sustainability Insurance and Risk Reduction Grant Program at the Department of Insurance to fund pilot projects that test innovative insurance mechanisms—such as community‑based insurance, parametric insurance and nature‑based solutions—targeted at areas with low insurance uptake and high climate risk. The sponsor and the Department said the program implements recommendations from the 2021 Climate Insurance Report produced by the California Climate Insurance Working Group.
Jesse Finfigura and Michael Peterson, deputy commissioners at the Department of Insurance, said pilot projects would focus on proof‑of‑concepts to expand options for renters, homeowners and small businesses, with particular attention to disadvantaged communities where insurance uptake is low. "Insurance plays a critical role in the recovery from climate disasters, but many households and small businesses do not have sufficient coverage to fund repairs and to rebuild," Finfigura told the committee.
Supporters in the room included climate and conservation organizations and several industry groups; no lead opposition testified. The committee recorded the vote and the bill was certified out of committee on a 17–0 tally.
If enacted, AB 12 36 would authorize the Department of Insurance to design, solicit and award grants for pilot projects and report outcomes as required by the program design and statute; the bill text would determine eligible recipients, selection criteria and any appropriation or fund source. The Department said it has already run related pilots addressing flood and wildfire coverage and intends the program to build on that work.
AB 12 36 now advances to the Appropriations Committee for fiscal review and possible budgetary considerations.
