California Department of Insurance outlines sustainable-insurance plan, urges wildfire mitigation

Richie Sayoban of the California Department of Insurance told the Mariposa County Board of Supervisors on Oct. 14 that the department is implementing a multi-part Sustainable Insurance Strategy meant to increase insurance availability and consumer protections in wildfire-prone areas. Sayoban said the package includes approved forward-looking catastrophe models, incentives for wildfire mitigation, and new expectations that insurers maintain coverage in distressed areas.

The presentation said the strategy centers on five priorities: expanding coverage, approving forward-looking catastrophe models (three models approved in August), incentivizing homeowner mitigation actions, modernizing the FAIR Plan, and establishing insurer commitments to write a minimum share of policies in wildfire-distressed areas. Sayoban said the department will require insurers that adopt its reviewed models to ensure they write “no less than 85% of homes and businesses” in defined wildfire-distressed areas, with the goal of reducing FAIR Plan penetration.

Why it matters: Homeowners in many California counties have reported difficulty finding market-rate policies. The department framed the reforms as part of the largest insurance change in decades and said they are intended to increase market stability, protect consumers from sudden nonrenewals, and reward mitigation work that reduces a property's risk score.

What the department told the board: Sayoban described how distressed areas are identified using a mix of zip-code FAIR Plan penetration, an affordability index, county-level measures and pockets of FAIR Plan use. He summarized a legislative package of bills the department supported and said several have been signed into law. He also reviewed the department's "Safer from Wildfires" guidance for individual homeowners and communities (class A roofs, ember-resistant zones, defensible space, Firewise recognition).

Public questions and staff responses: Residents asked whether sheds made of metal must be moved from within 30 feet of a house, whether insurers are now writing policies in Mariposa County, and whether leaving the FAIR Plan for a private carrier creates long-term stability. Sayoban said recommendations about outbuildings depend on combustibility and that consumers should verify coverage with their insurer; he said insurers currently have rate filings under review and that the department oversees market conduct, requires nonrenewal notices with reasons, and provides appeals for consumers who dispute risk scores. County Administrative Officer Joe Lynch joined some answers about data and the development of a public risk model.

Limits of what was said: Sayoban described regulatory changes, model approvals and oversight measures but did not promise immediate specific new carrier offerings for Mariposa residents. He said increased market participation will be monitored and will take time as insurers incorporate models and file rates.