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Topanga residents hear consumer group’s warning on proposed insurance rule changes; state staff promise a town hall
Summary
United Policyholders told Topanga residents proposed Department of Insurance changes would allow forward‑looking loss models and reinsurance pass‑throughs that could raise premiums; state liaisons said they are arranging a department town hall and urged residents to participate in the rulemaking process.
United Policyholders warned Topanga residents on Monday that a proposed change at the California Department of Insurance could shift insurer rate‑setting from historic loss averages to forward‑looking loss models and permit pass‑through of reinsurance costs, a move some consumer advocates call controversial.
"The commissioner is looking to allow forward‑looking projections of loss from wildfire risk models," said Joel, a United Policyholders representative. He explained that prospective models can produce widely varying results from different modelers and that proprietary 'black‑box' models could reduce public accountability. "I am not personally a fan of this approach," Joel said, while urging the department to consider alternatives such as trending historic losses and using more statewide data.
Joel described how many Topanga residents have been nonrenewed or moved onto the FAIR Plan—California’s insurer of last resort—which provides basic fire coverage but omits common coverages such as water or liability losses. He urged homeowners to inventory personal property and to shop widely for coverage, noting some carriers that have recently resumed writing new business.
Residents asked how Topanga could influence the rulemaking. Joel and state liaisons told the council the Department of Insurance will hold hearings and urged constituents to attend and to contact their state legislators. Araceli, representing Assemblymember Irwin’s office, said the assemblymember is "well aware" of the issue and is pursuing meetings in Sacramento; Nick, from Senator Allen’s office, said the senator’s team is coordinating and referenced several bills related to landslide emergency declarations and other measures being tracked in Sacramento.
Joel also discussed reinsurance costs and suggested options: government‑backed reinsurance as a federal or state backstop, or regulatory caps on insurer expense and profit loadings. He said insurers that can demonstrate they will write a higher proportion of policies in high‑risk areas might be granted relief under proposed changes, but warned the outcome is uncertain.
Local leaders pressed for practical next steps. The county and town council agreed to publicize the Department of Insurance hearing and arrange an in‑community town hall or workshop so residents can deliver firsthand testimony. "There are two ways: they'll hold a hearing, and your elected officials should weigh in," Joel said.
Next steps: the council and state liaisons will share hearing notices and a planned town‑hall date once confirmed and encourage residents to provide testimony and written comments to the Department of Insurance.
