SENATE INSURANCE COMMITTEE WILL
COME TO ORDER I'M GLAD TO SEE SO
MANY OF YOU HERE INTERESTED IN
THIS VERY IMPORTANT TOPIC THANK
YOU FOR JOINING US HERE TODAY.
FOR INDIVIDUALS WISHING TO
PROVIDE PUBLIC COMMENT AT THE
END OF THE PARTICIPANT NUMBER IS
. 877-226-8163 AND THE ACCESS
CODE IS. FOUR THREE NINE EIGHT
THREE ONE EIGHT AND AS A
REMINDER WE WILL MAINTAIN
DECORUM DURING THE HEARING AS IS
CUSTOMARY AND ANY INDIVIDUAL
THAT IS DESTRUCTIVE MAY BE
REMOVED FROM THE REMOTE MEETING
SERVICE TO. AND THEIR
CONNECTIONS WILL BE MUTED SOME
OF THE PANELISTS HERE TODAY ARE
JOINING US REMOTELY. FIVE AS A
REMINDER TO THEM PLEASE ON MUTE
WHEN YOU'RE READY. THIS WILL
GREATLY ALSO EIGHT AND ELIMINATE
ELIMINATING ACOUSTIC FEEDBACK IF
YOU TURN OFF ALL YOUR COMPUTERS
AND STUFF FELONS. R. I. T.
PERSONNEL WILL PUT YOU BACK ON
MUTE WHEN YOU ARE DONE. ONCE YOU
ARE RECOGNIZED TO SPEAK MAKE
SURE THAT YOU CAN BE SEEN ON
SCREEN STATE YOUR NAME CLEARLY
AND THEN YOU'RE READY TO ADDRESS
TO COMMITTEE FOR TODAY'S HEARING
WE WILL BE HEARING BOTH PANELS
OF WITNESSES ON THE AGENDA PRIOR
TO TAKING ANY PUBLIC COMMENT WAS
WE HAVE HEARD ALL OF THE
WITNESSES WE WILL ADVISE THOSE
WISHING TO SPEAK TO CALL IN AND
GET IN THE QUEUE. SO NOW THAT
WE'VE GOT ALL THE TECHNICAL
INFORMATION OUT OF THE WAY-
THANK YOU ONCE AGAIN TO ALL OF
YOU HERE THIS MORNING I KNOW
ITS- IT'S A BIT BUSY DAY SO
THANK YOU WE APPRECIATE YOUR
TIME. FIVE AND WE KNOW THAT IN
RECENT YEARS CALIFORNIA'S
GROWING NATURAL DISASTERS REYES
HAS CREATED CHALLENGES FOR ITS
INSURANCE MARKET AS
CHARACTERIZED. BY THE RISING
PREMIUMS AND DEDUCTIBLES
DECLINE. OF COVERAGE AND
SOMETIMES NON RENEWALS THIS
HEARING IS INTENDED TO PROVIDE A
BROAD BASED HIGH LEVEL UPDATE ON
THE CURRENT STATE OF
CALIFORNIA'S MARKET. INCLUDING
ONGOING AVAILABILITY AND
AFFORDABILITY CHALLENGES AND
DISCUSS OPPORTUNITIES TO IMPROVE
CONSUMER ACCESS AND ENSURE LONG
TERM MARKET STABILITY. AS MORE
CATASTROPHIC. NATURAL DISASTERS
CONTINUE TO OCCUR. WELCOME ONCE
AGAIN TO OUR OVERSIGHT AN
INFORMATIONAL HEARING OF THE
SENATE COMMITTEE ON INSURANCE.
WE ARE HERE TODAY TO LISTEN TO
TESTIMONY. ON SOME OF THE
CHALLENGES THAT OUR CONSUMERS
ARE FACING BUT ALSO IN THIS OVER
SPACE HERE HEARING WILL ALSO
PROVIDE AN OPPORTUNITY TO ASSESS
WHAT'S WORKING. WHAT'S NOT
WORKING AND GET INPUT FROM
STAKEHOLDERS TO SEE HOW WE CAN
IMPROVE THE AVAILABILITY ABILITY
AND AFFORDABILITY FOR CONSUMERS.
AS WELL AS STRENGTH IN THE
INSURANCE MARKET. LET ME BEGIN
BY THANKING ALL OF OUR PANELISTS
WHO JOINED US HERE TODAY. ONCE
AGAIN OUR FIRST- GROUP OF
PANELISTS WILL BE JOINING US
REMOTELY AND WILL HAVE THE
SECOND PANELIST. JOIN US HERE
PERSON. OUR OPENING PANEL
CONSUMERS WILL DESCRIBE THEIR
HARDSHIPS FRUSTRATIONS AND
CONCERNS WITH OBTAINING AND
MAINTAINING COVERAGE- AND ALSO-
SHARE WHAT'S HAPPENING IN THE
CURRENT MARKET OUR SECOND PANEL
SPEAKERS WILL SHARE INFORMATION
ABOUT THE CURRENT STATUS OF
INSURED. UNDERINSURED AND NON
RENEWAL POLICIES AND DISCUSS
BOTH SHORT AND LONG TERM TRENDS
IN THE MARKET. AS WE WILL HEAR
PEOPLE AREN'T MOVING AND TO
RESPOND AREAS BROADLY REFERRED
TO AS A WILDLAND URBAN
INTERFACE. AND AS ONE OF THE KEY
FACTORS DRIVING SOME OF THE
STATE'S INSURANCE MARKET
CHALLENGES MORE PEOPLE HOMES
BUSINESSES AND INFRASTRUCTURE IS
LOCATED IN THE WE- MEANS MORE
COSTLY DAMAGE WHEN IT STREAMED
EVENTS OCCURRED. CALIFORNIA HAS
ROUGHLY FIVE POINT ONE MILLION
HOMES AND A NUMBER THAT IS
RAPIDLY RISING AND THE WEAK
AREAS THESE AREAS ARE OFTEN ON
THE OUTSKIRTS OF CITIES WHERE
HOUSES AND OTHER DEVELOPMENTS
ARE BUILT NEAR. A FLAMMABLE WILD
VEGETATION WELL THERE IS NO
SINGLE REASON TO EXPLAIN THE
RIGHTS OF DEVELOPMENT IN THE
WOULD BE THOSE WHO LIVE THERE
TEND TO BE SOCIAL ECONOMIC A
SOCIAL AND ECONOMIC MIX OF
PEOPLE INTERESTED IN LIVING
CLOSER EITHER TO NATURE. OR
THOSE WITH FAMILIES WHO CANNOT
AFFORD TO LIVE IN CITY CENTERS
AND OUR RESIDENTS OF LITTLE
TOWNS THAT HAVE EXISTED FOR MANY
MANY YEARS AMONG OTHER THINGS.
UNFORTUNATELY WHEN DISASTERS
STRIKE THAT TEND TO INFLICT MOST
OF THEIR DAMAGE AND THERE AND
THOSE TRANSITIONAL ZONES WERE
HOMES AND BUSINESSES AND COACH
AND OTHERWISE AND DEVELOP. A
WILDERNESS FOR CALIFORNIANS
LIVING IN THESE AREAS INSURANCE
CAN BE CRITICALLY IMPORTANT.
CRITICALLY IMPORTANT TOOL TO AID
IN POST DISASTER RECOVERY SO
TODAY WE WILL KICK OFF WITH- A
GROUP OF FOLKS WHO HAVE BEEN
EXPERIENCING SOME CHALLENGES-
AND THAT IS- WE WANTED TO TAKE A
MOMENT TO YOUR FROM CONSUMER.
AND REALLY UNDERSTAND SOME OF.
WHAT THEY'RE DEALING WITH AND WE
HEAR IT ALL THE TIME AS SOME OF
MY COLLEAGUES ALSO BRING THE
STORIES TO ME- ARE FOR SPEAKERS
WILL INCLUDE LISA MAYER A
HOMEOWNER. FROM THE HIGH
DISASTROUS REGION OF SANTEE
CALIFORNIA WE HAVE JANET HAYES
BOARD MEMBER OF HORIZONS HOME
ASSOCIATION AND ANNAMITE ANAHEIM
HILLS. AND GARY THOMPSON CHAIR
OF THE HORIZONS HOME
ASSOCIATION. AND THE INSURANCE
COMMITTEE ALSO WITH US TODAY IS
IRENE SUBMARINE A LICENSE
PERSONAL LICENSE AGENT WITH HUB
INTERNATIONAL INSURANCE
SERVICES. AND FINALLY PETER
NEESON OF NEESON VINEYARDS AND
THE PRESIDENT OF NAPA COUNTY
FARM BUREAU. NOW LET'S BEGIN
WITH THE FIRST PRESENTER HI LISA
MAHER AS SHE- ONBOARD. PLEASE
LOOK WHENEVER YOU'RE READY YOU
MAY PROCEED THANK YOU FOR
JOINING US. THE CITY MY NAME
FIRST IT'S LISA MYERS SO GOOD
MORNING MEMBERS OF THE
CALIFORNIA STATE SENATE
COMMITTEE ON INSURANCE. MY NAME
IS LISA MEYER AND I AM A
RESIDENT OF THE CITY OF SANTEE
LOCATED IN SAN DIEGO COUNTY. MY
TOWN HALL WAS BUILT IN TWO
THOUSAND SIX AND IS LOCATED
WITHIN A HOMEOWNERS ASSOCIATION
OF A HUNDRED AND EIGHTY SIX.
PRIVATELY OWNED UNITS I AM ALSO
THE CURRENT PRESIDENT OF OUR H.
AWAY AND HAVE BEEN A MEMBER OF
THE BOARD FOR MANY YEARS. THE
PROPERTY INSURANCE TEAM BY THE
H. AWAY. IS THE INSURANCE POLICY
FOR ALL BUILDING STRUCTURES AND
COMMON AREA PROPERTY WITHIN THE
COMMUNITY INCLUDING THE WALLS
THAT MAKE UP THE HOME I LIVE IN.
INDIVIDUAL OWNERS ARE NOT ABLE
TO OBTAIN THEIR OWN INDIVIDUAL
PROPERTY INSURANCE EXCEPT FOR
THEIR PERSONAL BELONGINGS AND
FINISHES WITHIN THEIR UNIT. OUR
COMMUNITY HAS BEEN STRUCK BY
WHAT I WOULD CONSIDER AN
INSURANCE CRISIS IN CALIFORNIA.
I COME TO YOU TODAY TO SPEAK OF
THE DIRECT IMPACT IN THIS HOUSE
ON INDIVIDUAL OWNERS. DURING OUR
H. AWAYS LAST INSURANCE RENEWAL
WE WERE NOTIFIED THAT WE WOULD
NOT BE RENEWED DUE TO PROXIMITY
TO HIGH FIRE RISK AREAS. OUR
COMMUNITY IS NOT DIRECTLY
LOCATED IN A FIRE RISK AREA KERN
COUNTY OR CITY FIRE MAPS. AFTER
A LONG SEARCH OUR CURRENT
BROKER. AS WELL AS ANOTHER. AND
AS WELL AS A NUMBER OF OTHER
BROKERS CONTACTED WERE UNABLE TO
PLACE PROPERTY INSURANCE OUR
COMMUNITY. AT SCHOOL PROPERTY
LIMIT. OR A REASONABLE PREMIUM.
OUR PROPERTY EXPOSURE IS
APPROXIMATELY SIXTY FOUR MILLION
DOLLARS BUT WE WERE LEFT WITH
ONLY ONE OPTION. TO PURCHASE TEN
MILLION OF INSURANCE COVERAGE.
AN ANNUAL PREMIUM OF TWO HUNDRED
AND NINETY THREE THOUSAND
DOLLARS. PLUS ADDITIONAL. STATE
TAXES AND FEES. IT COMPARISON.
ARE EXPIRING POLICY INSURANCE
PREMIUM WAS LESS THAN FIFTY FOUR
THOUSAND DOLLARS ANNUALLY FOR
FULL COVERAGE. NO PREFERRED
KERRIER WOULD EVEN PROVIDE A
QUOTE AND WE ONLY RECEIVED THAT
ONE QUOTE FROM THE SURPLUS
MARKET. WE WERE LEFT WITH THE
ONLY OPTION WHICH WAS SKY HIGH
PREMIUMS. ARE DEDUCTIBLE TEN
TIMES OUR PRIOR DEDUCTIBLE. AND
SIGNIFICANT LIABILITY EXPOSURE.
THIS RESULTED IN AN EMERGENCY
ASSESSMENT. EACH UNIT OWNER TO
COVER. THE COST OF THAT NEW
PREMIUM AMOUNT. ASSOCIATIONS
MONTHLY AS WAS PRETTY TO HUNDRED
AND SEVENTEEN DOLLARS OF THAT
ABOUT TWENTY FOUR DOLLARS WAS
ATTRIBUTED TO THE COST OF ALL
INSURANCE FOR OUR COMMUNITY. NOW
EACH OWNER IS SPACE TO SPEND AN
ADDITIONAL HUNDRED AND THIRTY
CLASS PER MONTH. JUST FOR
PROPERTY INSURANCE. ARE OWNERS
OF LOST POTENTIAL HOME SALES AND
HAVE IN SOME CASES HAD TO FIND
OTHER MEANS TO PAY FOR THIS
ADDITIONAL EXPENSE IN AN ALREADY
TIGHT. ECONOMY OWNERS ARE
LOOKING TO START PROTECTIONS
REACHING OUT TO LOCAL GOVERNMENT
OFFICIALS AND ASKING THE BOARD
TO JOIN AND EXPLORE ALL OPTIONS.
WHAT MAKES THE MOST SCARED IS
I'VE HAD RECENT DISCUSSIONS OR
BROKER AND INDUSTRY EXPERTS AND
THE PREDICTION IS THAT IT WILL
BE EVEN WORSE FOR OUR NEXT
RENEWAL. I'M TERRIFIED JUST HE
WHAT WORST COULD POSSIBLY LOOK
LIKE WHAT DO WE DO THEN. I'M
ASKING THE DEPARTMENT OF
INSURANCE TO INVESTIGATE THIS
MARKET CONDITION THAT IS
PLAGUING OUR COMMUNITY AS WELL
AS OTHERS IN CALIFORNIA. I AM
AWARE THERE ARE A NUMBER OF
INDUSTRY ORGANIZATIONS WORKING
TO RESOLVE THIS INDUSTRY CRISIS.
AND I IMPLORE YOU TO REACH OUT
TO THEM FOR A SOLUTION. THE
CURRENT STATE CANNOT BE
SUSTAINED WITHOUT DAMAGING THE
FINANCIAL CONDITION OF OUR
COMMUNITY IS. A ON THE DAILY
LIVES OF OUR RESIDENTS AND THEIR
FAMILIES. IS YOUR THE CONTINUED
STATE WILL AFFECT OUR COMMUNITY
AND OTHERS LIKE IT. TO THE
POSSIBLE POINT OF BANKRUPTCY.
THANK YOU FOR YOUR TIME THIS
MORNING AND THE OPPORTUNITY TO
BE HERE. THANK YOU SO MUCH FOR
YOUR TEST. IN AN EXCELLENT JANET
HAYES WITH GARY THOMPSON BOTH
WITH RISING HOME ASSOCIATION OF
ANAHEIM HILLS AND THEY WILL
DESCRIBE SOME OF THE CHALLENGES
THAT THEY'RE FACING AND
OBTAINING AFFORDABLE COMMERCIAL
POLICIES FOR THEIR EIGHT TWO
EIGHT TWO TO. THEIR LOCATION
WHEN YOU'RE READY IN THIS CASE
YOU MAY BEGIN. GOOD MORNING
LADIES AND GENTLEMEN OF THE
COMMITTEE THANK YOU FOR INVITING
US TODAY. AND TAKING THE TIME TO
LISTEN TO WHAT WE HAVE TO SAY.
FOR MY MYSELF AND MR KERRY
THOMPSON ARE FROM THE CITY OF
ANAHEIM SH AND LIVED IN THE PLAN
COMMUNITY. AND KILTS. OUR
COMMUNITY. WITHIN THAT GROUP IS
HORIZONS. AND WE ARE WITHIN THE
ANAHEIM HILLS HILLS PLANNED
COMMUNITY ASSOCIATION. ARISES
HAS A HUNDRED AND TWENTY FIVE
UNDER UNITS. SINCE WE LIVE IN A
HILLY AREA WE ARE DEEMED BY THE
INSURANCE COMPANIES AS. HIGH
RISK FIRE. OUR HE SHOULD BE
NOTED THAT EITHER THE NINETEEN
NINETY THREE YOUR BILL LINDA
WILDFIRE. NOR THE TWO THOUSAND
SEVENTEEN FIRES WHICH WAS EAST
OF US IN DANGER HORIZONS. IT
MAKES LITTLE SENSE THREE YEARS
LATER. AFTER NO FIRES THE MASTER
POLICY PREMIUMS WENT UP BY A
FACTOR OF FOUR. OR THREE HUNDRED
AND 20% IT'S IMPERATIVE THAT
CALIFORNIA WERE TO INCLUDE HOAS
IN THE FAIR PLAN FOR FIRE AND
PROPERTY INSURANCE ADDED
INCREASED BENEFIT LEVEL THAT
WILL MAKE US ELIGIBLE FOR
COVERAGE. AND AT THE SAME TIME
MONITOR INSURANCE COMPANIES IN
SUCH A WAY THAT THEY'RE NOT
PRICE GOUGING. REFUSING COVERAGE
AT A REASONABLE RATE OR AS IN
MANY CASES WE JUST HEARD-
DENYING COVERAGE COMPLETELY. AS
MISTER THOMPSON WILL EXPLAIN WE
RECEIVED TWO OFFERS OF COVERAGE
WAS BOARDED IT CRISIS ALONG WITH
MANY DENIALS. THIS IS NOT A
TYPICAL. H. AWAY DUES CANNOT.
CANNOT. HOWEVER THESE FEES AND
STILL MAINTAIN THE EXTERIORS
FOOTBALL CONDOS WHICH OFTEN
MEANS TERMITE IN SHOULD IT
CHOOSE ROOFING AND STREET REPAIR
AS WELL AS PAYING FOR
LANDSCAPING POOL COSTS AND OTHER
UP SHE- WHEN INSURANCE IS SO
HIGH MAINTENANCE CANNOT BE
MAINTAINED. IN THE PROPERTY
VALUES ARE DEGRADED. OR IF H.
ALWAYS HOT FOR UNDER INSURERS
FIRST LENDERS MAY BE UNWILLING
TO PROVIDE MARKETS. AS A RESULT
HOAS HAVE HAD TO RETURN TO
SPECIAL ASSESSMENTS. THERE'S
ANOTHER ELEMENT TO THE SITUATION
HOAS FIND THEMSELVES IN A CATCH
TWENTY TWO POSITION. THE
INSURANCE COMPANIES WANT THE
HARDENING OF THE FIRE HARDENING
IN ORDER TO PROVIDE LOWER
PREMIUMS BUT THEY'RE CHARGING
HUGE AMOUNTS FOR INSURANCE THE
HOAS. WANT TO FIRE HARD. HEY TO
PAY THOSE SUCCESS FEES AND
THEREFORE TO FIRE HARDEN AS THEY
LIKE TO. JEFF IN ORDER TO PAY
THESE ENSURE RATES HOAS HAVING
TO INCREASE MONTHLY DUES AT A
LONG CAN DO THAT ALONG WITH
LEVERING SPECIAL ASSESSMENTS.
AGOA BOARDS ARE ALSO HOMEOWNERS
AND THIS IS NOT SOMETHING THEY
WANT TO DO BUT THEY HAVE LITTLE
CHOICE. LOWER RATES AND INCREASE
FIRE HARDENING WOULD BENEFIT
EVERYONE ACROSS THE STATE. AS IT
STANDS THIS SITUATION IS
UNSUSTAINABLE. TO GIVE YOU AN
IDEA OF WHAT WE'RE TALKING ABOUT
IN OUR AREA WHICH IN TWENTY
TWENTY HORIZONS THIRTY NINE
THOUSAND DOLLARS FOR PROPERTY
AND FIRE INSURANCE. THIS YEAR WE
ARE GOING TO PAY OUT FOUR
HUNDRED AND SEVENTEEN THOUSAND
DOLLARS PLUS INTEREST. ANOTHER
COMMUNITY OF OURS WITH TWO
HUNDRED AND TWENTY FIVE UNITS.
FORTY SIX THOUSAND DOLLARS IN
TWENTY TWENTY ONE AND THIS YEAR
THEY'RE PAYING SEVEN HUNDRED AND
. TWENTY TWO THOUSAND DOLLARS
FOR INSURANCE. FINALLY ANOTHER
COMMUNITY WITH ONE UNIT LESS
THAN OURS THEY HAVE A HUNDRED
AND TWENTY FOUR UNITS IN TWENTY
TWENTY ONE EIGHT HUNDRED
THOUSAND DOLLARS FOR FORTY
MILLION DOLLARS IN BENEFITS.
THIS YEAR THEY'RE PAYING FIVE
HUNDRED THOUSAND DOLLARS HALF A
MILLION DOLLARS FOR TEN MILLION
DOLLARS IN BENEFITS. PLEASE
CONSIDER OPENING THE FAIR PANT
PLANS TO CONDOMINIUM HOMEOWNERS
UNDER A MASTER POLICY FOR FIRE
INSURANCE IT'S IMPERATIVE. THAT
THE STATE INCREASED BENEFITS TO
AT LEAST TWENTY MILLION DOLLARS
AND AT THE SAME TIME LOOK AT
GETTING THE INDUSTRY TO LOWER
RATES. CROSS THE STREET. HOAS
ARE DESPERATE. NOW MR GARY
THOMPSON OUR INSURANCE TO EACH
YEAR WE'LL SHARE WITH YOU WHAT
HE HAD FOUND OUT WHILE SEARCHING
FOR POLICIES FOR OUR COMMUNITY
THANK YOU. THANK YOU VERY MUCH
NOW WILL INVITE MISTER GERRY
THOMPSON YOU MAY PROCEED THANK
YOU SIR. THANK YOU GOOD MORNING
I'D LIKE TO START BY TALKING
ABOUT THE FACT THAT THE HORIZONS
H. AWAY BOARD OF DIRECTORS
CREATED AN INSURANCE COMMITTEE
IN OCTOBER OF TWENTY TWENTY TWO.
DUE TO THE MASSIVE PROPERTY
INSURANCE PREMIUM INCREASES WITH
THE COMMITTEE'S OBJECTIVE BEING
THE COMPLETION OF A DETAILED AND
STRUCTURED DUE DILIGENCE PROCESS
TO DETERMINE THE BEST AND MOST
APPROPRIATE ALTERNATIVES. TO
MEET HORIZONS INSURANCE
REQUIREMENTS AT THE LOWEST
POSSIBLE COST. THIS PROJECT WAS
COMPLETED YESTERDAY SO THE
TIMING OF THIS HEARING COULD NOT
BE BETTER. BECAUSE OF MY
BACKGROUND AS A SENIOR LEVEL
BUSINESS EXECUTIVE PRIOR TO
RETIRING FIVE YEARS AGO I WAS
APPOINTED CHAIR OF THE
COMMITTEE. I SPENT APPROXIMATELY
TWO HUNDRED HOURS WORKING ON
THIS PROJECT AND I'M HERE TO
TELL YOU THAT WHAT I LEARNED WAS
SIGNIFICANTLY DISAPPOINTING AND
EXTREMELY DISTURBING RELATIVE TO
HOW. THINGS ARE FOR US IN THE
PROPERTY INSURANCE MARKET PLACE
. THE FIRST STEP I TOOK AS THE
INSURANCE COMMITTEE CHAIR WAS TO
OBTAIN A COMPREHENSIVE
UNDERSTANDING OF OUR CURRENT
PROPERTY POLICY WHICH I QUICKLY
LEARNED IS A VERY COMPLEX
SUBOPTIMAL SYNDICATED POLICY
PROGRAM THAT HAS AN UNTOLD
NUMBER AT H. AWAY PARTICIPANTS.
IN SEVENTEEN DIFFERENT
PARTICIPATING WHO'LL BE
INSURANCE PROVIDERS THROUGH A
COMPANY CALLED APARTMENT
INSURANCE CONSULTANTS. BASICALLY
IF BE PARTICIPATING HOAS
COLLECTIVELY HAVE CLAIMS THAT
EXCEED BE PROGRAMS POLICY LIMIT
OF TWO HUNDRED MILLION DOLLARS
ANY SUBSEQUENT CLAIMS WOULD BE
DENIED IN THE PARTICIPATING HOAS
WOULD BE REQUIRED TO PAY THE
CLAIMS ON A PRO RATED BASIS.
NATURALLY WE WOULD MUCH PREFER A
POLICY WHERE THE ONLY WHERE WE
ARE THE ONLY PARTICIPANT SO AS
TO AVOID ANY RISK OR EXPOSURE
THAT WE HAD NO MEANS OF
CONTROLLING OR ASSESSING. MY
NEXT STEP WAS TO CONVICT MY NEXT
STEP WAS TO CAMPUS THE PROVIDER
MARKET CAREFULLY AND
COMPREHENSIVELY AND THE FIRST
THING I LEARNED WAS THAT WITH A
TINY HANDFUL OF EXCEPTIONS SUCH
AS STATE FARM INSURANCE
PROVIDERS WILL NOT TALK TO
INSURANCE DIRECTLY BUT RATHER
ONLY THROUGH BROKERS. SO I
CONTACTED WELL OVER A DOZEN
BROKERS AND WORKED WITH THEM
WITH THE HOPES OF SECURING
BETTER INSURANCE AT A LOWER COST
I EXTENSIVELY WORKED WITH ALL OF
THE FOLLOWING A LARGEST BROKERS
IN THE COUNTRY INCLUDING
BROWNIAN BROWN. ARTHUR GALLAGHER
MARCHING NECKLINE IN HEIAN. OCT
TWO HARBINGER NATIONAL AVERAGE.
WILLIS TOWERS IN TRUEST I ALSO
WORKED WITH A FEW SMALLER
BROKERS IN PARTICULAR. THE BERG
INSURANCE. IN IN OUR COUNTY WHEN
WE HAD OUR FARMERS INSURANCE
WITH PRIOR TO FARMERS EXITING
THE MARKET IN LATE TWO THOUSAND
ANDRABI OUR COVERAGE IN BY THE
WAY STATE FARM DENIED COVERAGE
FOR US AS THEY ARE NO LONGER
WRITING POLICIES. FOR HIGH FIRE
RISK COMMUNITIES. MUCH TO MY
DISMAY AS JANET MENTIONED WE
ONLY RECEIVED TWO QUOTES FOR OUR
NEW POLICY PERIOD FROM ALL THE
BROKERS THAT I JUST MENTIONED.
THE FIRST WAS A RENEWAL OF OUR
CURRENT SYNDICATED POLICY WITH
AN INCREASE OF 70% OVER TWENTY
TWENTY TWO WHICH WAS ON TOP OF
THAT YOU 54% INCREASE IN TWENTY
TWENTY ONE. AND THE OTHER WHAT
THAT WAS WE RECEIVED WAS FROM
THE MARTIAN DECLINING WHICH
INCLUDED ONLY TWENTY MILLION
DOLLARS OF COVERAGE OF THE FORTY
TWO MILLION WE NEED. AND IT WAS
AT A COST OF FIVE HUNDRED NINETY
FIVE THOUSAND DOLLARS PER YEAR.
SO THE BOARD DECIDED LAST NIGHT
TO GO WITH THE SUBOPTIMAL POLICY
THAT TO THAT THAT I JUST
MENTIONED. YOU STAND ON WHAT
JANET SAID A FEW MINUTES AGO
REGARDING THE MASSIVE PREMIUM
INCREASES WE ARE DEALING WITH
THAT HORIZONS IN THE YEAR TWO
THOUSAND OUR TOTAL PROPERTY
INSURANCE WAS THIRTY NINE
THOUSAND DOLLARS A YEAR WHICH
REPRESENTED SIX POINT 7% OF OUR
TOTAL HOMEOWNER ASSESSMENTS. THE
SUBOPTIMAL SYNDICATED POLICY WE
ARE RENEWING CHIU DAY IS NOW
FOUR HUNDRED AND SEVENTEEN
THOUSAND DOLLARS PER YEAR WHICH
REPRESENTS A WHOPPING 60% OF OUR
TOTAL IS SPECIMENS AND THAT IS
AFTER WE INCREASE OUR
ASSESSMENTS BY TWENTY FIVE
PERCENT. IN TWENTY TWENTY ONE IN
ORDER TO PAY FOR OUR PROPERTY
INSURANCE PREMIUM INCREASES. HAD
WE NOT BE INCREASED ARE STRESSED
BY THAT 25% OR PROPERTY
INSURANCE PREMIUMS WOULD HAVE
REPRESENTED 72% OF OUR TOTAL SS
NEEDS WHICH IS COMPLETELY.
UNSUSTAINABLE IN CLOSING WE DO.
NEED YOUR HELP EMILY APPLAUSE
EVERYTHING YOU ARE TRYING TO DO
BY EXPANDING THE FAIR PLAN TO
HELP H. AWAYS AND INCREASING THE
MAXIMUM FROM EIGHT POINT FOUR
MILLION TO TWENTY MILLION.
HOPEFULLY AT SOME POINT IN THE
NEAR FUTURE IT WILL BE EXPANDED
AGAIN TO A MAXIMUM OF FORTY
MILLION WHICH IS WHICH IS WHAT
HE AT RICE. THANK YOU AND PLEASE
DON'T HESITATE TO CONTACT ME IF
I CAN PROVIDE ADDITIONAL
INFORMATION AND ASSISTANCE IN
THE FUTURE. THANK YOU MISTER
THOMPSON- NOW WE WILL MOVE TO.
OUR FINAL PRESENTER PETER IN THE
INCIDENT WITH THAT KNEE STAND
VINEYARDS THE PRESIDENT OF NAPA
COUNTY FARM BUREAU MISTER YOU
SAID WHEN YOU'RE READY GOT THE
FLOOR THANK YOU FOR JOINING US.
BEAR WITH ME I HAVE SOME. I JUST
. FOR A GOOD JILL ROOM. FIRST
NAME IS PETER HAS AND I'M- YEAH
COUNTY FARM. THANK YOU. FOR
ABOUT ME TO SEE AND SHARE THE-
THAT CAL. FARMERS ARE HAVING THE
GIRL. INSURANCE MARKET THANK YOU
SENATOR FOR YOUR PREVIOUS WORK
ON SENATE BILL ELEVEN FARMERS TO
BE INSURED BY THE FAIR PLAN. C.
WERE NOT RENEWED. THIS IS PROVED
TO BE IMPORTANT TO THE THOUSANDS
OF FARMERS IN CALIFORNIA. I ALSO
WANT TO THANK MY SENATOR BILL
DODD FOR HIS WORK ON HIS FEET
ELEVEN AND IS CONTINUED SUPPORT
OF AGRICULTURE IN SENATE
DISTRICT THREE. OUR FARMERS
EXPERIENCED WITH INSURANCE
STARTED TO CHANGE WITH THE
ADMITTED MONDAY MARKET PULLING
AWAY FROM OUR AREAS IN MASS
AFTER THE WILDFIRES IN TWO
THOUSAND AND SEVENTEEN AND. TWO
THOUSAND TWENTY. A FARMER USED
TO HAVE ONE CONSOLIDATED POLICY
THAT WOULD HAVE COVERED MULTIPLE
RESIDENTIAL AND COMMERCIAL
POLICIES. NON RENEWALS FORCE
FARMERS TO BECOME INSURANCE
EXPERTS. MAKING A PART
RESIDENTIAL AND COMMERCIAL
POLICIES FOR BUILDINGS OFTEN ON
THE SAME PERSONAL. SOURCING
INSURANCE FROM THE FAIR PLAN AND
SURPLUS LINES ADDITIONAL. IS ONE
REASON THE MEMBERS HAVE GAP
INSURANCE. TO MAINTAIN THEIR
POLICIES BECAUSE THEY HAVE
FINANCIAL. RESPONSIBILITIES WITH
THEIR LENDERS MOREOVER SIMPLY
BEING IN THE WRONG ZIP CODE HAS
MADE NON RENEWAL FOR OUR MEMBERS
BUT THE PROPERTY IS IN AN AREA
CONSIDERED TO BE IN A HIGH. RISK
WHAT'S YOUR PLAN THE CAMPUS AT
EIGHT POINT FOUR MILLION FOR
COMMERCIAL BUILDINGS AND
PERSONAL PROPERTY. WHEN THERE
ARE MULTIPLE BUILDINGS ON THE
SECOND PARCEL IT ALL GOES INTO
THE SAME CAP. NOT A PER BUILDING
BASIS BECAUSE THAT ALSO INCLUDES
PERSONAL PROPERTY WHERE CERTAIN
INVENTORIES LIKE KIDS GOOD FOR
WINES. AND THEN IT COMES UP
SHORT. MANY BUSINESS JUST SELF
INSURED ABOUT THE BALANCE OF
THEIR UNINSURED. PROPERTY
EXPOSURE. OTHER REASONS THAT
BUSINESSES CHOOSE TO SELF INSURE
OUR FARMING. IT IS BECAUSE-
LIMITED. COVERAGES ARE- MID
WATER DAMAGE IN A MINUTE
COLLAPSED BUILDINGS. CANCER
FORCING CONSUMERS TO BE IN A
FAIR PLAN ALSO IN THE SURPLUS
MARKET LINES WHERE THEY
SOMETIMES HAVE THREE OR FOUR
ADDITIONAL POLICIES ON ONE
PARCEL WE'RE IN THE PAST A
TRADITIONAL. INSURANCE POLICY
WOULD COVER. EVERYTHING AND ALSO
CERTAIN NUMBER OURS WOULD GO
OVER MULTIPLE PARCELS SO IN THE
ABILITY TO HAVE INSURANCE IS
INCREASED- THE STRESS ON
INDIVIDUALS TO FIND AN
ALTERNATIVE. EVEN THOUGH THE
FAIR PLAN IS THERE- THANKS. BOTH
LARGES FOR. I'M SOME SMALL PART
ARE JUST GOING WITH ENSURE.
BECAUSE THEY CAN'T MEET THE
MITIGATION- REQUIREMENTS OF
CERTAIN INSURANCE- RELATIONS IN
LARGE OPERATIONS ARE CARRYING
ENORMOUS RISK. IN FINISHED
PRODUCTS AND MAKING SUBSTANTIAL
MITIGATION INVESTMENTS I
CLEARING TREES AND SPENDING
MILLIONS OF DOLLARS. AREAS WHERE
WHAT WERE HIT BY FIRES AND
TRYING TO LIMIT YOU MET IN THE-
THE FUEL LOADS THAT SURROUND
THEIR PROPERTIES. IF THEY CAN
AFFORD TO ANY CHOOSE TO SELF
INSURE BUSINESSES INVEST
HUNDREDS AND THOUSANDS OF
DOLLARS IN FARMING OPERATIONS
FOR WATER PUMPS OVERHEAD
SPRINKLERS AND BACKUP GENERATORS
. ARE CONDUCTING ALL DEFENSIBLE
SPACE MEASURES POSSIBLE
INCLUDING THE DEVELOPMENT THEIR
OWN FIRE BRIGADES IN ONE
PARTICULAR. HILLSIDE AREA IN
NAPA COUNTY. BUT EVEN WITH THESE
ACTIONS ARE FORMAL THERE ARE
PARTICIPATIONS AND SUCH AS FAR
AWAY AS COUNCILS DON'T SEEM TO
GUARANTEE THE AVAILABILITY TO BE
ELIGIBLE FOR FIRE- INSURANCE
POLICIES AND UNFORTUNATELY WE
DON'T GET CREDIT FOR IT- AND
THAT IS THE GOAL. TO GET BACK IN
THE EARLY AND MID MARKET IN
COVER RISK ON MILLIONS OF
DOLLARS OF EXPOSURE BOTH IN
PHYSICAL PROPERTY AND PERSONAL
PROPERTY. AND COMMERCIAL AND
RESIDENTIAL SITUATIONS AND
FARMING. THE FIRM PLAN IS A
GREAT BACKSTOPS RIGHT NOW BUT IT
SHOULD BE A TRANSITION BACK. TO
JUDICIAL INSURANCE POLICY.
PLANNING FOR THE FEW INVESTMENTS
DIFFICULT AND NEXT TO A BAR. TO
PLAN FOR WITH NOT KNOWING WHAT
INSURANCE COVERAGE YOU CAN HAVE
FOR INVESTMENT FIRM. RATE
INCREASES GROUND TIMES. THEY
WERE IN TWO THOUSAND SEVENTEEN
FOR MANY RESIDENTIAL PROPERTIES
WERE FARMERS. TO DEAL WITH. A
SITUATION WHERE THEY'RE IN THE
MIDDLE OF YOUR GET ENGINEERED.
BUT THEY STILL FALL IN THAT ZIP
CODE SITUATION WHERE THERE ARE
THE ABILITY TO BE COVERED IS
NEXT TO IMPOSSIBLE. CALIFORNIA'S
AGRICULTURAL BUSINESS LEADS THE
NATION FOR PRODUCTION VALUE.
OVER FIFTY ONE BILLION DOLLARS
IN DIRECT REVENUES IN TWO
THOUSAND TWENTY ONE BUT
UNFORTUNATELY MANY FARMERS ARE
CARRYING. SIGNIFICANT RISK IN
ORDER TO ASSEMBLY FORM IT WAS
RUSSELL CERTAINLY DISCOURAGE.
NEW CAPITAL INVESTMENTS IN THE
FUTURE. WHILE PROVIDING ABILITY
FOR FARMERS TO BE FULLY
RESTRICTED INSIDE THE POWER
PLANT. IT WOULD BE AN IMPORTANT
GOAL EQUALLY AS IMPORTANT IS
RETURNING POLICIES. TO THE
ADMITTED MARKETPLACE. ASSEMBLY
ARE NOT MUTUALLY EXCLUSIVE
OPPORTUNITIES THANKS FOR THE
OPPORTUNITY TO BE TRANSPARENT
ABOUT THE STATE OF CALIFORNIA.
INSURANCE MARKETS FOR FARMERS.
THANK YOU- THANK YOU SO MUCH FOR
THAT TESTIMONY- AND I'M SORRY
ABOUT THE POWER LUNCH I STORY I
DID SKIP PERSON I'M GONNA FIGHT
IRENE. SABRE INTO A CUTS COME
AND- JOIN US SO YOU MAY PROCEED
WHEN YOU'RE READY MY APOLOGIES.
NO PROBLEM THANK YOU GOOD
MORNING MY NAME IS IRATE. I'M
HERE TO SPEAK ON BEHALF ALL THE
INDEPENDENT AGENTS AND BROKERS
IN CALIFORNIA HI SAYS ASIAN
REPRESENTS THOUSANDS OF
INDEPENDENT INSURANCE AGENTS
THAT FOR CUSTOMERS ON VIRTUALLY
EVERY COMMUNITY IN CALIFORNIA. I
AM A FORTY FOUR YEAR LICENSE
INSURANCE TRAVEL PERSONAL LINES
INSURANCE BUSINESS AND
SACRAMENTO FRIENDLY WOULD HAVE
BEEN A NATIONAL AND IT'S ALSO
WHEN THE TOILET. REPRESENTING
AGENTS AND BROKERS IN CALIFORNIA
ON THE BOARD OF THE CALIFORNIA.
FIVE COMMENTS ON MY OWN AND DO
NOT NECESSARILY REFLECT THE
VIEWS OF MY EMPLOYER. ACOSTA
STATES ARE MEMBERS REPORT THAT
THEY'RE EXPERIENCING THE WORST
INSURANCE MARKETS PARTICULARLY
FOR HOMEOWNERS AND PROPERTY
INSURANCE AND BUT THEY'VE EVER
SEEN IN THEIR CAREERS. IN MANY
CASES THE CARE PLAN AND NOT
INTENDED CHAIRS BUT TO HIGHEST
PRICE OPTIONS. ARE ONLY
AVAILABLE. A FOR IN PLACE
INSURANCE ON OF OUR- WHAT THE-
OF MANY CATASTROPHIC WILDFIRE
AND THE IN THE BILL AND-
POSSIBLE TO OBTAIN A GROUP UNDER
THE LIVE CHARGE. RIGHT FOR THE
EXPOSURE REGULAR INSURANCE HAVE
RETRAIN FROM THE- MARKET PLACE
THE LAST SEVERAL YEARS BUT THIS
TREND SEEMS TO BECOME MORE
PRONOUNCED IN TWO THOUSAND
TWENTY YEARS. AND IT IS
CONTINUING TO BORROW. THESE
COMPANIES ARE ALREADY. NUMBERS
POLICIES PARTISAN CASES THAT
EVEN TERM YEARS I'M TELLING
AGENTS. DON'T SUBMIT YOUR BILL.
AND THERE TAKE A COUPLE APPLICA
ARE COMPARED TO GRADING SYSTEMS
WHICH HAS THE- OF MAKING IT MUCH
MORE DIFFICULT TO OBTAIN PREMIUM
. THEIR LIMIT AB PREMIUM
FINANCING OPTIONS REDUCING
ADVERTISING LAMINATING
DISCOUNTS. AND OTHERWISE YOU
TURN YOUR BUSINESS AND OR NON
RENEWING POLICIES. THAT HAVE FOR
YEARS. NOT ONLY THIS IS UNDER
THE FUTURE- MADE BUT IS ALSO A-
IMPACT ON OUR CLIENTS IN THE
INSURANCE BUYING PUBLIC. AND THE
ABSENCE OF A HEALTHY COMPETITIVE
MARKETPLACE ADMITTED INSURERS
CONSUMERS. I HAVE THREE OPTIONS
NUMBER ONE THE COMBINED BARE
BONES POLICY CALIFORNIA FAIR
PLAN. WHICH MOST CASES WILL
REBOUND. UNDERINSURED MANY OF
THE ADDITIONAL SUPPLEMENTAL
DIFFERENCE A CONDITION POLICIES
WHICH PROVIDE MORE PROTECTION
INCLUDING THE LIABILITY COVERAGE
PROTECTION. TO FIND PRIVATE LINE
I'M NOT ADMITTED INSURANCE
CARRIER WILLING TO TAKE THAT
RISK BUT THEIR TOP POLICIES TEND
TO BE ASTRONOMICALLY EXPENSIVE.
OFTEN INCLUDE SIGNIFICANT
COVERAGE LIMITATIONS ARE NOT
COVERED IN THE EVENT OF
INSOLVENCY BY A CALIFORNIA
INSURANCE GUARANTY ASSOCIATION.
WHAT THREE THINGS ARE WITHOUT
INSURANCE UNLESS THEY ARE
REQUIRED BY MORTGAGE LENDER TO
PROVIDE PROOF OF COVERAGE AND
LET'S PRAY. THAT THEY DON'T
INCUR MAJOR LOSS. IT IS NOT A
NEW FOR US TO HEAR THAT LENDERS
ARE COURSE PLACE POLICY TO
PROTECT THEM I KNOW AND FORCE
MORTGAGE HOLDER TO VERY.
PREMIUMS FOR THAT KIND. BUT WE
ALSO HEAR LETTERS ON AND
COMMERCIAL FOR FORECLOSURE.
REFUSING TO PROVIDE LAW. LETTERS
CREDIT ARE EITHER BY BY THE
PURCHASE A PROPERTY. A CRISIS
AND PROPERTY OTHER CAN NOT
ALLOWED TO BE CONTINUE IT IS.
COMPACT MODEL ARE YOU. AND ALL
THE TIMES ERRORS THAT NEED
TRANSPORTATION BUT ALSO ECONOMIC
AND THE OF COMMUNITY TO ME
URGENT NEEDS TO HOUSE STOCK. FOR
MOST. YOU BUY HOW WITHOUT LOAN
CAN'T GET A WITHOUT ANY ON A
PROPERTY TO LARGER I THAT YOU
CAN FIND IN. WILLING TO ALL OUT
OF A COVERAGE OUT OF REACH PRICE
. THANK GOODNESS FOR THE PLAN AS
A OFTEN IS ALL BE A- THE ONLY
OUT TO PLACE AND EVEN THEN
THERE'S ISSUES WITH THE LIMITS
THE AMOUNT OF AND THE TECH
ISSUE. RELATIVE AND MULTIPLE
POLICY COVERING THE SAME. OUR
THE FACT ATMO. IS JUST A BAND
ORDER AND BECAUSE- THEIR PLAN
HAS MAJOR BASED WITH ENGINE
BERMAN AND- OPPOSITE. ACOSTA OF
SIGNIFICANT ASSESSMENTS ON
MEMBER COMPANY. AT THAT WOULD
HAVE. WE DARE I HAVE MY-
INSURERS WILL FURTHER RESTRICT
THE BALL. BUSINESS BECAUSE MORE
POLICIES INSURERS RIDE IN THE
PRIVATE MARKET THE LARGER THE
ASSESSMENT THEY WOULD HAVE TO
PAY AND THOSE RESTRICTIONS WOULD
BE LIKE WITHOUT STABILIZER EVEN
IN URBAN URBAN AREAS WERE
CATASTROPHIC WILDFIRES.
EXPOSURES RELATIVELY LOW. AND
AGENTS AND THEIR CUSTOMERS ARE
CLASS AB ISSUE AND DEPARTMENT
INSURANCE REGULATORY SYSTEM. WE
HAVE NO LONGER EVERYBODY. FACING
INTO BUYER AND BUYER IN THIS.
INSURANCE POLICY YOU HAVE FOR
THEY CAN GET OUT IT RIGHT. HELLO
THAT I CAN TAKE YEARS FOR THE
DEAL WHY TO MY DISTRICT
DECISIONS ARE UP. LARA INSURANCE
LITTLE OR NO. THAT THEY CAN
OBTAIN RIGHTS ARE OUT IS A THE
STATE'S CATASTROPHIC FIRE
EXPOSURE BUT THEY HAVE BEEN. TO
IT IS IN CONCRETE. TO NEED THE
READY LAW THIS NOT RIGHT. THE
HUGE REINSURANCE COSTS THAT
INSURERS MUST PAY. AND THAT DOES
NOT PERMIT INSURERS HE IS A
WIDELY ACCEPTED TOOLS FOR
PROJECTED FUTURE LOSSES AND IT
TAKES A LONG. ACT ON RATE
INCREASES REQUEST. INSURANCE
TELLS US THAT INSURERS ARE
BOMBING ONLY SIX POINT NINE
RATING GOOD SENSE REQUEST INSIDE
CANCER TREATED ME IN ORDER TO
AVOID REGULATORY MANDATORY
HEARINGS. OR IMPROPER I
PROFITEERING INVENTORS RATHER
THAN REQUESTED MEMORIES THEY
ACTUALLY NEED. TO BE TRUE. THE
PART ALSO COMPLAINS THAT ENSURES
I KIND OF DEPARTMENT STAFF AND
RESOURCES BY MAKING MULTIPLE
SMALL INCREASING CLASS.
INSURANCE AGENTS AND BROKERS ARE
NOT IN A POSITION TO DETERMINE
FAULT BUT CERTAINLY A MAJOR
FACTOR CONTRIBUTING TRIPS TRUCK
. THE SITUATION IS AN OUTDATED
AND INFLEXIBLE READING LAW TO
THE EXTENT THAT SUCH A STATUTE
DOES NOT ALLOW INSURERS TO
ACHIEVE ADEQUATE RATES PERSONS
ON THE SECOND. ASSIGNED TO BILLS
TO MEET THE STANDARD AMOUNT
ALLOWING INADEQUATE RATES IN THE
STATE OF. PROPERTY INSURANCE
COVERAGE. WHAT NO ONE WANTS SEE
WITH HIGHER RATES FOR ENSURE WE
BELIEVE THIS WORK BETTER PAYING
FOR IT IT REACHED OF BYRON. IT'S
HAVE MARKETERS WERE CONSUMERS
HAVE. OPTIONS PURPORT AND
COVERAGE AS IT IS NOW MANY HAS
ARE STUCK WITH INADEQUATE.
ASTRUM HIGH PREMIUM AND UNABLE
TO PROPER AT PRICE. INSURANCE
RATES ARE PART OF THE- LAST YEAR
DEPARTMENT INSURANCE FOR IN THE
THAT SEVENTY MORE CAL HOME ARE
LIKE BECAUSE TO. WHY RISK. IMAGE
AND EVEN NOT IN INTO FOR NOT
SUBJECT RATE AND ARE EAGER BUY
ENSURE AND CAL DUE TO EXTREMIST
HIGHER. THE STATE MUST BACK BUT
MORE DOLLARS TO BE BACK WHILE IN
IN URBAN. AND THE PRESSURE IS
WAS SENT. IN CONCLUSION I FIND
IT DEEP BECAUSE TO THAT WORKERS
ANALYSTS ARE FACING IN THE
INSURANCE IN THIS DUE TO THE
CURRENT MY- DEMAND OF TIME IT
TAKES WRITE ONE THING CALLS AS
IT RESPONSE DAY. TO WEEKS I AM
PRESSED. I SPENT EIGHT HOURS THE
OTHER DAY TRYING TO A CALL AT
THE AND BY US MINUTE CAL EXCEPT
THE LOCATION. ALL THOSE APPLE.
AS CHECKS PATIENTS I'M SPENT IS
RIDICULOUS AND SO ARE NOT BUT-
HELLO WITH THAT ANOTHER JUST
CARRY JUST REDO ARE A MISSION
210% AND WE ARE HARD FOREVER FOR
A LOT HARDER THAN I. LAST I LOVE
THE BUSINESS I TRULY DO. AND
SEEN ANYTHING THIS MY COURT
YEARS IT TAKES A FROM ALL THE
FUN IT SHOULD QUITE CHANNEL. AND
FRANKLY I'M JUST TIRED. EVEN
HOMES IN THE CITY STREETS AND-
SACRAMENTO CLASSIC I NON FOR
TRADE. AT HER HOME BACK UP TO A
TRAIL GREEN BAY ARE GONE COURSE
WHERE. THESE ISSUES CALLING IN
MANY KALRA TO MEET THE INDUSTRY
OR PAPER TIRE. AND THAT IS JUST
TOO MUCH. IT IS A GREAT FOR. WHO
RELY ON INDIVIDUALS AND THEIR
COMMUNITY THAT WE HAVE. A I
UNDERSTAND MR IN THE MIGHT
EXPLAINS AND CONSTITUENTS ARE. I
MY COMMENTS. HELPLINE A SOLUTION
FOR THEM. MANCHESTER ENGLAND.
I'M NOT HAPPY TO RESPOND TO A
REQUEST YOU WITH MY MIND. THANK
YOU VERY MUCH I WANT TO THANK
ALL OF OUR PANELISTS HERE TO A
FIRST YOUR PERSONAL EXPERIENCES
I THINK THAT IT WAS VERY
IMPORTANT FOR ME AND- THE PRO
TEM AND MY COLLEAGUES IN THIS
OVERSIGHT HEARING TO. REALLY
BRING THE PERSPECTIVE OF OUR
CONSUMERS THEY'RE DEALING WITH
SOME VERY SERIOUS CHALLENGES-
SET THIS POINT I'M GONNA RESERVE
MY QUESTIONS AT THE END I WANT
TO GIVE MY COLLEAGUES THE
OPPORTUNITY. TO ASK ANY
QUESTIONS MEMBER CENTER
QUESTIONS. THE WAY TO THE END AS
WELL. COM. K. TO THANK THE
PRISON FOR- BRINGING THE PERFECT
OF THE- PROTECT. I READ SOME-
YOUR WORDS ARE REST WITH ME.
THERE ISN'T A DAY GOES BY THAT I
DON'T HEAR FROM MY CONSTITUENTS
DIRECTLY ABOUT THE IMPACT OF THE
INSURANCE INDUSTRY AND WILDFIRES
ON THEIR HOMES. SO I REPRESENTS
THE EASTERN PART OF CALIFORNIA
SENATE DISTRICT FOUR WHICH
COVERS UP SOME OF OUR SMALLEST
COUNTIES ALPINE. ALL THE WAY
THROUGH THE FARMING BELT OF THE
CENTRAL VALLEY AND SO WE HAVE
BEEN CONTINUOUSLY DEVASTATED BY
EXTREME WEATHER AND WILDFIRE.
AND THE NUMBER ONE ISSUE IS HOW
DO WE KEEP OUR CONSTITUENTS IN
THEIR HOMES PARTICULARLY WHEN
THE MARK THE INSURANCE MARKET IS
OF ALL THE TILE- AND WE HAVE
CONSISTENT- LETTERS IN THE MAIL.
THIS CONTINUING INSURANCE FOR
FOUR PEOPLE- SOME OF THE FIRES
THAT HAVE BEEN VERY IMPACTFUL MY
DISTRICT- THE CAL FIRE WHICH WHY
OUT THE- TOWN GRIZZLIES. WE ARE
STILL LOOKING AT HOW TO HELP
SUPPORT THOSE. PEOPLE AND THIS
IS YEARS AFTER THE DEVASTATING
FIRE- THE ELECTRIFY OR WHICH WAS
IN- CAME YEARS AFTER THE
DEVASTATING BUTTE FIRE IN AMADOR
AND CALAVERAS AS WELL AND SO
THESE ARE SOME OF THE PATTERNS
THAT WERE SEEN AND HOMEOWNERS
ARE DOING. THE WORK TO HARDEN
THEIR HOMES THEY'RE DOING THE
WORK TO CREATE DEFENSIBLE SPACES
AND YET THERE'S NOT THAT
CONNECTION WITH THE INSURANCE
MARKET AND THE CONSUMERS- I WILL
SAY THAT I AM ON THE FAIR PLAN
AND HAVE STRUGGLED TO
UNDERSTAND. HOW THOSE THE
COVERAGE- OVERLAPS OR BOARD
DISCONNECTS AND EVERY YEAR- WHEN
I OPENED A ENVELOPE FOR MY
INSURANCE COMPANIES I'M AFRAID
IS THAT THE LETTER THAT SAYS
THAT I'M GOING TO BE CANCELLED
AND THAT IS NOT. UNIQUE TO ME
AND MY SEEN MY NEIGHBOR HAVING
TO EVACUATE. WILDFIRE SEASON
AFTER WILDFIRE SEASON THEIR
ANIMALS THEIR THEIR THEIR
PROPERTY IN THEIR HOMES THEIR
FAMILY MEMBERS AND OFTEN TIMES
THESE ARE SOME OF OUR MOST
VULNERABLE- FOLKS THESE ARE
VETERANS ARE SENIORS PEOPLE WITH
DISABILITIES THAT HAVE BEEN
LIVING IN THEIR HOMES. FOR
GENERATIONS THAT HAVE BEEN
FARMING THEIR LANDS FOR
GENERATIONS AND SO WE ARE HAVE
THE RESPONSIBILITY IN CALIFORNIA
TO TAKE THESE STORIES TO TAKE
THESE REAL LIFE EXPERIENCES AND
CREATE SOLUTIONS SO I'M VERY
EXCITED THAT. YOU'RE ALL HERE
TODAY. VARIANCE FORWARD- I KNOW
THAT WE ARE LOOKING AT DIFFERENT
SOLUTIONS IN PARTNERSHIP WITH
THE WITH THE INSURANCE
COMMISSIONER- AS WELL AS WITH
THE MEMBERS OF THIS COMMITTEE- I
CANNOT. I CANNOT GO THROUGH
ANOTHER FIRE SEASON WITHOUT
HAVING SOLUTIONS FOR BUSINESSES
FOR HOMEOWNERS FOR OUR RENTERS
FOR OUR FARMERS SO I IMPLORE YOU
TO WORK WITH US VERY CLOSELY IN
THIS YEAR TO ENSURE THAT WE HAVE
THOSE SOLUTIONS THANK YOU. THANK
YOU SENATOR. MR DUCKED THE
QUESTIONS. NO QUESTIONS I DID
WANT TO THANK THE PANELISTS FOR
THE INFORMATION- YOUR FOR ME THE
H. AWAY THING IS. KIND OF NEW-
THE REST OF IT NOT NOT SO NEW
AND- I THINK THIS NEXT PANEL IS
GOING TO BE THE AREA WHERE WE
CAN DELVE IN A LITTLE BIT MORE
GET MORE INFORMATION TO- REALLY.
TRY TO. WE'LL SEE WHAT THE ART
OF THE POSSIBLE IS IN TERMS OF.
TRYING TO CREATE MARKETS THAT
ALLOWED THAT MAKE THESE
INSURANCE AGENCIES COME BACK AND
IT'S NOT AGENCY PROCEDURES COME
BACK YOU'RE IN THE MARKET SO
THANK YOU VERY MUCH. THANK YOU
SENATOR DODD- I WANTED TO YOU
KNOW JUST ONCE AGAIN RE ITERATE
TO OUR THANKS TO THE PANELISTS
FOR SHARING THEIR PERSONAL
STORIES. CLEARLY WE HEAR THEIR
FRUSTRATION AND THEIR VOICE AND-
SOME OF THE NUMBERS WE'VE HEARD.
ARE A REALLY SHOCKING- IN TERMS
OF THE COST FOR YOU KNOW BY WAY
OF EXAMPLE. ONE OF THE
GENTLEMAN'S MENTIONED THIRTY
NINE THOUSAND WAS THE PROPERTY
INSURANCE AND NOW IT'S GONE UP
TO FOUR HUNDRED AND SEVENTEEN
THOUSAND THAT IS. QUITE SHOCKING
TO HEAR- BUT I WANT TO POINT OUT
TO I BELIEVE IT WAS- MISTER
THOMPSON I THINK IT IS YOU WHO
SET THAT UP IN TWO THOUSAND THE
RATE WAS THIRTY NINE THOUSAND TO
COVER THE INSURANCE. WHERE TODAY
IS FOUR HUNDRED AND SEVENTEEN
THOUSAND AND SO I KIND OF WANT
TO POINT OUT WHAT I WE'VE ALL
BEEN HEARING AND DISCUSSING NOT
ONLY HERE AS A BODY BY TOWN.
BACK HOME AND THAT IS THE
REALITY WE'RE FACING WITH
CLIMATE CHANGE AND HOW IT'S
CAUSING. A LOT MORE- DISASTERS
NATURAL DISASTERS AND- IT IS-
RECORDED THAT LOS STUFF SIX MORE
MOST DESTRUCTIVE WILDFIRES- HAS
OCCURRED IN THE LAST SIX YEARS
SO THAT'S CAUSING A LOT OF THE
ISSUES HERE WITH THE INSURANCE
MARKET. I KNOW THAT THE
INSURANCE COMMISSIONER IS
AGGRESSIVELY PURSUING SOLUTIONS
THAT INCORPORATE- CLIMATE
CHANGE. AND- WE'RE GOING TO HEAR
A LITTLE BIT LATER- WHAT HE'S
WORKING ON BUT I KNOW THAT IT'S
AN ISSUE THAT WE NEED TO.
ADDRESS AND WE KNOW THAT WE NEED
SOLUTIONS FOR THESE INDIVIDUALS
THAT ARE STRUGGLING IT IS NOT
SUSTAINABLE AND SO I LOOK
FORWARD TO THE NEXT PANEL THAT'S
GOING TO HAVE- A LOT MORE
INFORMATION AND THOSE TOPICS BUT
I WANT TO GO BACK TO. TO IRENE
AND THIS IS ONLY FOR THE
PUBLIC'S BENEFIT BECAUSE I KNOW
THAT WE UNDERSTAND INSURANCE A
LITTLE BIT MORE DEEPLY BUT- I
WANT YOU TO REITERATE AND
EXPLAIN- YOU TALKED ABOUT THE
THREE OPTIONS THAT HOMEOWNERS
AND- BUSINESSES HOW OFTEN THAT
IS NUMBER ONE CALL WITH THE
ADMITTED MARKET. NUMBER TO GO TO
THE FAIR PLANET NUMBER THREE GO
TO THE NON ADMITTED. MARKET
WHICH IS VERY VERY EXPENSIVE CAN
YOU. GO BACK TO THE NON ADMITTED
MARKET OUT THE REINSURANCE.
ISSUE AND EXPLAIN THAT A LITTLE
FURTHER. WHILE THE MOM MARC IS
YOU'RE DEALING WITH COMPANIES
WOULD LIKE TO THERE WOULD BE A
BRAND COMPANIES SUCH AS LLOYDS
OF LONDON. ARE THERE FOR. IS AS
BAD AS I UNDERSTAND IT THEY'RE
NOT ALLOWED TO USE THE- MONEY
FOR THEIR REINSURANCE AND
THEY'RE RIGHT FILENE'S. THE
MINIMUMS THAT AGAINST AT. IT
OPERATES IN MORE MARKETPLACE ON
BUT- THE YOU KNOW. YOU KNOW I
HAVE TO TELL YOU THAT I'M
PROBABLY NOT THE RIGHT PERSON TO
ON THE ONE BUT IT'S JUST AS THE
PROVIDER RATE FOR THE REST AND-
AND THE NOT INVENTED MARC BERMAN
IS TRULY PROBABLY BUYING THEM
RIGHT AT THE MOST APPROPRIATE-
LIST. IS THAT ONE AND IT'S MORE
. ON THAT PART OF. AT WELL LET
ME JUST CUT OF CARILLO BIT ON
THAT VERY- THE REAL. IS THAT THE
NON ADMITTED MARKET- IS A LOT
MORE EXPENSIVE AND WHAT HAPPENS
WHEN YOU GO TO THE NON ADMITTED
MARKET AND THEY DON'T HAVE FOR
INSURANCE THAT MEANS THAT YOU
KNOW THEY COULD ENSURE YOU BUT
AT THE END OF THE DAY. YOU MAY
NOT HAVE TO COVERAGE EFFECTS-
AND THERE'S BEEN A CASE I
BELIEVE IT WAS FOR SAID IF I
REMEMBER CORRECTLY THAT DOUBT.
YOU KNOW HAD A DIFFICULT TIME
PAYING OUT SOME OF THE- THE
INSURANCE COSTS FOR OUR
WILDFIRES HEALTH TWENTY HOW
WE'RE GONNA GET DEEPER INTO THIS
ISSUE BUT I WANTED TO MAKE SURE
THAT. AS OUR PRESENTERS ARE ARE
TO SPEAKING ESPECIALLY THE NEXT
PANEL TO. KEEP IN MIND THAT WE
HAVE A LOT OF NEW MEMBERS IN
THIS COMMITTEE AS WELL AS HOW
WE'RE LIVE STREAMING AT HOME AND
SO WE WANT TO MAKE SURE THAT- WE
SLOW DOWN AND BE CAREFUL WITH
THE ACRONYMS BECAUSE IT IS A
LITTLE. COMPLEX AND SO ONCE
AGAIN THANK YOU TO ALL OUR
PANELISTS WHO- TO SHARE THEIR
PERSONAL STORIES HOW WE HEAR YOU
WE UNDERSTAND THE FRUSTRATION.
AND WE WILL CONTINUE TO FOCUS ON
HOW ON HOW WE GET YOU OUT WHAT
YOU NEED AND ALL OF US ARE HERE
VERY COMMITTED ON THAT'S ALL
THANK YOU VERY MUCH- I WANT TO
INVITE THE NEXT. GROUP OF
PANELISTS TO COME UP WITH. NOW
WE WILL TURN TO OUR SECOND PANEL
OUR SECOND PANEL. WE'LL HEAR
FROM THE INDUSTRY PROFESSIONALS
WHO WILL DESCRIBE FOR US THE
CURRENT STATUS OF THE INSURED
UNDERINSURED AND NON RENEWAL
POLICIES AND DISCUSS CHALLENGES
AND OPPORTUNITIES FOR THE MARKET
IN TERMS OF. LONG TERM
SUSTAINABILITY AND ADVANCED
PREPAREDNESS AND RESPONSE TO THE
STATE'S INCREASING CLIMATE.
RELATED RISK OUR PANELISTS WILL
INCLUDE MICHAEL MARTINEZ CHIEF
DEPUTY COMMISSIONER. LEGISLATIVE
DIRECTOR AT THE DEPARTMENT OF
INSURANCE ALSO JOINING HIM AS-
MIKE PETERSON DEPUTY
COMMISSIONER FOR CLIMATE AND
SUSTAINABILITY. AFTER HIM WE
WILL HEAR FROM MARK THE SEGMENT
VICE PRESIDENT STATE GOVERNMENT
RELATIONS FOR THE AMERICAN
PROPERTY CASUALTY INSURANCE
ASSOCIATION. AND SEREN TAYLOR
SENIOR LEGISLATIVE ADVOCATE.
WITH A PERSONAL INSURANCE
FEDERATION OF CALIFORNIA OUR-
FINAL PRESENTER WILL BE VICTORIA
ROUCH WITH THE FAIR PLAN STILL.
IF I CAN INVITE MICHAEL- MICHAEL
MIKE PETERSON AT TO JOIN US HERE
IN THE FRONT IF YOU MAY. CAN HE
COME IN. OKAY EXCUSE ME SO GO
AHEAD. YOU MAY PROCEED FROM
WHERE YOU'RE AT THANK YOU THANK
YOU TO RUBIO MICHAEL MARTINEZ.
BEHALF OF INSURANCE COMMISSIONER
RICARDO LARA AND THE CALIFORNIA
DEPARTMENT OF INSURANCE AND
THANK YOU CHAIR RUBIO AND
SENATOR OUT OR OUT OF GUILT FOR
HER AND OTHER MEMBERS OF THE
COMMITTEE FOR INVITING US HERE
TODAY I'M JOINED HERE BY MIKE
PETERSON. DEPUTY COMMISSIONER
FOR CLIMATE SUSTAINABILITY AND-
WE WERE ASKED BY THE COMMITTEE
TO PROVIDE AN OVERVIEW OF THE
DEPARTMENT'S ROLE CURRENT TRENDS
WE ARE SEEING AN UPDATED DATA
PERTAINING TO THE CURRENT STATE
OF THE PROPERTY INSURANCE MARKET
. LED BY COMMISSIONER A LOT OF
THE DEPARTMENT OF INSURANCE IS
FOCUSED ON INSURANCE PROTECTION
FOR ALL CALIFORNIANS
COMMISSIONER LOT AS PRIORITIES
INCLUDE REDUCING THE IMPACTS OF
CLIMATE CHANGE THANK YOU TO THE
CHAIR FOR. CERTAINLY IDENTIFYING
THAT IN HER AND HER COMMENTS.
INCREASING HEALTH CARE ACCESS
PREVENTING FRAUD ON SMALL
BUSINESSES AND GIVING
CALIFORNIANS THE BEST VALUE AN
INCREASE CHOICES FOR PROPERTY
AND AUTO INSURANCE. ARCS WILL
CHIEFLY FOCUS ON THE PROPERTY
INSURANCE MARKET AND THE
DEPARTMENTS WORK TO PROTECT
CONSUMERS FROM WILDFIRES.
COMMISSIONERS LAW COMMISSIONER
LATTA'S. WORK IS AIMED AT
PROTECTING CALIFORNIANS AND FOR
IMPORTANCE WAYS ONE. EXERCISING
OUR AUTHORITY TO PROTECT
WILDFIRE SURVIVORS AND WORKING
IN PARTNERSHIP. WITH THE
LEGISLATURE AND GOVERNOR AND HIS
ADMINISTRATION TO PROVIDE AND
EXPAND BENEFITS AND OPTIONS TO
AND FOR BUSINESSES AND RESIDENTS
. TO MAKING CALIFORNIA SAFER
FROM WILDFIRES THROUGH A
PROACTIVE STRATEGY OF INSURANCE.
MITIGATION DISCOUNTS AND SAFETY
MEASURES DEVELOPED IN
PARTNERSHIP WITH STATE AGENCIES
FIRE SAFETY EXPERTS AND
STAKEHOLDERS. THIRDLY
MAINTAINING THE FAIR PLAN HAS A
STRONG AND SUSTAINABLE SAFETYNET
GIVING TEMPORARY PROTECTION FOR
BUSINESSES AND RESIDENTS
FOURTHLY PROMOTING A FAIR AND
COMPETITIVE MARKET UNDER
CALIFORNIA'S SYSTEM. FOR PRIOR
APPROVAL OF INSURANCE RATES
ESTABLISHED BY CALIFORNIA VOTERS
THIRTY FIVE YEARS AGO UNDER
PROPOSITION ONE OF THREE.
STARTING IN DECEMBER TWENTY
NINETEEN COMMISSIONER LOTTA
TRIGGERED A LAW THAT HE AUTHORED
AS A MEMBER OF THE CALIFORNIA
STATE SENATE. THAT PREVENTS
HOMEOWNERS THIS INSURANCE
COMPANIES FROM NON RENEWING
POLICIES FOR THOSE LIVING
ADJACENT. TO A DECLARED WILDFIRE
EMERGENCY ROOM FOR ONE TOTAL
YEAR FOR THIS LAW WE BELIEVE HAS
BEEN SUCCESSFUL IN GIVING
CONSUMERS BREATHING ROOM AFTER A
WILDFIRE DISASTER AND HELPING
STABILIZE INSURANCE MARKETS. TO
DATE SINCE TWENTY NINETEEN HE
HAS PROTECTED MORE THAN FOUR
MILLION RESIDENTIAL POLICIES
FROM NON RENEWAL BY THEIR
INSURANCE COMPANY INCLUDING MORE
THAN FOUR HUNDRED AND FIFTEEN
THOUSAND POLICIES DUE TO FIRES
IN TWENTY TWENTY TO ALONE. THE
DEPARTMENT'S OVERSIGHT OF
COMPLAINTS AND OVERSIGHT OF THE
CONDUCT OF INSURANCE COMPANIES
FOLLOWING WILDFIRES HAS RESULTED
IN NEARLY FOUR HUNDRED AND
SEVENTY MILLION DOLLARS RETURNED
TO CONSUMERS SINCE TWENTY
EIGHTEEN. BENEFITS THAT THEY
WOULD NOT HAVE RECOVERED WITHOUT
THE DEPARTMENT'S ACTIONS.
COMMISSIONER LOTTE HAS ALSO
WORKED IN PARTNERSHIP WITH THE
STATE LEGISLATURE INCLUDING
MEMBERS OF THIS COMMITTEE TO
EXPAND CONSUMER PROTECTIONS
INCLUDING. HOW TO SPONSOR SB
EIGHT SEVENTY TWO AND TWENTY
TWENTY AUTHORED BY SENATOR BILL
DODD. TO CUT RED TAPE ALLOWING
WILDFIRE SURVIVORS AND EVACUEES
TO BETTER TO ACCESS THEIR
INSURANCE BENEFITS AND IS PROUD
TO COMES COSPONSORED SURE
RUBIO'S SENATE BILL FIVE ZERO
FIVE THIS SEASON THE SESSION
WITH A CALIFORNIA FARM BUREAU
FEDERATION. TO ESTABLISH A
COMMERCIAL CLEARING HOUSE. AT
THE FAIR PLAN AMONG OTHER
SPONSORED AND SUPPORTED BILLS.
COMMISSIONER LARA HAS ALSO
FOCUSED ON MAINTAINING THE
CALIFORNIA FAIR PLAN AS A
SUSTAINABLE INSURANCE SAFETY NET
OF LAST RESORT. HIS ACTIONS
INCLUDE INCREASING COVERAGE
LEVELS FOR RESIDENTIAL AND
COMMERCIAL PROPERTIES WHICH HAVE
NOT CHANGED MORE THAN TWENTY
YEARS. THROUGH HIS INVESTIGATIVE
HEARING OF THE FAIR PLAN LAST
JULY. HE CONTINUES TO UNDERTAKE
A SYSTEMATIC ASSESSMENT OF
FURTHER CHANGES THAT COULD
SHOULD BE DONE TO HELP CONSUMERS
IN PARTNERSHIP WITH THE FAIR
PLAN. THIS ALSO INCLUDES MEETING
WITH HOMEOWNERS ASSOCIATIONS
AGRICULTURAL BUSINESSES BUILDERS
REALTORS RECREATIONAL YOUTH
CAMPS AND- MANY OTHER
STAKEHOLDERS AS WELL AS THE FAIR
PLAN INSURANCE INDUSTRY. I DO
WANNA THANK MEMBERS OF THIS
COMMITTEE FOR YOUR CONTINUED
SUPPORT AND COLLABORATION FOR
FURTHER ACTION ON THIS ISSUE OF
WILDFIRES AND INSURANCE
AVAILABILITY AND AFFORDABILITY
AND IN PARTICULAR CHART REVIEW
FOR HER LEADERSHIP IN AUTHORING
SENATE BILL ELEVEN. THIS PAST
SESSION IN WHICH WE WERE ABLE TO
ENSURE THE FAIR PLAN COVERS
AGRICULTURAL RISK WHICH IS NOW
BEEN FULLY IMPLEMENTED BY THE
DEPARTMENT PART BY THE
DEPARTMENT IN PARTNERSHIP WITH
THE FAIR PLAN. THE DEPARTMENT
CONTINUES OUR REVIEW OF
INSURANCE RATE FILINGS WHICH IS
INTEGRAL TO GIVEN CALIFORNIANS
MOST CHOICES FOR INSURANCE IN
THE NATION. ONE TRIMS COMPANIES
IN MANY CASES ARE SEEKING TO
INCREASE COSTS FOR THOSE LIVING
IN AREAS WITH PAUL FAR RISK.
ONLY ALLOWING INSURERS TO CHARGE
MORE FOR INSURANCE IS NOT GOING
TO SOLELY. ROUV INSURANCE
CHOICES FOR CONSUMERS ALTHOUGH
UNDER PROPOSITION ONE OF THREE.
INSURANCE COMPANIES ALONE DECIDE
WHETHER TO OFFER INSURANCE IN
AREAS WITH HIGHER WILDFIRE
EXPOSURE COMMISSIONER LADA
MYSELF AND THE DEPARTMENT
CONTINUE TO URGENTLY NEGOTIATE
AND WORK WITH INSURANCE
COMPANIES. SO THEY CAN CONTINUE
TO WRITE AND PARTS OF THE STATE
AND WRITE A PARTICULAR BUSINESS
SECTOR WHERE THERE IS CONTINUE
NEED AND THAT IS SOMETHING THAT.
WE CAN CONTINUE TO TALK ABOUT IN
THE Q. AND A SECTION SECTION I
KNOW PASSED MY COLLEAGUE MIKE
PETERSON TO SPEAK MORE ABOUT OUR
WORK TO MAKE CALIFORNIANS SAFER
FROM WILDFIRES INCLUDING THE
DATA TRENDS THAT WE'VE BEEN SIX
THANK YOU. THANK YOU MICHAEL.
THANK YOU MIKE PETERSON DEPUTY
COMMISSIONER FOR CLIMATE AND
SUSTAINABILITY AT THE CALIFORNIA
DEPARTMENT OF INSURANCE. AS
CHIEF DEPUTY MARTINEZ SAID
COMMISSIONER AS FOLKS THE
DEPARTMENT INSURANCE ON HOW WE
CAN MORE EFFECTIVELY ADDRESS
WILDFIRE AND OTHER CLIMATE
RISKS. UNDER COMMISSIONER HOURS
LEADERSHIP THE DEPARTMENT IS
MADE DATA COLLECTION AND
ANALYSIS OF TOP PRIORITY. BY
ANALYZING MULTIPLE DATA SETS
OVER SEVERAL YEARS THE
DEPARTMENT CAN IDENTIFY TRENDS
AFFECTING THE INSURANCE MARKET.
DATE IN ITS OBJECTIVE ANALYSIS
HAVE DRIVEN ACTIONS BY
COMMISSIONER LARA FOCUSED ON
PRESERVING AVAILABLE RELIABLE
AND AFFORDABLE INSURANCE OPTIONS
FOR HOMEOWNERS AND BUSINESSES.
I'M A COLLECTS DATA FROM
INSURANCE COMPANIES AND IN SOME
CASES DIRECTLY FROM CALIFORNIA
BUSINESSES AND MAKES IT
AVAILABLE THROUGH OUR PUBLIC
WEBSITE. THIS GOES DIRECTLY TO
THE PUBLIC THE LEGISLATURE AND
CONGRESS THE GOVERNOR'S
ADMINISTRATION AND OTHER
STAKEHOLDERS. I WANT TO DIRECT
YOUR ATTENTION TO THE
COMMISSION'S PROGRESS REPORT ON
WILDFIRES IN INSURANCE.
CALIFORNIA IS THE NUMBER ONE
RESIDENTIAL PROPERTY INSURANCE
MARKET IN THE NATION WITH MORE
THAN EIGHT POINT SEVEN MILLION
HOMES INSURED. THE VAST MAJORITY
97% HAVE PRIVATE INSURANCE FROM
THE MID MARKET PLACE. WITH FEWER
THAN 3% OF POLICIES FOR THE
CALIFORNIA FAIR PLAN THE STATE'S
INSURER LAST RESORT. MORE THAN
ONE HUNDRED FIFTEEN INSURANCE
COMPANIES RIGHT HOMEOWNERS
COVERAGE AND MORE THAN TWO
HUNDRED INSURANCE COMPANIES
RIGHT COMMERCIAL COVERAGE. THESE
NUMBERS EVER MADE CONSISTENT AND
COMMISSIONER LARA TOOK OFFICE IN
TWENTY NINETEEN. IN SHORT MOST
CALIFORNIANS HAVE A STRONG
RESIDENTIAL INSURANCE MARKET
WITH MANY AVAILABLE OPTIONS FOR
COVERAGE. HOWEVER NON RENEWALS
BY INSURANCE COMPANIES TO
CONTINUE TO HAPPEN AND AFFECT
PARTS OF OUR STATE. IN OUR
LATEST DATA WHICH IS FROM TWENTY
TWENTY ONE. IT SHOWS AN OVERALL
UPWARD TREND OF NON RENEWAL
SINCE TWENTY EIGHTEEN. BUT WITH
FLUCTUATIONS. THE EARLIEST
APARTMENT IT NON RENEWAL DATE IS
FROM TWENTY FIFTEEN WHEN
INSURANCE COMPANIES NON RENEWED
1-008-200-0159 RESIDENTIAL
POLICIES. THAT NUMBER DECREASED
UNTIL TWENTY EIGHTEEN. BEFORE
THEN RISING AGAIN FOLLOWING THE
DEADLY FIRES IN TWENTY SEVENTEEN
TO TWENTY EIGHTEEN. IT FELL
AGAIN IN TWENTY TWENTY AND FOR
TWENTY TWENTY ONE STANDS AT
APPROXIMATELY TWO HUNDRED FORTY
ONE THOUSAND POLICIES. AT THE
SAME TIME THE TOTAL NUMBER OF
POLICIES HAS ALSO GROWN BY
APPROXIMATELY THREE HUNDRED
SEVENTY PULSE THREE TO SEVENTY
THOUSAND POLICIES SO INSURANCE
COMPANY NON RENEWALS REPRESENT
LESS THAN 3% OF THE OVERALL
MARKET. IN COMPARISON THE NUMBER
OF POLICIES NONINI BY CONSUMERS
SUCH AS WHEN FOR EXAMPLE A HOME
IS SOLD TO A NEW OWNER. ALSO
SHOWS A CONTINUED INCREASE NON
RENEWALS BY CONSUMERS OUT PACE
THOSE BY INSURANCE COMPANIES BY
MORE THAN THREE TO ONE. FOR THE
PRODUCTS EIGHT HUNDRED SEVENTY
SIX THOUSAND CONSUMERS CHANGE
INSURANCE CARRIERS IN TWENTY
TWENTY ONE. WE WILL CONTINUE TO
MONITOR THESE NUMBERS TO THE
LENS OF LONG TERM TRENDS
PROVIDING AN IMPORTANT RESOURCE
. FOR YEARS THE DEPARTMENTS
RESPONDED OVER TWENTY GOVERNOR
DECLARED DISASTERS. IMPLEMENTING
EXISTING LAW BY ISSUING A ONE
YEAR MORATORIUM ON NON RENEWALS
IN THE ZIP CODES ADJACENT TO AN
IN THE FIRE PERIMETER. OF THE
DISASTER DECLARATION. HELLO
AUTHORED BY COMMISSIONER WHEN HE
WAS A MEMBER OF THE STATE
SENATE. IN TWENTY TWENTY ONE
COMMISSIONER ISSUED THE FIRST OF
ITS KIND REPORT ON CLIMATE
INSURANCE WITH RECOMMENDATIONS
FOR FURTHER ACTION BY THE
INSURANCE COMMISSIONER.
LEGISLATURE AND THE GOVERNOR'S
ADMINISTRATION TO PROTECT
CALIFORNIANS. PRODUCING CLIMATE
RISKS AND CLEARLY COMMUNICATING
TO THEM TO THE PUBLIC ARE
IMPORTANT GOALS OF THE REPORT.
IN EARLY TWENTY TWENTY TWO
COMMISSIONER WERE INTRODUCED
SAFE FROM WILDFIRES AND
INSURANCE FRAMEWORK FOR HOME AND
BUSINESS SAFETY DEVELOPED IN
PARTNERSHIP WITH CAL FIRE CALLOW
YES. THE GOVERNOR'S OFFICE OF
PLANNING RESEARCH AND THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION. IN CONSULTATION WITH
CONSUMERS WILD FIRE SAFETY
EXPERTS THE INSURANCE INDUSTRY
AND OTHER STAKEHOLDERS. THEN IN
OCTOBER TWENTY TWENTY TWO
COMMISSIONER LAR ENACTED HIS
REGULATION REQUIRING INSURANCE
DISCOUNTS BASED ON THE SAFER
FROM WILDFIRES FRAMEWORK. WITHIN
JUST A FEW YEARS WE WILL HAVE
GONE FROM 7% OF CONSUMERS WITH
WELFARE RISK HAVING ACCESS TO
LIMITED DISCOUNTS IN TWENTY
NINETEEN TO ONE HUNDRED PERCENT.
UNDER THE CONSISTENT ACHIEVABLE
GUIDELINES OF SAFER FROM
WILDFIRES. THE COMMISSION'S
REGULATION DRESSES ONE OF THE
ROOT CAUSES OF NON RENEWALS BY
REDUCING WILDFIRE RISK THROUGH
THE COMMUNICATION OF CLEAR
ACTIONS. THAT HOMEOWNERS AND
COMMUNITIES CAN TAKE TO REDUCE
THE RISK TO THEIR HOMES AND TO
THEIR ENTIRE COMMUNITY.
CONTINUED INVESTMENTS IN FOREST
HEALTH AND MANAGEMENT BY THE
LEGISLATURE GOVERNOR AND FEDERAL
GOVERNMENT IS IMPORTANT MUST
CONTINUE TO BE ANNUALLY FUNDED.
IN ORDER TO HELP ALL THESE
EFFORTS. COMMISSIONER LAUREN THE
DEPARTMENT OF INSURANCE LOOK
FORWARD TO CONTINUING TO ENGAGE
WITH YOU ALL TO DEVELOP MORE
MEANINGFUL AND LASTING SOLUTIONS
FOR THE INSURANCE MARKETPLACE
WHILE ENSURING. CONSUMERS ARE
PROTECTED AND HAVE ACCESS TO
AFFORDABLE AND ACCESSIBLE
INSURANCE WE ARE HAPPY TO HELP
WITH ANY QUESTIONS. THANK YOU
VERY MUCH. THANK YOU MISTER
PETERSON I WILL NOW INVITE
MISTER MARK SICKENING TO. TO
JOIN US WHENEVER YOU'RE READY
SIR THANK YOU FOR JOINING US
HERE TODAY MORTGAGOR IS A TURN
MEMBERS MY NAME IS MARK SECOND
I'M- VICE PRESIDENT STATE
GOVERNMENT LICENSE FOR THE
AMERICAN PROPERTY CASH INSURANCE
ASSOCIATION. A. P. C. I. A. IS
THE NATIONAL TRADE REPRESENTING
COMPANIES TO WRITE ALL KINDS OF
PROPERTY AND CASUALTY INSURANCE.
HOME AUTO AND COMMERCIAL
PROPERTY. I'D LIKE TO THANK THE
STAFF FOR THE BRIEFING DOCUMENT
WHICH DOES A GOOD JOB OF LAYING
OUT MANY OF THE CHALLENGES. I
WOULD ALSO LIKE TO PRESENT THANK
THE PRESENTERS IN THE CONSUMER
PANEL FOR SHARING THEIR STORIES
WITH US. MY COLLEAGUES FROM THE
DEPARTMENT OF INSURANCE WE WORK
WITH ALL THE TIME TO ADDRESS THE
ISSUES WE FACE IN THE CHARTS
MARKETED ACT. THE FIRST POINT I
WOULD LIKE TO MAKE IS THAT IN
TERMS OF THE COMPETITIVE
BUSINESS WHERE MOST COMPANIES
DESIRE TO GROW. WENINGER CHOOSES
TO STOP WRITING NEW POLICIES ARE
NOT RENEW EXISTING POLICIES IS
SIMPLY BECAUSE THE EXPOSURE AND
COST. EXCEED THE CAPACITY. TO
DELIVER THE PROMISE OF COVERAGE
FOLLOWING A LOSS. WELL THERE ARE
A NUMBER OF UNDERLYING REASONS
FOR THIS IT REALLY COMES DOWN TO
A SIMPLE QUESTION. CAN A COMPANY
CHARGE AN ADEQUATE RATE TO COVER
THE REST ENSURE IF THE ANSWER IS
YES THE NATURE CAN GENERALLY
PROVIDE COVERAGE IF THE ANSWER'S
NO. AND THEN SURE CANNOT. AT THE
BRIEFING DOCUMENT LAYS OUT THERE
MANY INSURANCE COMPANIES IN THE
MARKET. WELL ONE COMPANY MAY NOT
PROVIDE COVERAGE FOR ONE RISK.
FOR MAYBE ANOTHER COMPANY THAT
WEALTH. TO UNDERSTAND THE
CHALLENGES INSURERS FACING
CALIFORNIA. YOU ALSO NEED TO
UNDERSTAND CHALLENGES AFFECTING
THE PROPERTY CASUALLY MARKET
ACROSS THE UNITED STATES. THIS
INCLUDES FOR EXAMPLE THE ROLE OF
REINSURANCE WHICH HAS BEEN
IMPACTED BY GLOBAL EVENTS. THE
GLOBAL CAPACITY. WE INSURANCES
INSURANCE BOUGHT BY INSURANCE
COMPANIES AND OTHER PROGRAMS TO
PAY CLAIMS. SUCH AS THE
CALIFORNIA FAIR. PLAN AT THE
CALIFORNIA EARTHQUAKE AUTHORITY.
THE TRADE LETTER. HAS BEEN SAID
. TO THE CA. PROVIDES A DETAILED
OVERVIEW OF THE CURRENT
CHALLENGES AND THE REINSURANCE
MARKET. IN SHORT THE COR CAT
COST OF CAPITAL HAS SURGED TO
THEIR HIGHEST LEVEL. WITH THE
REINSURANCE RATES SPECIFICALLY
HITTING THEIR HIGHEST LEVEL
EVER. REINSURANCE IS A CRUCIAL
TOOL FOR PROVIDING COVERAGE AND
KAT CATASTROPHIC REGION SO THAT
HELPS ENSURE COMPANIES. HAVE
ENOUGH CAPITAL TO PAY CLAIMS
WITH THE LARGER DISASTER OCCURS.
AS RAIN CAUGHT INSURANCE COSTS
HAVE SURGED ALONG WITH TIGHTER
TERMS A MORE NARROW COVERAGE.
THIS DIRECTLY IMPACTS INSURERS
ABILITY TO WRITE IN WILDFIRE
PRONE AREAS. CONFLATION IS
ANOTHER TOP INSURANCE INDUSTRY
CHALLENGE. IT'S A MATERIALS AND
LABOR HAVE SIGNIFICANTLY
INCREASED. NEEDED TO REBUILD AND
MAINTAIN MY TIRE THE BROADER
INFLATION. TAKEN TOGETHER THESE
FACTS OF FACTORS A SEPARATE THE
COSTS FOR INSURERS OPERATING
CALIFORNIA PARTICULAR LIGHT OF
THE STATE'S COMPLEX RATE
REGULATION SYSTEM WHICH REQUIRES
A LENGTHY APPROVAL PROCESS FOR
RATE INCREASES TO ADJUST TO
THESE TRENDS. SEPARATELY
CALIFORNIA DOES NOT ALLOW THE
NET COST OF REINSURANCE THREE
FACTORED INTO PREMIUM RATES. THE
COMPANY MUST INSTEAD PAY FOR THE
COST OF INSURANCE FROM THEIR
ALLOWABLE PROFITS. THE
CONDOMINIUM MARKET HAS ALSO
PREVENTED. PRESENTED SPECIAL
CHALLENGES. BUILDERS HAVE
EXPRESSED SIMILAR CONCERNS AS
THOSE SHARED BY THE H. AWAY
REPRESENTATIVES. VOTE IN
INSURANCE IT'S BEEN HARD TO FIND
IN THE BETTER MARKET AND THE
PRICES OF THE SURPLUS LINES
MARKET ARE VERY HIGH. ONE
BUILDER TOLD ME HE WOULD MUCH
RATHER PAY 1100% MORE. IN THE
MIDMARKET THEN THE SIXTEEN HOW
2% MARK HISPANOS RECKLESS LINES
MARKET. HOWEVER ONE OF THE
BIGGEST CHALLENGES FACING THE
BETTER MARKET INTEREST CONTINUES
TO BEGIN APPROVAL TO CHARGE
ADEQUATE RATE FOR POLICIES.
AFTER THE TRAGIC SURFSIDE CONDER
COLLAPSE IN FLORIDA TWO YEARS
AGO. THERE'S BEEN INCREASED
ATTENTION A CONDO MAINTENANCE
ISSUES OF CONCERN H. O. A.
BOARDS OFTEN STRUGGLE TO BALANCE
PROPERTY MANAGEMENT TO KEEP H.
AWAY FEES. AFFORDABLE FOR
RESIDENTS ESPECIALLY FOR OLDER
PROPERTIES. MANY DEVELOPMENTS
WERE BUILT BEFORE THE NEW
WELFARE CUTS WERE TOPIC. FOR
MEDICATION ALSO PRESENTS UNIQUE
CHALLENGES FOR THESE
COMMUNITIES. FORTUNATELY THE
BUILDING INDUSTRY SPEARHEADING
EFFORTS TO BUILD NEW COMMUNITIES
THAT WILL BE WELFARE RECESSED.
ANOTHER CHALLENGES HELPING
CONSUMERS RECOGNIZE THE REGION
THEY LIVE IN IS A HIGH RISK FOR
WILDFIRES AND VALUE MEDICATION.
WHAT ORGAN RELEASED NEW FIRE
MAPS MORE THAN SEVEN HUNDRED
PEOPLE FILED COMPLAINTS IN THEIR
HOMES WERE NOT A WELFARE RISK.
THOUGHT THERE IS A NEED AN
OPPORTUNITY APPROVED CONSUMER
EDUCATION REGARDING BENEFIT.
WHILE FOR MITIGATION ACTIONS.
THE OF FORCE RECENTLY WORK ON
REGULATE DOUBLE MUCH RICK. IN MY
BUS SONG WITHIN FEET OF HOUSE
WHICH MAY. MOVING VEGETATION.
THE DEPARTMENT ALL PLAYED FOR
USED TO ADOPT THE REQUIREMENT.
EVEN THOUGH SCIENCE CLEARLY
REQUIRES IT BECAUSE THEY FEARED
A SIMILAR BACKLASH THE SENATE
OREGON. ONE COMPANY TOLD ME THEY
LOST A POLICY HOLDER. BECAUSE
THE COMPANY REQUESTED THE
POLICYHOLDER MILFORD TWO SHRUBS
RIGHT UP AGAINST THE HOUSE WHICH
MAY POSE A SIGNIFICANT RISK OF
MEMBERS. BY THE HOUSE. INSURANCE
ASSEMBLY THE COSTA CLAIM TO KEEP
RATES AFFORDABLE WE MUST FOCUS
ON REDUCING LOSSES WHICH IS
ACHIEVED BY REDUCING THE RISK.
WE CAN'T HAVE COMMUNITIES
REBUILD AND WAVE THE NEW WELFARE
BUILDING CODES WE NEED
COMMUNITIES TO FOLLOW THE
EXAMPLE THE CITY PARADISE. WHICH
PASSED AN ORDINANCE REQUIRING
THE COMMUNITY BE REAL BUT RESULT
FOR WELFARE RESISTANCE. AT THE
OPPORTUNE WORK WITH THE
COMMITTEE THE LEGISLATURE
DEPARTMENT INSURANCE AND ALL THE
STAKEHOLDERS TO WORK OUT
SOLUTIONS TO THE CHALLENGES WE
FACE TODAY THANK YOU. THANK YOU
VERY MUCH FOR THAT PRESENTATION
I'D LIKE TO INVITE SEREN TAYLOR
TO COME UP NEXT HE WILL. BE ABLE
TO JOIN US IN FRONT THANK YOU.
THE SPECIAL. YEAH. SIX OKAY.
GOOD OKAY. GOOD MORNING MADAM
CHAIR AND MEMBERS SEREN TAYLOR
ON BEHALF OF THE PERSONAL
INSURANCE FEDERATION CALIFORNIA
ON HIS PATH. AND THE NATIONAL
ASSOCIATION OF MUTUAL INSURANCE
COMPANIES NON ISLAMIC. GREATLY
APPRECIATE THE OPPORTUNITY TO
SHARE PERSPECTIVE TODAY- WE
PROVIDED THE COMMITTEE WITH
DETAILED COMMENT LETTER- THAT
YOU MAY WISH TO REVIEW I ASSURE
YOU IT'S A GREAT READ. AND I'LL
TRY TO SUMMARIZE IT HERE FOR YOU
TODAY AND FIVE MINUTES OR SO. IN
SHORT IT'S A CHALLENGING TIME
FOR EVERYBODY- OF THE TWENTY
MOST DESTRUCTIVE WILDFIRES IN
CALIFORNIA'S RECORDED HISTORY.
THIRTEEN HAVE OCCURRED SINCE
TWENTY SEVENTEEN. DESTROYING
NEARLY FORTY THOUSAND
STRUCTURES. TAKING A HUNDRED
FORTY EIGHT LIVES ENSURING
MILLIONS OF ACRES. IN PARTICULAR
THE TWENTY SEVENTEEN TO TWENTY
EIGHTEEN WILDFIRE SEASONS WERE
THE MOST COSTLY IN CALIFORNIA
HISTORY. INSURERS LOST OVER
TWENTY BILLION DOLLARS WHICH
WIPED OUT TWO TIMES THEIR
COMBINED UNDERWRITING PROFITS
FOR THE PRIOR TWENTY SIX YEARS.
NOW SEVERAL FACTORS HAVE LED TO
THE INCREASE IN SEVERE WILDFIRE
EVENTS OVER THE PAST FEW YEARS
CLIMATE CHANGE ALONG WITH
POPULATION SHIFTS TOWARD THE
WILDLAND URBAN INTERFACE HAVE
CONTRIBUTED TO AN INCREASE IN
THE IMPACTS OF WILDFIRES. NOW
FORTUNATELY MORE FOCUS IS BEING
PLACED ON WAYS THAT PEOPLE CAN
PREVENT OR MITIGATE. THE DAMAGE
TO THEIR HOMES AND WE'VE SEEN
SIGNIFICANT NEW FUNDING IN
RECENT STATE BUDGETS TO INCREASE
WILDFIRE RESILIENCE. AND I KNOW
MANY OF YOU PLAYED A ROLE IN
SECURING THOSE FUNDS. IN
ADDITION COMMISSIONER LARA'S
TEAM HAS WORKED DILIGENTLY TO
STABILIZE THE HOMEOWNERS
INSURANCE MARKET. ESPECIALLY
WITH RESPECT TO WILDFIRE THE CDI
HAS BEEN APPROVING- HOMEOWNERS
RATES THAT INCENTIVIZE INSURERS
TO WREAK RECOGNIZE THE VALUE OF
MITIGATION EFFORTS. TAKEN BY
HOMEOWNERS AND COMMUNITIES. NOW
HOWEVER WHILE THE PROGRESS IS
GOOD IT HASN'T BEEN ENOUGH AND
WE ALL RECOGNIZE THAT THERE ARE
TOO MANY PEOPLE STILL STRUGGLING
TO FIND THE COVERAGE THEY NEED.
SO WHAT SHOULD WE DO. RIGHT FROM
OUR PERSPECTIVE THERE ARE SOME
CHALLENGES ASSOCIATED WITH THE
CURRENT STATE RULES WHICH WERE
DEVELOPED THIRTY FIVE YEARS AGO.
LONG BEFORE THE ADVENT OF
CLIMATE CHANGE IMPACTS AND THE
ERROR OF TECHNOLOGY THAT IS
PRADA SMARTPHONES SMART CARS AND
SMART CLIMATE MODELS. THESE
RULES WORK FINE FOR MANY DECADES
BUT THEY DON'T RECOGNIZE THE
RECENT IMPACT CLIMATE CHANGE
POSES TO CALIFORNIA PROPERTIES.
THEY ALSO INCLUDE ELEMENTS THAT
NOW DISCOURAGE INSURERS FROM
INCREASING AVAILABILITY OF
COVERAGE FOR PROPERTIES IN
WILDFIRE AREAS. AS A RESULT THE
HOMEOWNERS INSURANCE MARKET HAS
FALLEN INTO CAPACITY CRISIS.
WITH MANY CARRIERS WHO WISH TO
SERVE CALIFORNIA INSTEAD
REDUCING NEW BUSINESS CAPACITY
AND NON RENEWING PROPERTIES
BECAUSE THEY CAN ACHIEVE
APPROPRIATE RETURNS. NOW LET ME
GIVE YOU SOME EXAMPLES WHERE
CALIFORNIA RULES THAT JUST DON'T
ALIGN WELL WITH THE GOAL OF
INCREASED AVAILABILITY.
UNDERSTANDING THAT THESE RULES
LONG PREDATE THE CURRENT
INSURANCE COMMISSIONER. AND YOU
KNOW WE'RE NOT TRYING TO. THE
SIZE. WHAT HE'S DOING BUT BUT
THE RULES RIGHT NOW THEY DON'T
ALLOW THE NET COST OF
REINSURANCE AND RATEMAKING WHICH
MY COLLEAGUE REFERRED TO.
REINSURANCE IS INSURANCE FOR
INSURERS THAT'S HOW THEY SPREAD
CALIFORNIA WILDFIRE RISK AROUND
THE GLOBE. PROTECT THEMSELVES
FROM INSOLVENCY. AND ENSURE THEY
CAN KEEP THE PROMISE TO PAY
CLAIMS AFTER A LOSS. DOING
WITHOUT REINSURANCE REDUCES AN
INSURER'S ABILITY TO SPREAD RISK
AND PROVIDE COVERAGE TO MORE
WILDFIRE EXPOS PROPERTIES. SINCE
THE NET COST OF INSURANCE IS NOT
PERMITTED EXPENSE ENSURE MUST
EITHER COVER THE COST OF ITS OWN
POCKET. OR NON RENEW THE
RISKIEST PROPERTIES TO REDUCE
AND MAINTAIN FINANCIAL STRENGTH
. SO ANOTHER RULE WE SHOULD LOOK
AT IS ALLOWING THE USE OF
CATASTROPHE MODELS CALIFORNIA
REGULATIONS MAKE IT ILLEGAL TO
INCLUDE CLIMATE CHANGE
PROJECTIONS AND FIRE INSURANCE
RATES. INSURERS MUST ESTIMATE
THEIR FUTURE LOSSES BY LOOKING
BACKWARDS AT AVERAGE HISTORIC
LOSSES FOR THE PAST TWENTY
YEARS. WHAT DOES NOT REFLECT THE
CLIMATE RELATED RISKS FOR THE
BENEFIT OF NEW MITIGATION
STRATEGIES. SO THE IMPACTS OF
CLIMATE CHANGE IN CALIFORNIA ARE
READILY APPARENT DROUGHT FLOODS
FIRES WILDFIRES MUDSLIDES. AS A
CONSTANT TOPIC OF POLICY MAKING
IN THE LEGISLATURE. YET INSURERS
ARE FORCED TO PRETEND THERE ARE
NO FUTURE CLIMATE IMPACT CLIMATE
CHANGE IMPACTS FOR PURPOSES OF
INSURANCE RATES. IT SHOULD BE
NOTED THAT CALIFORNIA IS THE
ONLY STATE THAT DOES NOT ALLOW
CONSIDERATION OF REINSURANCE
COSTS AND RATEMAKING. AND
REQUIRES HISTORICAL DATA TO
DETERMINE CATASTROPHE LOSSES.
WITH THE INCLUSION OF WILDFIRE
CATASTROPHE MODELS AND
REINSURANCE COSTS. INSURERS
COULD GREATLY INCREASE INSURANCE
AVAILABILITY AND FIRE RISK AREAS
AND WOULD BE ABLE TO HELP THE
POPULAR CARE PLAN. HOWEVER
WITHOUT THESE ENHANCEMENTS
INSURERS WILL INCREASINGLY BE
FORCED TO EVALUATE PARTICIPATION
AND CAPACITY IN THE MARKET. WE
ARE KEENLY AWARE OF THE
CHALLENGES ARE POLICY HOLDERS
AND YOUR CONSTITUENTS FACE. WE
LOOK FORWARD TO WORKING WITH CDI
. THE LEGISLATURE. AND ALL
STAKEHOLDERS TO ENSURE HEALTHY
AND COMPETITIVE MARKET WITH
GREATER INSURANCE AVAILABILITY.
EXCUSE ME. THANK YOU. THANK YOU
VERY MUCH FOR THAT PRESENTATION-
AND NOW WE WOULD LIKE TO INVITE-
FORWARD TO PRESENT- MRS ROACH
AND MR FELICIANO FROM THE FAIR
PLAN WELCOME. WE TAKE A SEAT
THANK YOU THANK YOU SEVERAL HIGH
UP IF WE HAVE A HIGH.
WELCOME TO ALL OF YOU MAY
PROCEED WHEN YOU'RE READY THANK
YOU FOR JOINING US TODAY. YEAH
MY OWN YES GOOD MORNING MADAM
CHAIR MEMBERS COMMITTEE ARMAND
FELICIANO ON BEHALF THE FAIR
PLAN I JUST A QUICK OPENING
REMARKS- FIRST OF ALL THANK YOU
FOR HOLDING THIS HEARING I THINK
THAT THE TIMING IS. PRETTY APT
AT THIS POINT ACCUTANE WHAT
COULD BE NEARING. THE GOAL THE
PROPONENT DAYS HOUSES TO EDUCATE
AND PROVIDE SOME INFORMATION
SOME PEOPLE IN PUBLIC POLICY
CONSIDERATIONS AT STAKE TODAY.
AND YOU KNOW THE GOAL IS REALLY
TO CONNECT THE DOTS I YOU'LL SEE
AFTER THAT HAPPENED IS THAT WITH
THE PRESENTATION STATES ALL
CONNECTED- IT MIGHT SEEM LIKE AN
H. O. E. ISSUE TODAY BUT THIS
ACTUALLY. IS NOT ON THAT EVEN A
WILDFIRE ISSUE ANYMORE HE COULD
TRICKLE DOWN TO OTHER PARTS OF
THE STATE SO WITH THAT THE FAIR
PLAN IS PREPARED TO CRY DID PART
OF A MISSION THAT YOU NEED. AND
THEN I'LL PICK IT UP. TO ANSWER
QUESTIONS AS WELL. WITH THAT I
WANT TO TURN IT OVER TO THE
PLEDGE TO SPEAK TO A ROACH.
PRESIDENT GOOD MORNING YOU FOR.
TODAY I NEVER JUST- I MISSED
WHICH IS A BACK ON A FAIR PLAY.
AND- WE'LL TALK SOME OF THE
ISSUE SAY YOU'VE FROM- EVERYONE
ELSE TEST. AT HELD AFFECT THE
FAIR PLAN A LITTLE BIT DIFFERENT
BECAUSE OUR STATUTE PROVIDES-
FOR DIFFERENT. APPLICATION OF
THESE RULES FOR OUR ORGANIZATION
SO- THE FAIR PLAN WAS CREATED IN
THE NINETEEN SIXTIES BY THE
LEGISLATURE IN RESPONSE TO THE
WATTS RIOTS AND THEN SUBSEQUENT
BALL- BRUSHFIRES SHORTLY
THEREAFTER WE ORIGINALLY STARTED
IN- ONLY SOME PARTS OF THE
STATE'S IN WAS LATER EXPANDED TO
COVER THE ENTIRE STATE OF
CALIFORNIA. THE PURPOSE OF THE
FAIR PLAN REMAINS THE SAME SINCE
IT WAS ESTABLISHED- BY THE
LEGISLATURE WHICH IS TO PROVIDE
INSURANCE FOR- PROPERTY OWNERS.
WHO CANNOT GET INSURANCE IN THE
ADMITTED OR SURPLUS LINE
MARKETS. SO THE STATUTE ACTUALLY
STATES THAT THE ORDER THE
CONSUMER SUPPOSED TO GO TO IS
ONE OF THE HUNDRED AND EIGHTEEN.
ADMITTED CARRIERS IN THE STATE
OR ONE OF THE HUNDRED AND THIRTY
TWO SURPLUS LINES CARRIERS IN
THE STATE AND IF INSURANCE IS
AVAILABLE IN EITHER OF THOSE TWO
MARKETS. THEN THEY COME TO THE
FAIR PLAN FOR BASIC PROPERTY
INSURANCE- THAT'S BEEN OUR
MISSION SINCE THE LATE NINETEEN
SIXTIES AND ALTHOUGH WE HAVE
CHANGED SINCE THEN WE CONTINUE
TO. EXECUTE ON THAT MISSION. SO
WHERE ARE WE TODAY- YOU CAN SEE
BY THE CHART- WE'RE DEFINITELY
IN GROWTH MODE IN THE STATE OF
CALIFORNIA WHICH IS OBVIOUS FROM
THE- COMMENTS WE HEARD EARLIER
TODAY. IN THE LAST FIVE YEARS
WE'VE MORE THAN DOUBLED IN THE
NUMBER OF POLICIES THAT WE
ENSURE IN THE STATE. AND AT THE
SAME TIME OUR EXPOSURE IN THE
STATE HAS GROWN ALMOST OVER FOUR
TIMES IN THAT SAME PERIOD. SO WE
ARE DEFINITELY IN GROWTH MODE
CONTINUING TO PROVIDE BASIC
PROPERTY INSURANCE- WE
UNDERSTAND THE ISSUES TODAY. AND
THE FACT THAT THIS IS A
BALANCING ACT RIGHT THAT IS IF I
COULD COME UP HERE AND TELL YOU
THERE'S ONE SINGLE ANSWER I
WOULD THERE'S NO NOT ONE SINGLE
ANSWER I DON'T THINK. THAT NO
EASY ANSWER OUR GOAL HERE TODAY
IS ARMAND SAID IS TO PROVIDE YOU
WITH THE INFORMATION YOU NEED.
TO MAKE THOSE TOUGH DECISIONS-
ONE OF THE THINGS I WANT TO
POINT OUT IS THAT WE ARE NOT IN
A GOOD FINANCIAL POSITION AT THE
CALIFORNIA FAIR PLAN- WE ARE NOT
FOR PROFIT. ORGANIZATION WE DO
NOT CARRY SURPLUS LIKE A
TRADITIONAL INSURANCE CARRIER
WOULD KERRY. WE ARE BACKED BY
THE MEMBER COMPANIES OF THE
STATE. SO WHAT THAT MEANS IS IF
WE DON'T HAVE ADEQUATE RATE SO
WE CAN COVER OUR LOSSES. AND WE
DON'T HAVE REINSURANCE AVAILABLE
WE TURN TO THE PRIVATE MARKET
WITH AN ASSESSMENT. THAT MEANS
WE SEND A BILL TO ALL THE OTHER
INSURANCE COMPANIES IN THE STATE
AND SAY HEY WE CAN'T PAY THIS
AMOUNT OF MONEY AND YOU NEED TO
PITCH IN. AND IT'S BASED ON
MARKET SHARE FOR EACH COMPANY IN
TERMS OF HOW MUCH THEY HAVE TO
PAY OF THE BILL. WHAT OUR
CONCERN IS THAT AS WE EXPAND
COVERAGES IN THE FAIR PLAN. AND
AS WE TRY TO FILL THAT NEED IN
THE MARKET WERE PUT IN A
POSITION OF BECOMING AN INSURER
OF FIRST RESORT INSTEAD OF THE
INSURER OF LAST RESORT. IN THE
PAST THREE YEARS YOU CAN SEE
SOME OF THE THINGS WE'VE ALREADY
DONE WE WORK CLOSELY WITH THE
LEGISLATION THE LEGISLATORS WITH
THE DEPARTMENT OF INSURANCE WITH
STAKEHOLDERS TO IDENTIFY WHERE
THE- WHERE THE NEEDS ARE. AND
MEET THOSE NEEDS AS WE CAN AT
THE FAIR PLAN. WITH X. OFFERED
EXTENDED DWELLING COVERAGE WE'VE
INCREASED OUR DWELLING
COMMERCIAL LIMITS WE'VE
IMPLEMENTED ONLINE CREDIT CARD
PAYMENTS- LEAVE EXTENDED THE
COVERAGE TO FARM RESTS. AND
WE'RE WORKING WITH THE
DEPARTMENT RIGHT NOW. ON THE
HOME HARDING DISCOUNTS IN
IMPLEMENTING THOSE. AND THEN
FINALLY TO DO A MONTHLY PAY PLAN
TO MAKE IT EASIER FOR CONSUMERS
TO PURCHASE INSURANCE WITH THE
FAIR PLAN. IN ADDITION TO THOSE
THINGS WE'VE DONE. THERE ARE
SOME THINGS NOW. THAT WE ARE
HEARING TODAY. AND THAT WE'VE
HEARD FROM STAKEHOLDERS AND THE
DEPARTMENT- THAT WE NEED TO
EXPAND OUR COVERAGES. SO THE
DEPARTMENT HAS ORDERED US TO
PROVIDE BASIC. INSTEAD OF BASIC
COVERAGE LIKE THE STATUTES
SUPPORT IT. TELLS US. THEY HAVE
ASKED US TO YOUR ORDERED US. TO
PROVIDE HOMEOWNERS INSURANCE.
OUR CONCERN BEING THAT THAT PUTS
US IN DIRECT COMPETITION WITH
THE STANDARD MARKET AND WHEN
THAT HAPPENS WE'RE NOT FOLLOWING
THE STATUTE WHICH SAYS WE SHOULD
NOT BE IN DIRECT COMPETITION
WITH THE MARKET BUT RATHER FOR
PROVIDING STABILITY. AND
INSURANCE BASIC PROPERTY
INSURANCE FOR THOSE WHO CAN'T
GET INSURANCE SOMEWHERE ELSE.
THE OTHER TWO THINGS IT- SOME OF
WHICH WE'VE HEARD TODAY. IS THE
H. AWAY COVERAGE RIGHT A REAL
ISSUE THERE'S NO QUESTION ABOUT
IT AND WE UNDERSTAND THE
CONCERNS OF THE HOAS AND THE
CONCERNS OF CONSUMERS. AND
THERE'S ALSO A BILL- PROPOSED
RIGHT NOW FOR US START COVERING
CANNABIS- WHICH WOULD INCLUDE
HOMEOWNERS WHO ARE GROWING
CANNABIS. AND CANNABIS FARMS.
ARE CONCERNED PART OF OUR
CONCERN ABOUT THOSE TWO ISSUES
IS THAT WE DON'T HAVE FREE
INSURANCE FOR THOSE SO WE'VE
GONE OUT WE'VE DONE OUR RESEARCH
WE TALKED TO OUR BROKERS THEY'VE
TALKED TO REINSURERS. NOBODY
WANTS TO RE INSURE THOSE RISKS
THE STATE OF CALIFORNIA
PARTICULARLY IN WILDFIRE AREAS.
WHICH MEANS THAT IF THE
LEGISLATION AND OR THE CD I
DECIDE THIS IS WHERE WE NEED TO
GO WE WILL DO WHAT WE NEED TO
DO. TO PROVIDE THAT INSURANCE.
THE IMPLICATIONS OF THAT THOUGH
WITHOUT A REINSURANCE BUFFER
MEANS THAT WHEN WE RUN OUT OF
MONEY WE TURN TO THE PRIVATE
MARKET. WHEREAS TODAY. BE A
RADICALLY IF WE HAVE ENOUGH
MONEY WE PAY OUR CLAIMS. IF IT
GOES BEYOND WHAT WE HAVE WE MAY
NEED SOME HELP FROM THE PRIVATE
MARKET. AND THEN RE INSURANCE
KICKS IN SO THERE'S A BUFFER
BETWEEN WHAT WE HAVE THESE BIG
LOSSES BETWEEN WHAT WE CAN PAY.
AND WHEN WE HAVE TO START
ASSESSING THE MARKET. AND WE
START ASSESSING THE MARKET THEN
THEY HAVE TO PAY OUR CLAIMS IN
ADDITION TO THE CLAIMS THEY HAVE
IN THOSE SAME AREAS. SO WE'RE
GONNA TALK A LITTLE BIT MORE
ABOUT THAT AS WE GET INTO THIS
BUT IF YOU LOOK AT THE NEXT
SLIDE. THESE ARE SOME OF THE
POTENTIAL CONSEQUENCES OF SUCH
ACTIONS. RIGHT THE IN YOU'VE
HEARD SOME OF THEM ARE YOU
TAKING PLACE TODAY IS THAT THE
CONSUMERS WERE TALKING ABOUT.
THEY DON'T HAVE THERE'S NO
AVAILABILITY OF COVERAGE THEY'RE
HAVING A HARD TIME FINDING
COVERAGE THAT COVERAGE IS VERY
EXPENSIVE. THIS WILL EXASPERATED
AS PROBLEMS WE THINK. AS WE
CONTINUE TO LOOK AT LOOMING
ASSESSMENTS TO THE INDUSTRY.
YOUR SMALLER AND MIDSIZE
CARRIERS MAY DETERMINE THAT THEY
CAN'T AFFORD THAT. AND THEY'LL
START CONTINUING TO PULL BACK IN
THE INDUSTRY. SO THEY'LL BE
FEWER- OPTIONS FOR CONSUMERS NOT
JUST IN THE WILD FIRE AREAS BUT
THROUGHOUT THE STATE ALL OF THE
CONSTITUENTS WERE GOING TO BE-
PART OF THIS AND I THINK WE TEND
TO THINK OF THE- FAIR PLAN AS
JUST A WILDFIRE ISSUE AND- IT'S
NOT ANYMORE. IT'S ACROSS THE
STATE. EIGHT AND THEN IF WE DO
ASSESS. WHO'S GOING TO PAY.
RIGHT THESE INSURANCE COMPANIES
DON'T HAVE A BUCKET OF MONEY
THEY CAN JUST PULL FROM AN- AND
ABSORB. RIGHT EVENTUALLY THAT
MONEY'S GOING TO TRICKLE DOWN TO
THE POLICY HOLDERS IN HIGHER
PREMIUMS. RIGHT AND REALLY THE
DECISION NOT AN EASY DECISION
THE DECISION ENDS UP BEING WHO'S
GOING TO PAY. THE PEOPLE WHO ARE
LIVING IN THOSE AREAS. OR THE
PEOPLE WHO ARE IN THE STATE WHO
ARE NOT LIVING IN THOSE AREAS
AND THEY'RE GONNA SUBSIDIZE THAT
INSURANCE. BECAUSE SOMEWHERE THE
MONEY HAS TO COME. AND WHEN
THERE'S NO REINSURANCE FOR
CERTAIN TYPES OF RISKS. THAT
ASSESSMENT BECOMES MORE REAL.
AND BECOMES. IT'S GOING TO HIT
SOONER. RIGHT WE'RE TRYING TO DO
WHAT WE CAN DO AND WORK WITH THE
DEPARTMENT AND THE LEGISLATORS
TO MAKE SURE. THAT WE DO
EVERYTHING WE CAN NOT TOUGH TO
ASSESS THE INDUSTRY. BUT IF WE
START ENSURING PLACES THAT WE
CAN'T GET REINSURANCE FROM. IT'S
GOING TO BE IMMINENT. SO TO TALK
A LITTLE BIT ABOUT THAT INCREASE
COST AND WHAT THE LEGISLATION IS
DONE IN THE PAST ABOUT THAT A
MINUTE TURN OVER TORN DOWN THANK
YOU VICTORIA. SO THE SOLVENCY OF
THE FAIR PLAN AND ASSESSMENT
ISSUE IT'S ACTUALLY IT IS NOT
YOU IN THE MID NINETEEN
NINETIES. ASSEMBLY PASS AB
SEVENTEEN FIFTY FOUR. AND BASED
ON THAT IS THREE YOU'LL SEE AT
THE TIME WHAT THEY'RE LOOKING AT
IS TWO HUNDRED SIXTY MILLION
DOLLARS SETTLEMENT ON THE
INDUSTRY. AND SO I'M NOT GONNA
READ THE COURT BUT EVEN THEN THE
LEGISLATURE WAS CONCERNED. ABOUT
SOCIALIZING THIS COST TO
EVERYONE ELSE SO. IN RESPONSE TO
THAT AB SEVENTY FIFTY FOUR SAYS
THAT THE FOR THE PENSIONS OF
ADEQUATE RATES OR ACTUALLY
THOUGHT RATES IN PLAIN ENGLISH
THAT MEANS ALLOWING THEM. TO
INCLUDE EXPENSES THEY NEED TO
CODE IS HIGH RISK PLACE. SO
THAT'S WHAT HAPPENED IN IN MID
NINETEEN NINETIES THE LAW STILL
. INTACT- WHAT'S DIFFERENT TODAY
. WELL CONSERVE STILL THERE
RIGHT NOW WITH THE H. AWAY ISSUE
. AND EDITORIAL TOUCH UPON SORT
OF THEIR WILDFIRE EXPOSURE IN
TWENTY THREE WE'RE NOT TALKING
BILLIONS AT THIS POINT. AS FAR
AS THE POTENTIAL ASSESSMENT SO.
THAT MIGHT AND- THE CONCERN IS
NOT CHANGED AT THE END HOUSES IS
STILL THERE THE ONLY DIFFERENCE
NOW IS SHE GOT A FRAGILE MARKET.
AND THEM THAT WHAT'S AT STAKE AS
FINANCIALS EVEN GREATER. THANK
YOU. SO JUST TO GIVE YOU A SENSE
OF THE EXPOSURE WE ALREADY HAVE
IN CALIFORNIA AND AGAIN- IT'S
GREATER THAN A WELFARE ISSUE BUT
THAT'S WHERE WE KIND OF FOCUS
OUR- OUR- ATTENTION HERE BECAUSE
THAT'S WHERE THE CONCENTRATION
OF RISK IS. THESE ARE THE FIVE
HIGHEST CONCENTRATION OF RISK
AREAS IN NORTHERN CALIFORNIA AND
SOUTHERN CALIFORNIA NOT
NECESSARILY THE TEN HIGHEST IN
THE STATE BECAUSE WE KIND OF
DIVIDED IT TO SHOW YOU. NORTH
AND SOUTH. IF YOU LOOK AT A
PLACE LIKE LAKE ARROWHEAD. WE'RE
TALKING ABOUT SEVEN POINT SEVEN
BILLION DOLLARS IN EXPOSURE IN A
SEVEN MILE QUARTER CIRCLE.
FLAVORFUL CIRCUITS COURSE CIRCLE
SEVEN MILES FROM HERE TO HERE-
SEVEN POINT SEVEN BILLION TO GET
TO GIVE YOU AN IDEA OF THE
GROWTH RATE IN THE LAST FIFTEEN
MONTHS THAT'S GROWN BY TWO
BILLION DOLLARS. AND THEY KEEP
AND IT CONTINUES TO GROW EVERY
QUARTER WE RUN THESE NUMBERS IT
CONTINUES TO GROW. IF YOU LOOK
AT REAL FIRES. RIGHT AND IT'S
HARD TO THINK RIGHT I MEAN. TO
KNOW HOW DEVASTATING IT WOULD
BE. FOR FIRE TO GO THROUGH LIKE
ERROL HAD. FOR THE PEOPLE WHO
LIVE THERE. BUT THEN TO THINK
ARE WE GOING TO HAVE ENOUGH
MONEY TO COVER THEIR LOSSES
WHO'S GOING TO PAY FOR ALL THOSE
LOSSES SO THEY CAN REBUILD THAT
THEY CAN START REBUILDING THEIR
LIVES. SO A REAL EXAMPLE IS
PARADISE. IF YOU TAKE THE SAME
FIREMEN FROM PARADISE TODAY. AND
HE MOVED OUT ABOUT FORTY MILES
SOUTH SO KIND OF BETWEEN. THE
YUCCA VALLEY IN GRASS GRASS
VALLEY INDIANA. YOU CAN SEE. IF
YOU PUT THAT SAME FIRE OUT THERE
WE'RE TALKING ABOUT FIVE BILLION
DOLLARS IN LOS. THAT'S A FIRE
THAT ALREADY HAPPENED THAT'S A
REAL THING. RIGHT FIVE BILLION
DOLLARS VIA THAT SAME FIRE
BURNED TODAY RIGHT OUTSIDE
ACROSS VALLEY. THESE ARE REAL
ISSUES AND THE FAIR PLAN IS NOT
IN THE FINANCIAL POSITION. TO
ADDRESS THOSE. WE DON'T HAVE THE
FUNDS ON HAND. WE DON'T HAVE
ENOUGH REINSURANCE. IN WHERE
WE'RE AT A BREAKING POINT. THE
GOOD NEWS IS WE CAN'T BREAK
BECAUSE THE INDUSTRY IS THERE TO
CATCH US THE BAD NEWS IS THE
INDUSTRY'S THERE TO CATCH US AND
THAT MEANS THAT EVERY. POLICY
HOLDER IN THE STATE OF
CALIFORNIA. IT'S GOING TO HAVE
TO PICK UP SOME OF THAT COST.
THIS IS KIND OF OUR DEPICTION OF
WHAT IT LOOKS LIKE. SO YOU'VE
HEARD A LOT TODAY ABOUT
REINSURANCE IN THE NET COST OF
REINSURANCE. I'D LIKE TO REMIND
THE COMMITTEE THAT. THE FAIR
PLAN IS UNDER A DIFFERENT
REGULATION. THEN THE ADMITTED
MARKET. SO IN OUR BRIDGE
REINSURANCE AND RATES. ARE BIG
COMPONENT AND THERE ARE LOTS OF
CRACKS ALREADY IN THAT BRIDGE.
WE ARE AUTHORIZED BY STATUTE
CREATED BY THE LEGISLATURE. TO
PURCHASE REINSURANCE. UNLIKE THE
ADMITTED MARKET IT'S IN OUR
STATUTE. AS ARMAND TALKED ABOUT.
OUR STATURE ALSO SAYS WE MUST
HAVE ACTUARIALLY SOUND RATES.
ACTUALLY SOME RATES CAN ONLY BE
ACHIEVED IF YOU INCLUDE ALL OF
YOUR EXPENSES IN THAT RATE
MAKING. THAT'S NOT WHAT'S
HAPPENING TODAY WE'RE NOT
ALLOWED TO SKATE TO TAKE THE NET
COST OF REINSURANCE AND INCLUDED
IN OUR RATE MAKING. NOW I'M
GONNA GO SAY. THERE THERE
DEFINITELY IS A BALANCE YOU'RE A
YOU HEARD PEOPLE COMPLAIN ABOUT
THE COST OF INSURANCE AND IT
WILL RAISE THE COST OF OUR
INSURANCE. BUT IT ALSO PROTECTS
THE CONSUMERS WHO HAVE INSURANCE
WITH US. PROVIDE STABILITY FOR
THE MARKET BECAUSE IT LESSENS
OUR NEED TO DO ASSESSMENTS AND
BILL THE INDUSTRY. IN THE EVENT
OF A OF A WILDFIRE. IF WE DON'T
HAVE ADEQUATE RATES. THE AN
INNOCENCE. OUR BANK BECOMES THE
INDUSTRY FAMILY START SENDING
BILLS OUT FOR THEM TO HELP US
PAY WHEN WE HAVE WILD FIRES. THE
WAY OUR REINSURANCE IS SET UP IS
LIAM WE HAVE TO PAY PART OF OUR
CLAIMS IN THE EVENT OF A
WILDFIRE THEN THE RE INSURANCE
KICKS IN. THEN THE REINSURANCE
AND THE PRIVATE MARKET KICK IN
TOGETHER AND THEN IT GOES TO THE
PRIVATE MARKET. IN AN AREA LIKE
LAKE ARROWHEAD AT SEVEN POINT
SEVEN BILLION DOLLARS OF
EXPOSURE WE'RE TALKING ABOUT
FIVE TO SIX BILLION DOLLARS IN
ASSESSMENT TO THE INDUSTRY.
LOWE'S COMPANIES COMPANIES ARE
NOT GOING TO BE ABLE TO SURVIVE
WITHOUT. WE HAVE TO LOOK FOR
OTHER SOLUTIONS. WE HAVE TWO
HUNDRED AND TWENTY BILLION
DOLLARS ACROSS THE STATE AND
EXPOSURE. WHEN YOU LOOK AT
OPTIONS FOR THE HOAS WHICH AGAIN
COMPLETELY UNDERSTAND THE NEED
THERE BUT WHEN YOU LOOK AT
OPTIONS FOR THE H. AWAY AND
INCREASING OUR LIMITS. A NEW
LOOK AT CANNABIS COVERAGE YOU'RE
LOOKING AT AREAS WHERE THAT
BUFFER REINSURANCE IS NOT THERE
. AND IT WILL COLLAPSE WE WILL
COLLAPSE IN THOSE AREAS AND RELY
HEAVILY ON THE- ADMITTED MARKET.
TO HELP US WHEN THOSE WILDFIRES
HAPPEN. SO HERE'S A LIST I'M NOT
GOING TO GO THROUGH THESE
BECAUSE WE KIND OF COVERED A
MALL FOR- THINGS WE CAN DO FOR
FAIR PLAN- SUSTAINABILITY I JUST
WANT TO REITERATE. THAT THERE
ARE NO EASY ANSWERS. I'M NOT
ADVOCATING ONE WAY OR THE OTHER
I'M TRYING TO PROVIDE EVERYBODY
WITH FACTS SO THEY CAN MAKE
INFORMED DECISIONS. RIGHT MY JOB
EASIER I'D HAVE TO DO IT DO IT
RIGHT AND EXECUTE ON IT YOUR JOB
IS TO FIGURE OUT HOW TO DO IT. A
LOT HARDER- SO WE'RE HERE TODAY
TO SAY WE ARE COMMITTED TO
CONTINUE OUR MISSION WE'RE
COMMITTED TO WORKING WITH THE
LEGISLATORS TO STAKEHOLDERS TO
THE CALIFORNIA DEPARTMENT OF
INSURANCE. AND TO MOVE THESE
ISSUES FORWARD AND FIND
SOLUTIONS. WHERE FOR MEETINGS
AND WE'RE HAPPY TO ANSWER ANY
QUESTIONS. THANK YOU VERY MUCH
OMINOUS YOU JUST STAY THERE FOR
A FOR A CUTTER SECONDS BEFORE WE
MOVE OVER TO MEMBER QUESTIONS- I
WANT TO ENCOURAGE MEMBERS OF THE
PUBLIC THE WANTING TO MAKE
COMMENTS TO IT PLEASE. DIAL NOW
THE NUMBER THAT YOU CAN DIAL IS
EIGHT SEVEN SEVEN. TWO TWO SIX
EIGHTY ONE SIXTY THREE WHEN
PROMPTED PLEASE USE THE ACCESS
CODE FOUR THREE NINE. EIGHT
THREE ONE EIGHT AND YOU WILL BE
ALLOWED TO COMMENT AT THE END OF
THIS. AT THIS- PRESENTATION BUT
BEFORE WE GO TO THE MEMBERS OF
THE PUBLIC WE'RE GOING TO ALSO
INVITE THOSE MEMBERS HERE IN THE
AUDIENCE TO. TO SPEAK BUT I WILL
TURN IT OVER TO MEMBERS OF. THIS
COMMITTEE ANY QUESTIONS. SENATOR
DOT. YEAH THIS IS- OBVIOUSLY A
LOT- ROOM. MEAN YOU THINK ABOUT
ALL THE ISSUES WE HAVE WITH GAS
PRICES SAID. AND THE LACK OF THE
HEARINGS WE HAVE THEIR- I THINK
THIS IS WAY MORE COMPLICATED-
THE- THAT IT DID ANY OF THAT IN
YET. FAR LESS TIME IS BEING PAID
TO THIS VERY INCREDIBLY
IMPORTANT ISSUE. AND THE DOLLARS
AT STAKE HERE. ARE WAY MORE- FOR
PO FOR PEOPLE EXPONENTIALLY NOT
A DOLLAR OR TWO DOLLARS A GALLON
OR WHATEVER THREE WHATEVER IT IS
THESE ARE HUNDREDS OF THOUSANDS
OF DOLLARS- IN YOU KNOW IN SOME
CASES WE HEARD FROM THE
TESTIMONY. YES THE I MEAN IT'S
WITH A FAIR PLAN BECAUSE THEY'RE
STILL SITTING THERE- YOU TALKED
ABOUT THE STATUTE IN THE STATUTE
DOESN'T. OR AT LEAST THE WAY IT
READS DOES ALLOW YOU. IT **** TO
COMPETE WITH THE BETTER MARKET
CORRECT CORRECT SHOULD WE CHANGE
THE STATUTE. ED WOULD YOU AND I
MAY BE ASKING- MISTER. PETER
EITHER MISTER PETERSON- MISTER
MARTINEZ YEAH WHAT WHAT THE WITH
WHAT THEY THINK ABOUT THIS BUT-
YOU AT THE END OF THE DAY IS
THAT SOMETHING THAT WOULD. MAKE
THE INSURERS- WANT TO COME BACK
TO THE MARKET IN LIGHT OF ALL
THE OTHER THINGS THAT ARE GOING
ON. PARDEE HOMES FIREWISE
PROGRAMS REDUCING FUELS AND ALL
THE SIX. IT'S NOT JUST ONE
ISSUE. BUT SAYS AT THIS THAT'S
QUESTION NUMBER ONE QUESTION
NUMBER TWO. WITH THE SUCCESS OF
WHAT IMPACTS ON THE MARKET- AND
ASK THE OTHERS TO WHAT IMPACTS
THE MARKETS DO THESE
ASSESSMENTS. HE- REALLY AB WAR
HERO IT TOGETHER AT THE END OF
THE DAY IF YOU HAD THE
ASSESSMENTS EIGHT WE CHANGES SO
IN ESSENCE YOU'RE COMPETING
AGAINST. THE MARKET THAT'S NOT
WILLING TO COME INTO. THE MARKET
AND SERVE THE MARKET- YOU KNOW
DOUBT WHAT DOES THAT MEAN. IF
YOUR OPINION. SENATE DOT IT WAS
SENT OUT I CAN ANSWER THE FIRST
QUESTION. I THINK ON SEVENTY
FIFTY FOUR AT LEAST THE FIRM HAS
RESPECTED IS A CLEAR STATUTE
RIGHT YOU HAVE TO HAVE THAT
CHOICE ON RATES. AND ANOTHER
PART OF IT THAT CODE I DON'T
HAVE THIS IS THE EXCITATION BUT
IT THEY ARE AUTHORIZED TO GET
REINSURANCE. UNLIKE THE PRIVATE
MARKET. OUT OF THE QUESTION AT
HAND IS CAN THEY INCLUDE THE NET
COST OF REINSURANCE AS PART OF
THEIR FILING. THAT'S WHERE THE
CONFUSION OR MAYBE A DIFFERENT
INTERPRETATION APPLIES- BOTH
TIMES MY CLIENTS CONCERNED THEY
ARE SUPPOSED TO BE INCLUDING
THAT BUT I CAN'T. ONCE BEFORE
THE OTHER STAKEHOLDERS BUT
THAT'S- AS FAR AS ALLEGE THE
CONCERT. I'LL YEAH AND ANY
ANSWER YOUR OF QUESTION I. FEEL
SHOULD BE COMPETING WITH THE
STANDARD MARKET I DON'T BELIEVE
WE SHOULD. RIGHT OUR ROLE IS
REALLY TO BE THERE WHEN THE
OTHER MARKETS CAN'T BE THERE. SO
I DON'T YOU KNOW WHEN YOU LOOK
AT A PLACE LIKE LICK ERRO HEAD
AND WE'RE TALKING ABOUT THE
ALMOST EIGHT BILLION DOLLARS
EXPOSURE. WE INSURE ABOUT HALF
OF THE REST THERE THE OTHER HALF
FOR IN THE VOLUNTARY MARKET OR
THE SURPLUS LINES MARKET
SOMEWHERE OR THEIR SELF INSURED.
SO WE ONLY INSURE ABOUT HALF THE
DIFFERENCES WE HAVE A FULL HALF
EVERYBODY ELSE GETS TO PICK AND
CHOOSE RIGHT AND THAT'S THE WAY
WE'RE SET UP AND THAT'S THE WAY
WE SHOULD BE SET UP WE SHOULD BE
CONCERNED ABOUT. WELL YOU KNOW
WE HAVE ENOUGH EXPOSURE HERE SO
WE'RE NOT GOING TO WRITE ANYMORE
WE NEED TO BE THERE FOR THE
PEOPLE WHO CAN'T FIND INSURANCE.
I BELIEVE I AGREE WITH YOU WE
NEED TO LOOK TO INCENTIVIZE THE
OTHER. MARKETS TO WRITE MORE IN
THOSE AREAS SO IT'S NOT ALL ON
THE FAIR PLAN. I THINK OUR
CONCERN IS. THAT IT REALLY IS.
THE VOLUNTARY MARKET BECAUSE
THEY'RE GOING TO HAVE TO PICK UP
SOME OF THOSE COSTS BECAUSE
WE'RE NOT IN A FINANCIAL
POSITION. TO HAVE ADEQUATE
RATES. TO COVER COSTS IF THE
WILDFIRE GOES THROUGH AN AREA
LIKE THAT. IN IN THAT RESPECT
THAT MY PER. YOUR PERSPECTIVE
HERE BUT AT THE SAME TIME- YOU
KNOW YOU'RE MODELING THIS
CATASTROPHE BASED ON PARADISES
WHAT. YOUR WORDS WERE. AND WE
ARE DOING MORE IN THE AREA HOME
HARDENING WE'RE DOING. MORE AND
MORE IN THE AREA OF A FIRE
BREAKS AND- REDUCING FUELS.
THAT'S GOT A FACTORY AND ALL
THAT SEVEN BILLION I MEAN. LOOK
IT'S NOT GONNA BE A PRETTY
PICTURE. WHETHER IT'S SEVEN
BILLION. COURTS THREE BILLION
IT'S STILL- YOU KNOW
CATASTROPHIC BUT- MAYBE NOT AS
CATASTROPHIC ON- HE- THE OTHER
INSURANCE COMPANIES. I'M JUST
SAYING. I THINK THAT'S ABOUT TO
FACTOR INTO. THE MANAGER IF IT'S
OKAY- I'D I'D LIKE TO HEAR WHAT
THE- THE INSURANCE
COMMISSIONER'S OFFICE THINKS
ABOUT THAT. WHILE YOU'RE A
MISTER MORT. IS FORTY THIS. I'D
ALSO LIKE TO HEAR ABOUT- READ.
IN AND USE CAT. MODELS THE WAY
IT'S BEEN PRESENTED TO US TODAY
IT SOUNDS. FRANKLY LIKE COMMON
SENSE ARE WE MISSING SO. THANK
YOU CENTER DODD MICHAEL MARKS
THANK YOU. THE YOU AYE AYE MIKE
MARTINEZ BEHALF THE TO OF
INSURANCE COMMISSIONER LADA AND
THINK YOU THAT- MULTIPRONGED- I
WILL- I'D RECOLLECT AND MANY. OF
FIRST OVER THE JUST THE
COMPETITION WITH THE ADMITTED
MARKET I DO CONCUR WITH- THE
REPRESENTATIVES OF THE FAIR PLAN
HE- THE FAIR PLAN IS BEST FOR
AND HOW'S THE INSURER OF LAST
RESORT IT HAS BEEN THAT IT WAS
ESTABLISHED AS SUCH- STATUTORILY
SPEAKING SEVERAL DECADES AGO.
AND IT IS THEREFORE. RIGHT IN
THOSE PLACE IN THOSE HOLDERS FOR
WHEN AND WHERE THE PRIVATE
ADMITTED MARKET IS NOT ABLE TO
AT THAT TIME. AND SO I AS A AS
AN EXTENSION OF THAT- IN
PARTNERSHIP WITH THE LEGISLATURE
WE HAVE BEEN ABLE TO WE CREATED
THE HOMEOWNERS CLEARING HOUSE WE
HAVE A BILL- THIS YEAR FOR THE
CRISTINA COMMERCIAL CLEARING
HOUSE TWO PEOPLE TO HAVE- THE
SORT OF FAST TRACK OF THOSE
POLICIES WITHIN THE FAIR PLAN TO
GO BACK INTO THE ADMITTED MARKET
TO FURTHER UNDERSCORE. HOW
IMPORTANT IS THAT THE FAIR PLAN.
AND THOSE INDIVIDUALS BUSINESSES
AND HOMEOWNERS THAT ARE ON THE
FAIR PLAN GO BACK INTO THE
ADMITTED MARKET WHICH IS WHAT
EVERYONE IT BELIEVE. FEEL THAT
CONSUMERS ARE BEST SERVED IN THE
ADMITTED MARKET IN REGARD TO-
AND IT ACTUALLY NAY ALSO WANTED
TO ADD TO THAT THE HISTORY OF
THE FAIR PLAN DOES REFLECT.
ABILITY TO ADAPT AND MODERNIZE
WE'VE SEEN IT THAT IT HAS GROWN
BECAUSE OF THE NEED WHETHER
THROUGH LEGISLATURE LEGISLATION
THROUGH- THE COMMISSIONERS AND
DEPARTMENTS- ORDER OR OR JOINT
STIPULATION THAT THE FAIR PLAN
HAS GROWN WHERE THERE HAS BEEN
TEMPORARY NEED. WHERE THE
ADMITTED MARKET- HAS BEEN- WHERE
THERE'S BEEN A BIT OF A
CHALLENGE TO COVER LIKE FOR
EXAMPLE THE INCREASE OF THE- THE
PRIVATE PERSONAL DWELLING
COVERAGE LIMITS. THE INCREASE OF
THE CREAMER THE COMMERCIAL
LIMITS THE INCREASE ACTUALLY TO
GO INTO THE COMMERCIAL MARKET
AND THEN WE SEEN EXPANSION
THROUGH CHAIR RUBIO SENATE BILL
ELEVEN. I'M GOING INTO PAKISTAN
SO THERE HAS BEEN. NEED FOR WHEN
NEEDED. TO EXPAND OUT THERE- AND
MODERNIZE THE FAIR. AND WE TO
THE THEN THE REGION. COSTS THAT
HAS A WE HAVE TALKED AS AS THE
AS THE BECAUSE SEVERAL OF US
HAVE MAY RECOLLECT ARE QUITE A
FEW YEARS ABOUT THE REINSURANCE
ISSUE. AND REINSURANCE AS THE
REINSURER AS THE INSURERS
INSURANCE COMPANIES SOME
INDIVIDUALS- THINK OF THE
REINSURANCE MARKET IS A VERY
GLOBAL DYNAMIC- MARKET PLACE
AND- UNDER PROPOSITION ONE OF
THREE. IT IS IT IS IMPORTANT
THAT THAT WHEN RATE COMES TO THE
DEPARTMENT FOR PRIOR APPROVAL
THAT WE ARE ABLE TO AS THE
DEPARTMENT IS THE REGULATORY-
WITH ACTUARIAL AND- ANALYTICAL
EXPERTS ARE ABLE TO SEE WHERE.
AND WHAT THE FACTORS THAT GET TO
THAT RATE HOW WILL YOU MEASURES
OUT AND THEY WERE ABLE TO
ACTUALLY DETERMINE AND A VERY.
TRANSPARENT AND OPEN WAY A WHERE
ALL THOSE COSTS COME FROM AND SO
REINSURANCE. LARGELY WERE YOU WE
HAVE A CONSENT CONSISTENTLY SAID
THAT THAT SYSTEM IS BEYOND THE
CALIFORNIA INSURANCE REGULATION
BECAUSE WE CANNOT REGULATE WE DO
NOT REGULATE WE CANNOT REGULATE
REINSURANCE BECAUSE IT IS.
BECAUSE IT IS SUCH- IT IS BEYOND
THE CALIFORNIA BORDER SINCE SO
THAT'S SOMETHING THAT HAS BEEN A
BIT OF A CHALLENGE AND WHAT-
CHRISTENSEN INTIMATION OF
REINSURANCE COSTS THAT IT WILL
HAVE. AN IMPACT ON. ULTIMATELY
RATES IN PREMIUMS THAT ARE
CHARGED TO CONSUMERS. SO THAT'S
ANOTHER CONSIDERATION THAT WE DO
NEED TO BE YOUR EYES WIDE OPEN.
ANOTHER ELEMENT THAT WE NEED TO
INSURE IS UNDER PROPOSITION ONE
OF THREE THAT ALL RATES ARE
TRANSPARENT WE WANT TO ENSURE
THAT THAT IS INDEED THE CASE
THAT WE KNOW THAT ALL. COSTS
THAT WERE AGAIN ABLE TO IN A
TRANSPARENT WAY BE ABLE TO
PINPOINT WHERE EXACTLY THOSE
COSTS- CAME FROM. IT THIS WAY TO
IS THAT OVER THE PAST FEW YEARS.
I HAVE POSED THIS QUESTION TO.
THE INSURANCE INDUSTRY TO BE
ABLE TO ANSWER FOR US AND TO
DATE- IT IS SOMETHING THAT I
FEEL THAT- WE ARE STILL WAITING
FOR AN ANSWER. WHICH IS THIS IS.
FOR REINSURANCE COSTS YOU HAVE A
CALIFORNIA HOMEOWNER. THAT AS
I'VE SAID. BEFORE THAT BUT A LOT
OF TIMES REINSURANCE COULD BE
COUPLE TOGETHER MULTIPLE LINES
MULTIPLE STATES ALL IN ONE LUMP
SUM. HOW CAN CAN A AN INSURANCE
COMPANY BE ABLE TO PARSE OUT THE
CALIFORNIA HOMEOWNERS
REINSURANCE COSTS SO THAT
THEY'RE NOT PAYING FOR A
FLORIDIAN HOMEOWNERS REINSURANCE
COSTS OR LOUISIANA AND-
REINSURANCE COSTS. AND THAT TO
DATE I HAVE NOT HEARD A IN AN
ANSWER FOR THAT I KNOW IT WILL
BE DIFFERENT FOR FAIR PLAN BUT
I'M JUST SINCE WE'RE TALKING ALL
ABOUT REINSURANCE- BECAUSE MY
UNDERSTANDS IT FAIR PLAN ONLY.
COVERS CALIFORNIA RISK BUT FOR
THE OVERALL LARGER REINSURANCE
DISCUSSION POLICY DISCUSSION
WE'VE BEEN HAVING. PETS IN A
VERY LAYPERSONS. QUESTION TERM
BECAUSE AND EVERYTHING THAT I
STATED- DOVE TAILS INTO THAT
ABOUT TRANSPARENCY AND FAIRNESS
AND AN ADEQUACY AND- AND SO
THAT'S THE REINSURANCE AND THEN
CAT MODELING. CAT MODELING- THAT
CAT MODELS ARE- IT'S VERY
IMPORTANT UNDER PROP ONE
PROPOSITION ONE OF THREE THE
DECADES LONG. PROPOSITIONS IN
WHICH THE DEPARTMENT OF
INSURANCE POINTS TO FOR A LOT OF
OUR OUR STATUTORY AUTHORITY IS
THAT WE WANT TO ENSURE THAT
THESE MODELS ARE TRANSPARENT.
THAT THEY ARE SOMETHING WHERE
WE'RE ABLE TO POINT TO AND BE
ABLE TO UNDERSTAND. AND THAT. IS
SOMETHING THAT WE ARE VERY MUCH
OPEN TO. CONTINUING THAT
CONVERSATION AROUND COUNT MODELS
AND PROVIDING TOOLS TO THE
INSURANCE INDUSTRY TO UTILIZE
THE CAN SUCH AS CAT MODELING BUT
WHAT'S IMPORTANT IS THAT AS WE
GO AND CONTINUE DOWN THAT ROAD.
THAT WOULD ALSO NEED TO BE HAND
IN HAND TO ENSURE THAT THERE IS
A CLEAR. MANDATE TO ENSURE THAT.
INSURANCE COMPANIES ARE ACTUALLY
WRITING IN AREAS THAT ARE IN
NEED OF INSURANCE COVERAGE IN
OTHER WORDS IF WE PROVIDE
FURTHER TOOLS SUCH AS CAT
MODELING. THAT WE ARE THAT WE
ARE ABLE TO GET A FIRM MANDATORY
COMMITMENT FROM THE VOLUNTARY
INSURANCE MARKET THAT THEY'RE
THERE. WHERE THERE IS NEED AND
TO PROVIDE AND MAINTAIN
HOMEOWNERS AND COMMERCIAL
INSURANCE AND SO THAT'S VERY
IMPORTANT THAT AGAIN THAT WE'RE
OPEN PROVIDING- AND LOOKING OUT
MORE TOOLS SUCH AS CAT MODELING
BUT AGAIN WE NEED TO ENSURE.
THAT WITH ADDITIONAL TOOLS SUCH
AS THAT THAT THERE IS ALSO A AN
IMPORTANT- MANDATE THERE WERE
INSURERS ARE ALSO GOING TO BE
ABLE TO WRITE IN THOSE AREAS
THAT ARE IN NEED. FOR THAT
HOPEFULLY THE ANSWERED ALL IT
DID IS. THAT ISSUE THAT YOU
BROUGHT UP DID YOU HAD THAT
DISCUSSION WITH THE INDUSTRY ON-
IS SOMETHING YOU BROUGHT UP TO
MY OFFICE- MORE THAN ONCE IN THE
LAST COUPLE YEARS SO. YOU'RE AT
LEAST CONSISTENT SO THANK YOU
VERY MUCH I APPRECIATE YOU
CENTER TRIES TO- SO EITHER FOR
MISTER SEGMENT OR- MISTER TAYLOR
. I'VE I'VE BEEN INTERESTED IN-
YOU KNOW THIS ISSUE BECAUSE IT'S
YOU KNOW IF WE PUT THIS BURDEN
ON THE FAIR PLAN AT SOME POINT
IN TIME- YOU KNOW THIS ISSUE
ABOUT ASSESSMENT COMING BACK- TO
THE COMPANIES NOW THOSE
COMPANIES- YOU KNOW. MAY REACT
TO THAT. OKAY THANK YOU SENATOR
SEVEN TAYLOR FOR THE PERSONAL
INJURY FEDERATION. WITH REGARD
TO THE ASSESSMENT I MEAN I GET
YOUR INTENTION I THINK IT'S A
FAIR QUESTION- BUT REALLY I
THINK THE THING TO UNDERSTAND
HERE IS WHAT. WE'RE TALKING
ABOUT HAVING THE FAIR PLAN-
EXPANDED BE IN COMPETITION WITH
THE ADMITTED MARKET. USING THE
ADMITTED MARKET THAT AN
ASSESSMENT ON THE ADMITTED
MARKET AS A FREE FORM OF
REINSURANCE FOR THEM. AT THE
SAME TIME. WE'RE BEING TOLD
UNDER CALIFORNIA RULES THAT WE
CAN'T EVEN GET THE COST FOR OUR
REINSURANCE INCLUDED IN OUR
RATES. SO YOU COULD SEE THE
PERVERSE SORT OF WAY THAT WOULD
WORK OUT. YOU KNOW YOUR
COMPETITORS NOW USING YOUR
CAPITAL TO KEEP THEIR RATES LOW
WELL YOUR RATES GO UP BUT YOU
CAN'T EVEN COVER THE COST OF
YOUR RATES. SO I WOULD BE I
THINK ART CLASS TO BE VERY
CONCERNED ABOUT A SYSTEM LIKE
THAT COULD YOU COULD SEE HOW
THAT COULD JUST SPIRAL INTO.
MORE ADMITTED INSURERS HAVING
THE IT WOULD HAVE THE OPPOSITE
IMPACT MORE ADMITTED INSURERS.
KNOWING THAT THEIR ASSESSMENT IS
ACTUALLY BASED ON MARKET SHARE.
HE WOULD JUST GET A DEEP MY
SHARE BECAUSE MORE MARKET SHARE
I HAVE THE MORE MY ASSESSMENTS
GOING TO BE. AND THE MORE
BUSINESS THEY TAKE ON THE MORE
MY ASSESSMENTS GOING TO BE SO I
THINK IT WOULD. IT WOULD. REALLY
HAVE THE OPPOSITE EFFECT OF THE
INTENT I THINK YOU'RE SEEKING ON
THAT. WITH RESPECT AND- INSTEAD
OF ANSWERING THAT IT I'M SURE
YOU CAN KERR WITH THAT YEAH
THAT'S STABILIZE. IT DRESSED
PROPERLY THREE YOU SPEND A LOT
OF TIME UP PROPERLY THREE AND- A
IN THE IN THE IMPACTS OF THAT
AND- RATE INCREASES. IN YOUR IN
YOUR TESTIMONY. DO YOU SEE. IT
IS IN THE REALM OF POLITICAL
POSSIBILITY. TO RUN A SURGICAL.
BALLOT INITIATIVE WHICH IS WHAT
YOU WOULD NEED TO HAVE. FOR
WILDFIRE. ONLY RATES IN SYSTEM
STABILITY WORKING WITH THE
LEGISLATURE WORKING WITH THE
INSURANCE COMMISSIONER OR- IS IT
IS THE INDUSTRY JUST THINK
THAT'S A BRIDGE TOO FAR. THROUGH
THE INDUSTRY I MEAN WE ALWAYS
TALK ABOUT DONE THE DISHES AND
STUFF BUT IT'S YOU KNOW THEY'RE
VERY EXPENSIVE PROPOSITIONS ONE
OF THE CHALLENGES OF PROP ONE OF
THREE. IS NOT ONLY HIS HOW CAN
BE TRADED IS A STATUTORY
INITIATIVE BUT IT REQUIRES A-
TWO THIRDS VOTE OF THE
LEGISLATURE IT ALSO REQUIRES
THAT IT BE AND FURTHER INTO OF
SO WHAT HAS HAPPENED. I THINK
THE LAST TIME WE PASSED A BILL
TO CHANGE PROP ONE OF THREE. WAS
ONE DON PRODUCT WAS PRESIDENT
PRO TEM OF THE SENATE SO IT'S
BEEN AWHILE. TWO THIRDS OF
LEGISLATORS NOT A PROBLEM WITH
THIS LISTING WITH PERSISTENT
THESE OTHER PEOPLE COULD.
WACHTER PEOPLE TO TAKE THEIR
DISCOUNTS INSURANCE COMPANIES.
BUT THE GROUP THAT FUNDED PROP
ONE OF THREE EMERALD PROPERLY IN
PLACE INTERVENOR PROFICIENT AT
PROBLEM- THREE CHALLENGE IN THE
COURTS TO IT WASN'T FURTHER
ITSELF SO. THAT WOULD BE A
TOUGH. BALLOT ALSO AS A ON THE
INTERNET FOR THE REINSURANCE
QUESTION. BECAUSE WE DID HAVE
THIS CONVERSATION DURABLE COUPLE
YEARS AGO. THERE ARE WAYS IN MY
MEMBER COMPANIES THAT THEY COULD
ACTUALLY BREAK OUT CALIFORNIA
RISK. WE ALSO HAVE TO REMEMBER
THERE ARE A LOT OF COMPANIES IN
CALIFORNIA THE ONLY RIGHT IN
CALIFORNIA. BUT A PCA AND
PADDOCK REPRESENT A LOT OF
DOMESTIC INSURERS SO. THEIR
REINSURANCE IS ONLY CALIFORNIA.
THEY YOU. THANK YOU MADAM CHAIR
AND CAN DOT. AT ANY OTHER
MEMBERS HAVE QUESTIONS ABOUT.
THE THANK YOU- MADAM CHAIR. I'M
SORRY I'VE BEEN BY FROM AND TO
Q. HOW I MIGHT HAVE MISSED OF
THE COMMON ARE READY TO READY.
MADE BUT I GUESS WHAT. FOR THE-
I KNOW THAT WE- THE WORD THIS.
ARE READY IN REGARDS TO. THE
PROPOSITION HOW LONG DOES IT
TAKE FOR THE DEPARTMENT TO
APPROVE OR NOT. NOT APPROVE A
RATE INCREASE IN MEAT IS THERE
AN AVERAGE TIME FRAME. THAT YOU
KNOW THE DEPARTMENT OF INSURANCE
DOES IT DOESN'T APPROVE THESE
NOTICES AND HOW LONG IT TAKES.
MICHAEL YOU WANTED THAT ONE.
THANK YOU. FIRST YEAR WHEN THANK
YOU MIKE MARTINEZ OF INSURANCE I
APPRECIATE THE QUESTION I DON'T
HAVE. ACTUAL THE DATA BECAUSE
AND WE WILL FOLLOW WE CAN FOLLOW
UP ON THE DATA BECAUSE- I ALSO-
WANT TO MAKE ENSURE THAT WE HAVE
THE MOST UPDATED DATA ON THIS.
THE CRUX IF I. CAN ON ON THE
INTENT IS BECAUSE WE'VE HEARD A
LOT TODAY AND UP TO TODAY IS
THREE FILINGS THAT RATES
DEFICIENCY. AS AS OTHERS HAVE
STATED AND THAT IS SOMETHING
THAT ESPECIALLY IN THE LAST FEW
YEARS WE'VE BEEN WORKING VERY
CLOSELY I BELIEVE WITH. WITH
INDUSTRY ON HOMEOWNERS AND
COMMERCIAL FILENE'S AND THAT IS
SOMETHING THAT- AND I HOPEFULLY
OTHERS CONTESTING THE STRING
THAT I PERSONALLY. HAVE BEEN
WORKING VERY CLOSELY WITH TRADE
ASSOCIATIONS TO IF IT TO FLAG
THOSE PARTICULAR FILINGS THAT
CAN HELP BE ABLE TO MOVE THE
BALL FORWARD AND ENSURE THAT
THEY CAN CONTINUE TO WRITE. IN
SOME OF THESE MORE CHALLENGED
AREAS IN WHICH THERE IS A NEED
FOR- FOR MORE HOMEOWNERS AND
COMMERCIAL INSURANCE AND SO WE I
KNOW. AT TIMES THAT- THAT- YOU.
A RESPECTIVE OF THE
COMMISSIONER. THERE ALWAYS BE I
BELIEVE A DESIRE FOR THE
DEPARTMENT'S MOVE FASTER. AND
JUST KNOW THAT WE HAVE BEEN ABLE
TO WE'VE WORKED. VERY CLOSELY WE
CONTINUE TO STAFF UP I THINK FOR
EVERY ANY EMPLOYER IT'S BEEN A
BIT CHALLENGING RIGHT FOR DURING
THIS TIME TO MAKE OF ENSURING
THAT WE- ARE ABLE TO HAVE. AS
MANY STAFF AS POSSIBLE SO WE
CONTINUE TO STOP AND HIGHER UP
SECONDLY WE HEARD SOMETHING OF A
IN THIS HEARING OF- OF AN
INSURER'S GOING TO BEAR YOU.
MANY OF SIX POINT 9% WHICH IS
SIX POINT 9% IS ESSENTIALLY.
RATE INCREASE IS ESSENTIALLY
GETS RIGHT BELOW WHERE THERE'S A
MAN IN A POTENTIAL FOR MANDATORY
HEARING WHICH COULD ELONGATE THE
TIMELINE AND PERIOD OF REVIEW.
AND SO WE'VE WE'VE HAD THIS OP
WE'VE HAD THIS OPPORTUNITY IN
DIALOGUE WITH INDUSTRY IS. THAT
THERE IS A NEED FOR A HIGHER
RATE IN LARGELY. THE INDUSTRY
HAS STATED THAT THERE IS THERE
IS DEFINITELY. A DESIRE FOR MORE
THAN A SIX POINT NINE WE'VE SAID
IN THE COMMISSIONER'S VERY BEEN
HAS BEEN VERY CLEAR FROM DAY
ONE. OF BEING IN COMMISSIONER OF
THEN FILE FOR WHAT YOU NEED. AND
THAT IS SOMETHING THAT WE'VE
BEEN ABLE TO AND CONTINUE TO
WORK ON WITH WITH THE INDUSTRY
IS IF IT'S NORTH OF NORTH OF THE
SIX NINE. AND WE'VE HAD QUITE A
BIT NOW UNDER THIS
ADMINISTRATION OF A LOT OF
MINISTRATION OF GETTING. DOUBLE
DIGIT INCREASES THE FED
ACTUARIAL AND ANALYTICAL OF THE
DATA IS THERE THEN WE MOVE
FORWARD AND WE'RE WE WORK TO GET
IT ACROSS THE FINISH LINE. IN
PARTNERSHIP WITH THE INDIVIDUAL
FILER- I WOULD ALSO SAY THAT IN
IN IN PARTNERSHIP WITH THE FAIR
PLAN WE HAVE ALSO BEEN WORKING
WITH THEM. ON ON A COUPLE THEIR
FILINGS BECAUSE ALSO TO US. BACK
ON SOME OF THE COMMENTS OF THE-
QUESTIONS THAT. I DELETE WE DO
WANT TO GET THE FAIR PLAN-
FILINGS ACROSS. THE LAW OF THE
FINISH LINE AS WELL BECAUSE WE
ARE THEN. ABLE TO- GET GET THE
RATE THAT THEY NEED. IN ORDER TO
THEN HAVE MORE DISTANCE AND THEN
TOWARDS ADEQUATE RATE. AND MORE
DISTANCE BETWEEN THAT ASSESSMENT
THAT THAT- THAT THAT WE ALL.
FEEL IS NOT OPTIMAL. AND SO.
YEAH ON THE DATA- OF- AND THERE
ARE I WOULD SAY THAT AS A AS
ANOTHER. IS THAT. THERE ARE.
DEFINITELY TIMES WHERE IT COULD
BE THE DEPARTMENT. AND THAT'S
RIGHT CAN COME AND WHERE I HAVE
OTHER COLLEAGUES THAT ARE ABLE
TO LEAN ON AND BE ABLE TO WORK
IN TRIAGE FILINGS RESULT SWAP.
TIME WHEN THE INSURER THE
INSURANCE COMPANY CAN PROVIDE
MORE INFORMATION MORE- ABILITY
TO HELP MOVE THEIR FILING
FORWARD AND SO I DO WANT TO SAY
THAT THERE IS THIS DUALITY. ON
BOTH SIDES THAT TO ITS THE
DEPARTMENT AND THE FIRE WE'RE
WORKING TOGETHER TO GET AS MUCH
INFORMATION OBJECTIVELY AS
POSSIBLE IN ORDER TO MOVE THE
BALL FORWARD ON THE FILING. WHAT
ABOUT. REINSURE FOR ENSURE THAT
ONLY WRITING CALIFORNIA. HOW
LONG DOES THOSE USUALLY TAKES.
PRESENTLY RIGHT NOW WE DO NOT
HAVE THE DEPARTMENT INSURANCES
LONGSTANDING POLICY THAT WE HAVE
WE DO NOT ALLOW. REINSURANCE
COSTS TO BE INCLUDED IN THEIR
FILING SO THERE IS NOT A- A
TIMELINE THAT I CAN PROVIDE YOU
BECAUSE IT ESSENTIALLY THERE ARE
NO FILINGS THAT ARE ALLOWED- IN
THAT REGARD BUT- IN HIS THAT IT.
DEPARTMENT POLICY OR IS THAT A
STATUTE. IT'S JUST IT'S BEEN A
LONG STERN YOU DEPARTMENT. I
GUESS SHAPE POLICY- IN PART OF
OUR LONGSTANDING INTERPRETATION
OF PROPOSITION ONE OF THREE IN
EXISTING LAW. AND SO- ONE IN A
PREVIOUS. DIALOGUE WITH THE WITH
THE PREVIOUS- WITH WITH SENATOR
DODD'S QUESTION ON THIS ISSUE.
OF REINSURANCE IS THAT. THE
REINSURANCE FROM CALIFORNIA'S
PERSPECTIVE IS A VERY GLOBAL.
THE MARKET AND THAT IT IS AT
TIMES HARD TO PARSE OUT
INDIVIDUAL COSTS THAT GO BEYOND
AND EXTEND BEYOND THE CALIFORNIA
BORDER NOW TO YOUR POINT- VOICED
HER WHEN. IS THAT- FOR THOSE
CALIFORNIA ONLY SPECIFICS THAT'S
SOMETHING THAT WE CAN CONTINUE
TO HAVE THAT DIALOGUE WITH THE
INDUSTRY THAT WE HAVE ON
REINSURANCE AND COUNT MODELING-
THAT AGAIN IS. AS WE CONTINUE
TO. EXPLORE THESE CON CONTINUE
THESE CONVERSATIONS. AND
PROVIDING MORE TOOLS. THERE IT
HAS TO BE VERY IMPORTANT THAT WE
ALSO HAND IN HAND TO ENSURE THAT
THERE IS A FIRM CLEAR.
COMMITMENT BY THE VOLUNTARY
INSURANCE MARKETS TO RIGHT THAT
WE DON'T JUST GIVE YOU AS WE
EXPLORING AND PROVIDE ADDITIONAL
TOOLS THAT THERE NEEDS TO ALSO
BE A COMMITMENT FROM THE
INVOLUNTARY INSURANCE MARKETS
PROVIDE INSURANCE. IN THE
COMMERCIAL ON HOMEOWNERS IF
PROVIDED THESE ADDITIONAL TOOLS
AND THAT'S A VERY IMPORTANT
COMPONENT THAT. THAT IS NEEDED
HERE IN THIS CONVERSATION. THANK
SHASTA THANK YOU THANK YOU
MANAGER. SO TO THE FAIR PLAN-
WHAT I'M HEARING. IS THAT.
YOU'RE THE LAST RESORT. HE
SHOULD JUST BE THE LAST ONE
WHERE PEOPLE GO OKAY I NEED YOU
RIGHT- THEN WHAT IS THE SOLUTION
FOR US TO MAKING AND EXPAND
ALLOWING THAT MARKET TO. DO
BETTER BECAUSE THE BETTER THEY
DO THE LESS WE HAVE TO. BE USING
FOR THE FAIR PLAN AND THE LESS
WE HAVE TO USE THAT TYPE OF I
MEAN THAT'S A HUGE COST AND
LIABILITY US. THE DOOR TO THE
FAIR PLAN SO WHAT WHAT IS THE
SOLUTION OUT THERE. DO WE HAVE I
MEAN I KNOW YEAH YOU MIGHT NOT
HAVE THAT ANSWER BECAUSE YOU DID
SAY THAT WERE THE ONE WHO SHOULD
TELL YOU WHAT TO DO AND THAT YOU
JUST GET TO IMPLEMENT WHAT WE
TELL YOU BUT I THINK WE'RE RIGHT
NOW AT THE POINT. ALL RIGHT.
WE'RE AT THE POINT WHERE. YOU
KNOW I'M GETTING CALLS I MIGHT
NOT BE IN THE HIGH. FIRE
WILDLIFE AREA BUT ANYTHING THAT
HAPPENS NOR THE PART OF US
RIGHT- MAKE SPECIALLY IN ORANGE
COUNTY COMES YOU KNOW IN THE IN
THE OUR- CANYON AREAS WILL COME
DOWN TOWARD THOSE MUD SLIDE
THOSE LIGHTS I MEAN EVERYTHING'S
COME DOWN TOWARD MY AREA MY
DISTRICT. AND SO IT'S LIKE YOU
WE KEEP ON HEARING EITHER H.
AWAY FOR HOMEOWNERS I MEAN YOU
NAME IT THEY'RE NOT ABLE. TO
FIND INSURANCE COMPANY TO BUY.
SO I THINK THEY A COUPLE OF THAT
WE COULD DO LIKE. RIGHT AWAY I
GUESS ONE IS I DO WANT TO
CLARIFY AND- YOU KNOW
INDIFFERENCE TO WHAT EVERYBODY'S
TALKING ABOUT CALIFORNIA FAIR
PLAN IS NOT SUBJECT TO PROP ONE
OF THREE. SO WHEN THEY'RE
TALKING ABOUT THE REGULATIONS
AND HOW THEY APPLY THEM THAT
THEY'RE DIFFERENT FOR THE
CALIFORNIA FAIR PLAN. SO I THINK
ONE OF THE THINGS THAT'S- THAT
WE KEEP TALKING ABOUT IS WE NEED
ACTUARIALLY SOUND RATES. THERE
ARE IN FACT POCKETS IN THE STATE
OF CALIFORNIA. AND WE HAVE WE'VE
GOTTEN EXAMPLES WERE WERE
ACTUALLY LOWER PRICED. THAN THE
VOLUNTARY MARKET IF YOU TAKE OUR
POLICY PLUS A DIFFERENCE IN
CONDITIONS POLICY WHICH THEY
NEED IN ORDER TO GET A FULL
HOMEOWNERS POLICY. WERE
ACTUALLY. CHEAPER THAN IF THEY
GO TO TRY TO PLACE THAT
HOMEOWNERS POLICY. WITH THAT IN
THAT A CARRIER THAT SHE'LL NEVER
BE THE CASE YOU CAN'T BE THE
ANSWER LAST RESORT. IF YOU'RE
CHEAPER YES I AM BECAUSE YOU
DON'T HAVE ANY REGULATIONS ON
YOU RIGHT A DEAL RIGHT EXACTLY
SO. THAT'S ONE OF THE THINGS I
THINK WE COULD LOOK AT. RIGHT
AWAY. BECAUSE AT LEAST A
FORTNIGHT CHEAPER PEOPLE WON'T
BE ENTICED TO COME TO US OR TO
STAY WITH US ONCE OR WITH US WE
HAVE SEEN MORE PEOPLE STAYING
WITH US LONGER THAN WE HAVE EVER
IN THE PAST. BECAUSE YOUR GOAL
IS REALLY TO HELP FOLKS NOW AND
THEN ONCE THE MARKET. IS
AVAILABLE THEY MOVE OUT. THE ALL
RIGHT AS AS A- MISTER MARTIN.
COME YET WE THAT'S WE PASS THE
CLEAR HOUSE. WAS TO GIVE THE
MEMBER COMPANIES ACCESS TO OUR-
BOOK OF BUSINESS SO THEY COULD
TRY TO PULL THAT BUSINESS BACK
INTO THE VOLUNTARY MARKET- IT.
IS DEFINITELY A STEP IN THE
RIGHT DIRECTION. WE NEED TO
FIGURE OUT HOW TO STOP THE
BUSINESS FROM COMING IN ON THE
FRONT. SO I THINK OVERALL THE
WAY I'M I THINK WE- ON THE
COMMITTEE OR THESE I WOULD
APPRECIATE THAT IF. YOU KNOW THE
CITY I COULD WORK WITH THE
INSURANCE INDUSTRY JUST TO FIX
SOME OF THESE REGULATIONS THEN.
SO THAT THE MARKET IS OPEN UP.
AND THAT MORE FOOT MORE
INSURANCE COMPANY WANTS TO DO
BUSINESS IN CALIFORNIA WANTS TO
ACTUALLY. ENSURE OUR RESIDENTS
WHAT IS THE BUSINESS THEIR HOMES
THERE HAVE ASSOCIATION WHATEVER
IT IS- YOU KNOW AND YOU DON'T.
REALLY ALLOW THAT COSTS OF
REINSURANCE. I THINK IT'S PRETTY
REASONABLE- AND SO I THINK. WE I
KNOW THIS IS NOT GOING TO END
TODAY AND THERE'S GONNA BE A LOT
MORE CONVERSATION. IT'S JUST
THAT WE NEED TO FIGURE OUT HOW
TO STABILIZE THIS MARKET OR IS
IT NONE OF US ARE GONNA BE ABLE
TO BUY INSURANCE. IN IN THE
STATE OF CALIFORNIA. ANYMORE AND
SO YOU KNOW LOOKING AT HOW THE
FAIR PLAN IS ABLE TO BE SO MUCH
LOWER WHEN YOU SHOULDN'T BE HA.
AND WHAT IS CAPPING AND FORCING.
THE GENERAL MARKET. SO MUCH.
HIGHER AND GREATER FOR IT WE
NEED TO LOOK AT THAT AND YOU
KNOW I MEAN IT'S PRETTY SIMPLE
TO ME TO JUST SAY HEY.
REGULATION HEAVILY NONE AT ALL.
METAMASK IS THE ME JUST CLARIFY
THERE ARE SOME RULES THAT APPLY.
THE ITEMS. YOU THAT THE STATE.
THE OTHER VIGOROUS ONE. I NOT
TALKING TO YOU DON'T HAVE ANY OF
THESE DON'T. YES YEAH DON'T MISS
AND- ME BUT I'M SAYING THAT I
THINK WE LOOK AT. WHAT'S THE
DIFFERENCE IN HOW WE CAN HELP
STABILIZE THE MARKET AND. I
SHOULD ALLOW PEOPLE TO BUY. INTO
THE- RIGHT AND I THEY WOULD
EITHER I MEAN YOU FROM. SEAMERS
AND THE WHO TALK TODAY ABOUT THE
HIGH. OF INSURANCE SEE WHEN THEY
TO GO TO THE SURPLUS LINES WHICH
ARE NOT REGULATED. AND SO IT BUT
THEY'RE MUCH CLOSER- THEY'RE
LOOKING THEY'RE LOOKING FOR
PROFIT I'M NOT RIGHT SO THERE'S
A LITTLE BIT DIFFERENT BUT
THEY'RE MUCH CLOSER TO WHERE WE
NEED TO BE- IN TERMS OF COST. I
THINK WHAT PEOPLE LOSE SIGHT OF
IS. THE FAIR PLAN IS A HIGH RISK
POOL ACROSS THE STATE. YOU KNOW
IT'S ONLY TWO HUNDRED AND
SEVENTY NINE OR TWO HUNDRED
EIGHTY THOUSAND POLICIES. BUT WE
ARE THE HIGHEST RISK OF THE
HIGHEST RISK IN THE STATE.
BECAUSE OF THAT WE'RE GONNA HAVE
HIGH PRICES. I MEAN THERE'S JUST
NO WAY AROUND IT AND I KNOW THE
DEPARTMENT REALLY TRIES TO
BALANCE THAT RIGHT BECAUSE
NOBODY WANTS. INSURANCE THAT
THEY CAN'T AFFORD EITHER RIGHT
SO THERE'S A BALANCE THERE. BUT
IF WE'RE NOT GETTING THE PRICE
FOR A RISK WERE COMPOUNDING THE
PROBLEM THAT ARE HAPPENING IN
THE INDUSTRY. AND I'M THE FIRST
TO TELL YOU. THE SOLUTIONS HAVE
TO HAPPEN WITH THE VOLUNTARY
MARKET. NOT WITH US BUT WE CAN'T
COMPOUND THAT PROBLEM BY
OFFERING LOWER COST INSURANCE.
OR BEING AT THE READY TO DO AN
ASSESSMENT ANYTIME WE HAVE A
WILD FIRE BECAUSE WE DON'T HAVE
THE FUNDS TO COVER THAT. SO
DEFINITELY BALANCING ACT. THANK
YOU FOR THAT- WELL THANK YOU SO
MUCH FOR ALL THE QUESTIONS.
MISTER DOT HAD A LOT OF
QUESTIONS AND HE COVERED A LOT
ABOUT IT- I JUST WANT TO ADD A
LITTLE BIT TOO THAT I MEAN AS
WE'VE ALREADY HEARD. THIS TOPIC
IS VERY COMPLEX VERY CONVOLUTED
AND DIE YOU KNOW BY WAY OF
EXAMPLE YOU KNOW YOU KEEP SAYING
THAT YOU'RE NOT. SUBJECT TO PROP
ONE ALL THREE BUT YET. IT IS
CONNECTED IN SO MANY WAYS
BECAUSE- WHAT WHAT'S HAPPENING
RIGHT NOW IS THAT WE'RE PUSHING
ALL THESE YOU KNOW CONSUMERS TO
THE FAIR PLAN AND- IT IS NOT
SUSTAINABLE I SAW YOUR LAST
GRAPH RIGHT TALKS ABOUT- THE
EXPOSURE AND IT'S TRUE THAT YOU
HAVE A SMALLER MARKET BUT YET
YOU TAKE ALL THE REST. THAT THE
ADMITTED MARKET ALONE AND SO WE
HAVE TO FIGURE THAT OUT AND I.
HEARD A SEVERAL ISSUES HERE-
THAT HAVE BEEN SORT OF RE
ITERATED AND I WANT TO. TRY
DRESSEL SAYS WELL- SO FIRST OF
ALL AND WE TALKED ABOUT HOW
EXPENSIVE IT IS. CURRENTLY
CORRECT AND LET ME JUST GO BACK
TO THAT GENTLEMAN THAT SET THAT
IN THE TWO THOUSAND IT WAS
THIRTY NINE THOUSAND DOLLARS AND
NOW. THE COST OF INSURANCE IS
FOUR HUNDRED AND SEVENTEEN
THOUSAND. BUT THEN WE HAVE TO
TAKE INTO CONSIDERATION ALL
THESE OTHER ISSUES THAT ARE.
SORT OF COMPOUNDING THE ISSUE SO
FOR EXAMPLE WE TALKED ABOUT
CLIMATE CHANGE. ALL THE ALL THE-
WILDFIRES THAT ARE CURRENTLY
HAPPENING AND JOB THE MOST
DEADLY AS DEVASTATING WILDFIRES
HAVE HAPPENED IN THE LAST- SIX
YEARS. ODD THAT THE MOST STUFF
STRUCTURES. DESTROYED LIVES LOST
AND ON AND ON AND ON SO CLEARLY.
TIMES ARE CHANGING SO
DRAMATICALLY AND SO AND I KNOW
THAT I BELIEVE IT WAS SERIN WHO
KEEPS TALKING ABOUT. THE RULES
AND RULES SO I JUST WANT TO
REITERATE WHAT THOSE RULES ARE
WHERE THEY COME FROM AND- WHAT
HE WAS TALKING ABOUT POP ONE OR
THREE WHICH WAS PASSED IN
NINETEEN EIGHTY EIGHT. SO YOU
KNOW HERE WE ARE WE DEALING WITH
TODAY'S CRISIS. THAT WE DIDN'T
HAVE IN NINETEEN EIGHTY EIGHT
BUT YET WE CAN GO BACK AND FIX
IT SO I KNOW THAT. WHEN IT WAS
PASSED CLEARY IT WAS WELL
INTENDED WE HAVE AND IT DID. I
THINK IT WORKED AS IT WAS
INTENDED AT THE TIME. BUT NOW
WE'RE SEEING ALL THESE OTHER
ISSUES THAT WE DIDN'T HAVE IN.
NINETEEN EIGHTY EIGHT AND SO.
WHEN WE THINK OF CLIMATE CHANGES
NOT A CALM. WE USED TO HAVE BACK
IN THE DAY I THINK WE CAN ALL
AGREE. AND WE'RE SEEING MORE
JUST. BE OF IT I MEAN. I'M FROM
LOS ANGELES COUNTY AND FOR THE
FIRST TIME WE SAW SNOW AND
THAT'S SOMETHING WE HAVEN'T SEEN
BEFORE SO. SO I KNOW THAT THESE
ARE THE TOP ISSUES THAT WE NEED
TO DISCUSS AND I'M JUST YOU KNOW
I WANT TO SAY THAT THIS IS NOT
THE LAST I HEAR WE'RE GOING TO
HAVE. THERE'S SO MUCH TO. TO GO
DEEP INTO SO I KNOW CLIMATE
CHANGE IS AN ISSUE BUT I WANT TO
TAKE THE TIME TO THINK-
COMMISSIONER LOT I SPEND A LOT
OF TIME WITH HIM IN DECEMBER
JUST TALKING ABOUT CLIMATE
CHANGE AND THE ISSUES AND- AND
AGAIN HE'S AGGRESSIVELY TRYING
TO TACKLE THESE. ISSUES IN THE
LINES OF CLIMATE CHANGE- WE ALSO
HEARD. THAT WE HAVE CAPACITY A
CAPACITY CRISIS. THAT'S A REAL
ISSUE THAT WE HAVE TO. CONTEND
WITH- IN REINSURANCE BECAUSE
LIKE I SAID I KNOW THAT. THE FOR
PLAN IS NOT SUBJECT TO PROP ONE
OF THREE BUT WHEN I HEAR. YOU
KNOW THAT EVENTUALLY THE COSTS
THAT YOU INCUR IS GOING TO BE
PASSED ON TO THE- INSURANCE
MARKET- AND THEN WE WONDER WHY
THESE RATES ARE GOING UP BECAUSE
SOMEONE'S GOING TO HAVE TO PAY
FOR IT. BUT I DON'T THINK WE SEE
THE CONNECTION. WE SEE THE
INSURANCE MARKET IN ISOLATION
THAT WE SEE THE FOR PLAN IN
ISOLATION BUT YET. THAT THEY'RE
THEY'RE RELATED IN SO MANY WAYS
BECAUSE- YOU KNOW WHAT HAPPENS
IN THE INSURANCE MARKET. FACTS
AND THE FAIR PLAN AND- AND I
HAVE TO ADMIT IS A LEGISLATOR
THAT ITS- ALLIES THAT ARE ALSO
CAUSING A LOT OF THE STRAIN WITH
SOME OF THE POLICIES THAT WERE
PASSING. I DID SEE THAT WE HAVE
CANNABIS ANOTHER BILL THAT IS
GOING TO BE PUSHED ON TO YOU IN
TERMS OF. COVERAGE AND SO THE
MORE YOU COVER IT JUST KEEPS
PUTTING A LOT MORE. STRESS ON
THE SYSTEM AND SO FOR ME I'M
REALLY FEARFUL THAT IF WE DON'T.
TACKLE THESE ISSUES RIGHT NOW.
THE MARKET WILL BREAK AT SOME
POINT AND WE HAVE TO CONSIDER-
ALL THE STORIES THAT WE HEARD
FROM OUR CONSUMERS. THESE ARE
ISSUES THAT ARE IMPORTANT TO US
WE NEED TO LISTEN TO WHAT
THEY'RE EXPERIENCING. THE
CHALLENGES. BUT AT THE SAME TIME
WE NEED A MARKET THAT
SUSTAINABLE OR ELSE. EVERYONE'S
GOING TO BE IN THE SAME
SITUATION WHERE WE CAN GET
COVERAGE AND- SO. THERE'S SO
MANY LAYERS TO THIS. ALL BUT I
WANT TO ASK A QUESTION RIGHT
NOW. MICHAEL MY- HAVE YOU DON'T
MIND JUST. YOU KNOW BECAUSE YOU.
ABOUT THE SIX POINT NINE SEVERAL
TIMES CAN YOU SHARE BEFORE
PUBLIC- KNOWLEDGE WHERE THE SIX
POINT NINE NUMBER CONTENT. IN
TERMS OF. THE RATE INCREASE YOU
SEEN EVERYONE STAYS BELOW SIX
POINT NINE. IT WAS A LITTLE BIT
OF HISTORY ON THAT PARTICULAR
NUMBER- THANK YOU CHAIR REPEAL
OF MIKE MARTINEZ DEPARTMENT OF
INSURANCE. THE SIX POINT 9%
FIGURE. IT'S ESSENTIALLY IN
UNDER PROPOSITION WILL ACTUALLY
BE A- TWO YEAR. OF THE HISTORY
SO- PROPOSITION ONE AUTHORED
PASSED BY VOTERS IN NINETEEN
EIGHTY EIGHT TO CREATED A PRIOR
APPROVAL STE- RATE REGULATION
SYSTEM AND K. AS WELL AS AN
ELECTED INSURANCE COMMISSIONER
STATEWIDE. AMONG MANY OTHERS BUT
THAT THAT THAT THE BIG TRUCKS
BEING. HI- A PRIOR APPROVAL
SYSTEM SO IN OTHER WORDS WHEN AN
INSURANCE COMPANY WANTS TO- IS
IN CALIFORNIA OR INTEREST
CALIFORNIA AND WANTS TO CHARGE A
CERTAIN. PREMIUM THEN THEY COME
TO THE DEPARTMENT OF INSURANCE
AND FILE A RATE FILING AND- AND
TO BE ABLE TO CHARGE YOU CAN A
CERTAIN A CERTAIN PREMIUM. RATE
WHETHER SHOULD BE A DECREASE OR
INCREASE BUT IF WE'RE TALKING IN
THIS CONTEXT FOR AN INCREASE-
IT'S REALLY. THAT THIS FITS IT-
SEVEN PERCENT. IS GENERALLY
CONSIDERED TO BE IF IT'S NORTH
OF 7% AND AN UP. THAT IT WILL
COULD BE SUBJECT TO. A HEARING.
A PUBLIC HEARING. BY IF SO IF. A
IF AN INTERVENING GROUP. WHAT
WISHES. A HEARING TO ON THAT
RATE FILINGS AND SO- AND THEN
BACK UP TO CASSETTE POSTERS WITH
NEW NEW COMMITTEE- MEET NEW CAN
. MEMBERS IS WE HAVE THE REGULAR
THAT CALIFORNIA INSURANCE FOR
SWITCH OVER SEASON AND REGULATES
EMPIRE PROVES RATE FILINGS WE
ALSO HAVE THE INSURANCE COMPANY
THAT SERVICES THE FILER WOULD
FILE AN INSURANCE- RATING. IN
THIS CASE FOR HOMEOWNERS
INSURANCE FOR CAR INSURANCE FOR
COMMERCIAL INSURANCE ALL OF THE
SUBJECT UNDER PROPOSITION ONE OF
THREE IN PRIOR APPROVAL. AND
THEN WE WOULD HAVE- IF AT TIMES-
THERE'S ABILITY UNDER
PROPOSITION ONE OR ONE OF THREE
FOUR AND INTERVENORS- WHICH IS
AN OUTSIDE- GROUP. THAT THAT
WOULD BE THAT COULD BE ABLE TO
PETITION THE DEPARTMENT TO
INTERVENE IN A FILE IN A FILING
IN A RATE INCREASE FILING AND
GENERAL TALK ABOUT RATE
INCREASES THEIR- TO INTERVENE
PETITIONS TO THE DEPARTMENT TO
INTERVENE. AND SO IF THE
DEPARTMENT GRANTS THAT GROUP THE
BILITY TO INTERVENE IN A FILING
INTO AND THEY ARE PART OF A
PARTY AN INTERESTED PARTY TO BE
ABLE TO REPRESENT AND PROVIDE
THEIR VIEWS ON A PENDING FILING
. THE ISSUE HERE NOW IS FOR THE
SIX POINT NINE- THRESHOLD AS
UNDER PROPOSITION ONE OF THREE
THEN THERE IS UNDER THE SIX
HUNDRED AFTER IF THE FILING AND
GENERALLY WE ARE SPREE HAVE BEEN
SEEN. SIX POINT 9% RATE
INCREASES- THAT. UP TO THIRTY
SIX POINT NINE THAT HIS TIME SO
IT COULD BE THE DEPARTMENT WITH
FOR THE INSURANCE COMPANY. WHO
FILED THE RATE INCREASE AND
INTERVENOR THAT WE WOULD HAVE NO
CONVERSATIONS AROUND THE- THE
SIX POINT NINE UP TO SIX POINT
EIGHT CONNECTED 1% 2% UP TO SIX
POINT 9% RATE INCREASE. TO BE.
AND- IF THERE'S A MEANS OF MY
GRAY IMMERSIVE. IT'S APPROVAL IF
NOT- WE CAN WE WITH TO RESOLVE
IT WORK OUT- AND ANY DIFFERENCE
AND MOVE FORWARD STILL BUT IF
THERE IS THEN THAT. IS THAT THE
- CAN STILL MOVE FORWARD AND
APPROVED THE RATE. FILING- WITH
WITHOUT THERE BEING A CONSENT
FILE BY A PARTIES. IF THE FILING
IS NORTH OF THIS IS CONFLICT
POINT 5% OR 21% RATE INCREASE.
THAN IT DOES IF THAT VIOLENT.
AND NOT FAULT NOT ALL LIKE.
FILENE'S NORTH OF THE LAKE SEVEN
POINT NO AN UP OR OR DOUBLE
DIGIT GET INTERVENES- IT BUT
JUST FOR THOSE FILINGS AND IT
BEING INTERVENED AT A NORTH OF
THE SIX POINT NINE PERCENT. IF
THE INTERVENING GROUP IF THERE
IS AN ENTERTAINER. IF THE
INTERVENING GROUP BELIEVES THAT
THERE THAT THAT THEY WANT TO
HAVE MORE PUBLIC DISCOURSE
AROUND IT AND IT DIDN'T COME
FROM THAT ISLAND. THEN THEY CAN
REQUEST AND BE GRANTED A
MANDATORY PUBLIC HEARING ON THAT
FILE IN AND THEN THAT WILL GO
WITH THE DEPARTMENT INSURANCE
HAS. ADMINISTRATIVE LAW JUDGES
WE DO SERVE AS A SENSORY- OF
MINISTRY OF. OVERSTEER A- A IN A
IN A IN A COURT LIKE SAID WHERE
WE WOULD HAVE ALJ. LAW JUDGE. BE
ABLE TO BE A PART OF THAT. OF
DETERMINING. WHETHER THAN THAT
RATE IS NOT EXCESSIVE NOT
DISCRIMINATORY- AND IT'S AND-
AND A AND A AND THAT SORT OF
PROCEEDING AND SO THAT. AT TIMES
WILL BE A VERY ROBUST
CONVERSATION IT COULD TAKE A
LOOK AT TIMES SOME TIME TO GET
IT ACROSS THE FINISH LINE WE
HAVEN'T HAD THOUGH A HEARING.
IT'S BEEN AN INCREDIBLY LONG- AT
LEAST ON THE HOMEOWNERS SIDE-
WHEN WE'VE HAD- WE'VE HAD. TAKEN
AN INTERVENOR QUESTION TO GO TO
A HEARING MICHAEL YOU HAVE LIKE
OF THAT OUR SECOND SCHOOL- IT
OKAY. I WOULD TRY TO FIND THE
BALANCE RIGHT OVER BUT YEAH WHAT
I YOU PROVIDE US WITH A OKAY A
LOT OF FROM OKAY. IN THE SPOT
BUT THERE WERE YOU I NEED IT YOU
TO KIND OF EXPLAIN THE PROCESS.
YES WE DO HAVE NEW- MEMBERS OF
THE AND WE KNOW THAT WE'RE LIVE
STREAMING AND WE WANT THE
MEMBERS OF THE PUBLIC TO KIND OF
HEAR THIS BECAUSE ONE OF THE
BIGGEST ISSUES THAT I KEEP
HEARING IS- THE RATE FILING AND
HOW LONG IT TAKES AND HOW. YOU
KNOW COMMERCENTRE IT IS AND HERE
WE ARE YOU'RE TRYING TO EXPLAIN
TO ME WHY GETTING PAST SIX POINT
NINE THE PROCESS AND WE ALL JUST
KINDA HERE HAULING THE IN AND
HOW WE HAVE OUTSIDE GROUPS
COMMAND YOU HAVE TO GO TO COURT
AND SO. WHAT I'M HEARING RIGHT
NOW IS LIKE WE'RE STRUGGLING
WITH RATE FILINGS RIGHT AND IT'S
ALREADY TAKING. A LONG TIME AND
THEN IF YOU- I THINK I HEARD YOU
SAY EARLIER THAT THEY KEEP
ASKING FOR SIX POINT NINE IN.
AND SOMETIMES THEY DON'T ASK
FOR. WHAT YOU PERCEIVE TO BE
ADEQUATE. RIGHT RIGHT BUT THEN.
WHEN YOU. EXPLAIN THE PROCESS OF
WHAT THEY HAVE TO GO THROUGH AND
YOU KNOW SO THE WAY I SEE IT IT
JUST TAKES THAT MUCH LONGER TO
GET PEOPLE ABOUT THE COVERAGE
THAT THEY NEED. AGAIN THIS IS MY
OWN PERCEPTION BUT- BUT I JUST
KIND OF WANTED UNDERSTAND A
LITTLE BIT FOR NEW MEMBERS TO
UNDERSTAND THAT THAT IT'S NOT AN
EASY PROCESS IT'S- IT'S LONG-
CAN YOU JUST SHARE ONE. ONE
ANSWER. WHAT'S SO LONG AS A
PROCESS. LIKE THAT HAS TAKEN.
BUT THERE ANY CASE AT YOUR
REMEMBER BECAUSE I HEARD. J. TWO
YEARS THREE I'VE HER LINK THE
PROP. SO CAN YOU YES I. IS A-
AND I WONDERFUL UP WITH WITH
MORE INFO ON ON ON DATA- SO. YES
THERE THERE THERE ARE. A SAY
THAT OUTLIER WITHDRAW OUTLIERS
RECOUNT. MULTIPLE YEARS. AS AND
IT COULD TAKE. TWO TO THREE
YEARS- I DO WANT TO THERE'S AN
ASTERIX THERE BECAUSE I. I'M
SORRY MIKE I MIGHT HAVE TO PAY
OUT BECAUSE RIGHT NOW WE'RE
WE'RE PAST YOU KNOW. WE
APPRECIATE THE INFORMATION YOU
PROVIDE I'M SORRY BUT WILL HAVE
ANOTHER HEARING WHERE WHERE
WE'LL GET DEEPER INTO THE
SUBJECT MATTER BUT THANK YOU FOR
THE INFORMATION TO CHURCH
ALREADY OF ITEMS. THANK YOU- BUT
I'LL JUST YOU KNOW- REITERATE
THAT PART YOU KNOW COULD BE TWO
YEARS THREE YEARS AND WE'RE
TALKING ABOUT PEOPLE HAVING
IMMEDIATE NEED TO GET COVERAGE.
THIS IS. AN ISSUE AND I'M NOT
SAYING IT'S RIGHT OR WRONG IT'S
NOT UP TO ME TO DECIDE THAT BUT
I JUST WANTED TO JUST HIGHLIGHT
THE PROCESS AND- AND AGAIN- WHEN
THIS PAST PROP ONE OF THREE IN
NINETEEN EIGHTY EIGHT. IT WAS
THE RIGHT THING TO DO AT THE
RIGHT TIME BUT WE ARE NOW WE'RE
FINDING ALL THESE OTHER FACTORS
THAT WERE NOT PART OF. THE
DISCUSSION THAT ARE NOW PLAYING
INTO WHY INSURANCE IS GOING
HIGHER Y. P. FOR NOT BEING NON
RENEWED. WHY THE FAIR PLAN NOW
IS HAVING TO BE YOU KNOW AS YOU
PUT IT NOW INSURER. OF FIRST
RESORT AND I WAS MEANT TO JUST
CAPTURE PEOPLE A FEW PEOPLE THAT
WERE GETTING DROPPED OFF AND NOW
YOU'RE TAKING ON THIS. THIS
HIGHER RISK AND- AND LET'S FACE
IT THE PEOPLE THAT ARE BEING NON
RENEWED ARE THE ONES THAT ARE.
IN THE HIGHEST RISK. IN THEIR
FOR NOW YOU HAVE- ALL THOSE OF
BILLIONS OF DOLLARS IN EXPOSURE
AT SOME POINT. THE SYSTEM IS
GOING TO BREAK AND SO WE
CLEARLY. YOU KNOW AS A
LEGISLATURE WE UNDERSTAND WHY WE
NEED TO HAVE THESE OVERSIGHT
HEARINGS WHY WE NEED TO. GO
DEEPER INTO THE SUBJECT MATTER
WHY WE NEED TO. YOU KNOW BRING
ALL THE STAKEHOLDERS TO THE
TABLE AND WHY IT WAS IMPORTANT
FOR ME TO BRING SOME OF THE
CONSUMERS BECAUSE- THEY'RE THE
ONES THAT ARE PAYING THE PRICE
THEY'RE THE ONES THAT ARE AT
RISK OF. BEING NON RENEWED AND
AT SOME POINT YOU KNOW THEIR
HOMES OR STRUCTURES ARE GOING TO
FALL APART OR BURNED. AND
THEY'RE GOING TO FIND THEMSELVES
IN REALLY. YOU KNOW DIRE
SITUATION SO I DON'T WANT TO GO
FURTHER I HAVE A MILLION
QUESTIONS BY. UNFORTUNATELY I
HAVE TO CONCLUDE THIS MEETING
AND I NEED TO GET THE PUBLIC THE
OPPORTUNITY TO SPEAK. I WANT TO
SAY THANK YOU SO MUCH FOR THEIR
FAIR PLAN- WILL CIRCLE BACK IN
ANOTHER HEARING. I THINK THAT
CALIFORNIA NEEDS TO UNDERSTAND.
HOW IMPORTANT THE ISSUE IS.
WHERE WE ARE CURRENTLY AND IT'S
NOT LOOKING REALLY GOOD HERE
BECAUSE WE HAVE SO MANY ISSUES
THAT WE NEED TO- DEAL WITH- AND
TO THE ENGINE- I'D- THAT DIP.
OUR TO SAY- I. MAYBE IT'S TIME
TO PRESS REVISIT THE INTERPRET.
OF PROP ONE AT THE AS A PER. TO
THE REINSCH. BECAUSE THAT ALSO
HAS BEEN. HIGHLIGHTED HERE AT
MULTIPLE TIMES BY MANY
STAKEHOLDERS- INCLUDING OUR
FIRST PANEL SO IT'S AN ISSUE
THAT WE HAVE TO REALLY.
UNDERSTAND TACKLE AND DEAL WITH
IT WE DON'T THEN WE'RE GOING TO
CONTINUE TO HAVE THESE HIGH
RATES AND- AND IT'S- ALL ABOUT
MAKING SURE THAT OUR CONSUMERS
ARE TAKING CARE OF THAT IS. OUR
NUMBER ONE PRIORITY THAT PRO
TEM'S NUMBER ONE PRIORITY AND- I
WILL CONTINUE TO HAVE THESE
DISCUSSIONS SO. I WANT TO THANK
YOU BUT AT THIS POINT I'M GONNA
INVITE- MEMBERS OF THE PUBLIC
WISHING TO SPEAK THAT ARE
CURRENTLY HERE PRESENTS I WANT
TO MAKE COMMENTS. I'M GONNA HAVE
TO. PUT TIME CHECKS ON YOU- IF
YOU CAN KEEP IT UNDER A MINUTE
THAT WOULD BE GREAT SO. PLEASE
LINE UP AND DOES STATE YOUR NAME
AND- YOUR COMMENTS THANK YOU.
BOB GOOD MORNING CHAIR RUBIO AND
SENATORS MY NAME'S MIKE BALSAMO
ON WITH RANCHO MISSION VIEJO-
WE'RE AT TWENTY THREE THOUSAND
ACRE A PLANNED COMMUNITY IN
SOUTH ORANGE COUNTY COASTAL.
SOUTH ORANGE COUNTY. NOT NOT
LIKE LAKE ARROWHEAD- OVER THE
NEXT FIFTEEN TO TWENTY YEARS
WILL BE DEVELOPING ABOUT
FOURTEEN THOUSAND HOMES. AND
WE'RE GONNA CONSERVE ABOUT 75%
OF LAND AND NATURAL STATE. OUR
ENTIRE PROJECT IS WITHIN THE
WEEK AND- WE'VE BEEN AN EARLY
ADAPTER. FOR WILDFIRE PREVENTION
AND MITIGATION WHERE WE'RE IN
NFPA FIREWISE COMMUNITY. AND YOU
KNOW TO BE BRIEF HERE ALL SKIP
ALL OF THE MITIGATION BUT WE
WERE COVERING ALL THE CHECK
BOXES OF THE CHAPTER SEVEN A OF
THE STATE CODES DOING ALL THE
RIGHT THINGS INCLUDING FUEL
MODIFICATION. CETERA ABOUT A
YEAR AGO WE STARTED HAVING
CHALLENGES WITH INSURANCE.
RELATED TO COMMERCIAL PROPERTY
INSURANCE OUR OWNERSHIP.
ATTACHED OWNERSHIP HOUSING
CONDOS TOWNHOMES FIRST TIME HOME
BUYER. PRODUCT IN THE NAY AROUND
FIVE HUNDRED THOUSAND PRICE
POINT- AT OUR H. AWAY COMMON
AREA FACILITIES WE COULD NOT
GET. COVERAGE FROM ADMITTED
CARRIERS THAT'S TIED UP. OKAY
SORRY ACOSTA SKY ROCKETED AND.
IF WE'RE TALKING ABOUT THE AS
AND DOLLAR A MONTH IN DUES AND
FOR THE WHOLE BUYERS AND- WOULD
HAVE TO PUT THESE PER. ON AND
THERE'S A CHANCE WHAT AT THE
MOVE TO THE NAY BECAUSE GET THE
END OF CARRIERS BACK I AM SO
SORRY BUT WE HAVE A TIME CAN.
HERE A PLACE THAT'S MAKES WE
STAND MINIMUM HAVE TO CUT OFF
THANK YOU. THANKS GERMAN RUBIO
DE ON WHERE PRESENT OF THE- BILL
INDUSTRY. SO HERE'S A ROCK. GIVE
THE FOR PLAN THE BILL TO MOVE.
CAPACITY TO TWENTY WE WERE EVEN
SINCE FORTY FOR RESIDENTIAL
HABITATIONAL RISKS ONLY. PUT
ABOUT POT FOR RIGHT NOW LET'S
SOLVE THE CONSUMER PROBLEM. OUR
RATES IN NORTHERN CALIFORNIA
FOUR RUMORS WITH SIX THOUSAND
INR PERCENT. YOU'LL HAVE
HOMEOWNERS IN CONDOS HOULE FOR
CLOSE NEW HOMES IN NEXT TWELVE
MONTHS IF WE DON'T GET THE FOR A
PLAN. IN THE MARKET IMMEDIATELY
SECOND PART GET THE ADMITTED
MARKET. INDIVIDUAL COMPANIES
CALL THE COMMISSION ON WHAT IT
TAKES TO GET BACK ON THE MARKET.
THEY HAVE TO THE PRIVATELY
INDIVIDUALLY COULD ENTER INTO
TRUST LAWS BUT HOW THE SEALS
CALLED MR LAUDER WHO IS REALLY
WORKING HARD ON THIS. AND GIVE
THE SOLUTIONS WHAT IT TAKES TO
ENTER THE MARKET MISTER MARTINEZ
SUGGESTED. ENOUGH FOR FINALS
COME IS COMING IN THE MARKET CAN
WORK THAT WILL TAKE ABOUT
EIGHTEEN MONTHS TO TWO YEARS.
BUT THAT'S HOW YOU FIX PROBLEMS
. THANKS THANK YOU NEXT SPEAKER.
OKAY NO AND SOMEONE TO GO TO THE
LINE OPERATOR CAN YOU SHARE HOW
MANY PEOPLE ARE WAITING IN THE
QUEUE. THANK YOU MADAM CHAIR.
FOR THOSE OF THE PUBLIC ON THE
PHONE LINES WHO WISH TO MAKE A
COMMENT PLEASE PRESS ONE THEN
ZERO AT THIS TIME. PLEASE PRESS
ONE THEN ZERO. ONE MOMENT. BEN
CARE WE HAVE AT LEAST ONE PERSON
WHO SIGNALED THAT THEY WISH TO
SPEAK JUST ANOTHER MOMENT PLACE.
ABSOLUTELY. WE'RE GOING TO GO TO
LINE TWENTY ONE. BAKER YOU MAKE
OF IT AFTERNOON. SENATOR RUBIO
GOOD AFTERNOON THIS MY NAME IS
DAVID SCHAEFER MANDAPAM AT AGENT
IN LAFAYETTE CALIFORNIA THANK
YOU FOR HOLDING THESE HEARINGS
TODAY. SHE THE COMMENTS THAT MY
CUP- CALLING RESERVE SOVEREIGN
TALKED ABOUT EARLIER TODAY ABOUT
THE AVAILABILITY OF HOMEOWNERS
INSURANCE. AND MY INSURANCE
PRACTICE WHICH OPENED UP IN
NINETEEN EIGHTY THREE IN OAKLAND
I'VE NEVER SEEN THE MARKET PLACE
A DIFFICULT AND CHALLENGING AS
IT IS TODAY. SO WE DO NEED A
FULL ADDRESS THIS ISSUE AND FIND
SOLUTIONS TO SPEAKING OF
SOLUTIONS WE SPOKE TODAY ABOUT
THE INSURANCE COMPANIES BEING
ABLE TO CHARGE FOR REINSURANCE.
AND TO LOOK AT FUTURE MODELING
WHICH PROBLEMS FOR YOU DOES NOT
APPARENTLY ALLOW SO MY QUESTION
WOULD BE IF WE DO ALLOW THAT.
WHAT'S THE GUARANTEE THE
INSURANCE INDUSTRY THAT NOW
TELLS ME AS AN AGENT I CAN'T
FILL POLICIES BECAUSE OF THE
HOUSE LOCATION THE WILDFIRE
RISK. THAT IF THEY CAN CHARGE
HIGHER PREMIUMS THEY WILL
GUARANTEE TO ALLOW ME TO NOW
OFFER COVERAGE. AT A HIGHER
PREMIUM WITH THE TIPS WORKOUTS
TODAY THEY WON'T. OFFER COVERAGE
SO. CHARGE ARE RATES BUT ALSO.
MANDATE THEY HAVE TO NOW. LET US
PAUL. TEST THAT ISSUE. TEN
SECONDS THE NEW TO BE MORE TO.
MORE INFO IN WE PRODUCE THE
WHILE. RISK INTO. WE HAVE SEEN
THE- HOMEOWNERS AND COMMIT.
MITIGATE THE RISK IN. OR WE CAN
SIT INSURANCE. I DON'T SEE GOING
AWAY SO NOT JUST WHAT THE
INSURER INDUSTRY WILL DO THANK
YOU YOUR COM I'M SORRY SIR
YOU'RE AS- YOU FOR CALLING.
ANYBODY ELSE IN THE QUEUE. BUT
AFTER NO ONE ELSE IS SIGNALED
THAT THEY WISH TO SPEAK. THANK
YOU MODERATOR- TOOK EVERYONE
HERE THANK YOU SO MUCH FOR YOUR
PATIENCE BEING WITH US UNTIL THE
END. AS PREVIOUSLY STATED THIS
IS AN ISSUE THAT'S REALLY
IMPORTANT TO ALL OF US- I'M
ENCOURAGED BY THE FACT THAT WE
WORK REALLY WELL WITH THE-
DEPARTMENT OF INSURANCE OUR
INSURANCE COMMISSIONER DOUG A
LOT OF WERE IN CONSTANT.
COMMUNICATION AND OUT LIKE I
SAID WE SPEND QUITE A BIT OF
TIME IN DECEMBER JUST TRYING TO
TACKLE THESE ISSUES- WE KNOW
THAT THEIR IN COMMUNICATION WITH
THE INSURANCE MARKETS SO I KNOW
THAT TOGETHER WE'LL FIGURE OUT A
SOLUTION. AND WILL CIRCLE BACK
WITH OTHER OVERSIGHT HEARINGS SO
THAT WE CAN CONTINUE THE
CONVERSATION SO THANK YOU TO ALL
OF YOU HERE TODAY. AND THIS
MEETING IS ADJOURNED. HAVE A
GOOD DAY.