California, September 27, 2025
News Summary
California is progressing with Senate Bill 429, aiming to establish the first public wildfire catastrophe model in the U.S. The bill is under review by Governor Gavin Newsom and seeks to enhance wildfire risk assessments and insurance regulations. It proposes a Wildfire Safety and Risk Mitigation Program to fund research necessary for the model. Industry support has been noted, but consumer advocates raise concerns regarding transparency. The initiative underscores California’s ongoing efforts to refine wildfire risk management and insurance stability.
California is moving forward with Senate Bill 429, a significant legislative proposal aimed at establishing the nation’s first public wildfire catastrophe model. Currently under review by Governor Gavin Newsom, the bill seeks to reshape wildfire risk assessment and insurance regulation within the state.
The primary goal of SB 429 is to expand the existing framework governing wildfire risk assessments for insurers operating in California. Under current regulations, insurers with over $10 million in written premiums within the state are required to submit fire risk data for their insured residential properties to the California insurance commissioner. The information collected must then be made public, promoting transparency in the evaluation of wildfire risks.
Senate Bill 429 proposes the establishment of a Wildfire Safety and Risk Mitigation Program under the California Department of Insurance. The initiative aims to fund research dedicated to the creation of the public wildfire catastrophe model. This model, along with the associated research, is intended to develop risk mitigation strategies, provide insights for actuarial analyses, and assist in the oversight of insurance rates.
This move comes in the wake of California’s ongoing efforts to refine its wildfire risk modeling framework. Earlier in July, the California Department of Insurance certified the Verisk Wildfire Model as the first approved model for insurance rate-setting. The Verisk model, already utilized in other states, was developed by the company’s Extreme Event Solutions unit and is seen as a pivotal step towards strengthening the state’s insurance stability.
The American Property Casualty Insurance Association (APCIA) has expressed its support for the legislation, highlighting the importance of advanced catastrophe models in stabilizing California’s insurance market and enhancing access to coverage for residents. However, consumer advocates, including Consumer Watchdog, have voiced concerns regarding the transparency and accountability of the proposed regulations. Specifically, they worry about the climate model algorithms employed by insurers and the potential implications of their use.
State Senator Dave Cortese has underscored the public model’s significance in equipping lawmakers with crucial data. Such information is essential for addressing constituents’ inquiries regarding insurance rates, including the causes behind rate increases and the variations in rates across different geographical regions.
Insurance Commissioner Ricardo Lara has also expressed support for the public wildfire model. He believes it will contribute to making insurance more affordable while providing essential insights necessary for reducing wildfire risks. Furthermore, the bill is part of a more extensive legislative package addressing the challenges related to wildfire risks and insurance issues, having faced minimal opposition during the legislative process.
The anticipated implementation of the public model is expected to enhance transparency in wildfire risk assessment and could potentially serve as a counterbalance to the models used by private insurers as well as the responses from the Department of Insurance. Consumer advocates have criticized existing strategies for their lack of transparency. They have called for adjustments to ensure mitigation efforts are reflected in insurance pricing, citing successful examples from initiatives in Colorado.
Nonetheless, the passage of Senate Bill 429 does not guarantee the establishment of the model or that it will yield findings distinct from those produced by the private models currently employed by insurers. This highlights the ongoing complexity surrounding wildfire risk assessments and insurance regulation in California.
FAQ
What is California Senate Bill 429?
Senate Bill 429 is a legislative proposal aimed at establishing the nation’s first public wildfire catastrophe model in California.
What does SB 429 aim to achieve?
The bill seeks to expand California’s approach to wildfire risk assessment and insurance regulation.
What information are insurers required to submit under current law?
Insurers with over $10 million in written California premiums must submit fire risk data for their insured residential properties.
What role does the California insurance commissioner play?
The insurance commissioner is responsible for making fire risk information available to the public.
What is the proposed Wildfire Safety and Risk Mitigation Program?
It is a program under the California Department of Insurance proposed to fund research for developing the public wildfire catastrophe model.
What will the public wildfire model be used for?
The model and associated research will be utilized for formulating risk mitigation strategies, informing actuarial analyses, and supporting oversight of insurance rates.
What previous model was recently certified in California?
The California Department of Insurance certified the Verisk Wildfire Model as the first approved model for insurance rate-setting.
What support is there for Senate Bill 429?
The American Property Casualty Insurance Association (APCIA) supports the legislation, citing the importance of advanced catastrophe models for stabilizing the insurance market.
What concerns have consumer advocates raised?
Consumer advocates have raised concerns about transparency and the accountability of new regulations regarding the climate model algorithms used by insurers.
What will be the expected benefits of the public wildfire model?
The public wildfire model is expected to enhance transparency in wildfire risk assessments and possibly serve as a check on insurance pricing and practices.
Does the passage of SB 429 guarantee the model’s creation?
No, the passage of the bill does not guarantee the model’s creation or that it will have distinct findings from existing private models.
Chart: Key Features of Senate Bill 429
| Feature | Description |
|---|---|
| Public Wildfire Catastrophe Model | Establishment of the first public model in the nation to assess wildfire risks. |
| Wildfire Safety and Risk Mitigation Program | Program under the California Department of Insurance to fund research for the public wildfire model. |
| Insurance Data Transparency | Insurers with over $10 million must submit fire risk data for residential properties. |
| California Insurance Commissioner | Responsible for making fire risk information available to the public. |
| Support from Industry | Backed by the American Property Casualty Insurance Association for stabilizing the insurance market. |
| Consumer Concerns | Advocates raise concerns about transparency and algorithm accountability used by insurers. |
| Legislative Support | Part of broader efforts to address wildfire risks, with minimal opposition. |
| Limitations | Passage of the bill does not guarantee distinct findings from private models used by insurers. |
Deeper Dive: News & Info About This Topic
- Insurance Business Magazine: California Lawmakers Considering Nation’s First Public Wildfire Catastrophe Model
- Verisk: First to Complete Wildfire Catastrophe Model Review Process in California
- KPVI: California Set to Launch First Public Wildfire Model for Home Insurance
- Insurance Journal: California Approves First Wildfire Catastrophe Model
- Wikipedia: Wildfire
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LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
