California’s insurance crisis is pervasive but fixable

By Stacey Korsgaden, especially for CalMatters

This comment was originally posted by CalMatters. Sign up for their newsletters.

Guest Comment written by

As the first anniversary of Southern California’s devastating wildfires approaches, CalMatters asked candidates for the 2026 state insurance commissioner race to share thoughts on what the state can do to help victims and stabilize insurers. This is the third answer. Read other candidates’ answers here and here.

California is facing an insurance crisis that threatens the financial security of families, homeowners and small businesses across the state.

Coverage is becoming more difficult to obtain, premiums are rising and policy cancellations are increasing. This development is understandably alarming. But the good news: There is hope.

I have been a licensed insurance professional since 1988 and with nearly 40 years of experience I can tell you that insurance is not just a financial product, it is a promise. It is a cornerstone of economic stability that allows families to recover from tragedy and businesses to survive unexpected losses. This system has served California well for generations. He can do it again.

Throughout my career as an insurance agent and business owner, my work began long before a claim was filed. The most important service we provided was preparation, making sure customers were properly protected before disaster struck. When the unthinkable happened, being there to guide them through recovery was both a responsibility and a privilege. This is the role that insurance should play in society.

So how did we get to a point where insurers are pulling back, denying coverage or leaving entire markets? The answer is not sudden greed or indifference. This is the result of decades of regulatory accumulation, tight price controls, inadequate wildfire prevention and mitigation, and other unmanageable risk factors that have steadily undermined the stability of the system.

Insurance is fundamentally about the accurate pricing of risk. When this process is limited, insurers cannot operate reliably. The result is exactly what Californians are experiencing now: reduced availability, deteriorating service, fewer choices for consumers and escalating prices.

Customers are angry and confused. Agents are left with no options for their clients. Insurers are facing mounting losses. Meanwhile, political finger-pointing has replaced serious discussion, and trust in the system continues to fall.

California does not have to choose between consumer protection and a functioning insurance market. We can have both. Achieving this balance requires a re-empowerment of fundamental principles: free markets, actuarial stability, California managing wildfire risks, and enabling private sector innovation.

Insurance thrives on predictability and trust. When these elements are restored, capital is returned, coverage is expanded, and our working families benefit from greater choice and better service.

When a functioning free market is restored in California, capital will return and support the growth of insurers willing to serve the state. Renewed competition will naturally reduce reliance on the FAIR plan and allow it to be depopulated.

The FAIR plan was never intended to insure the many. It is designed as a last resort for a limited number of high risk properties. Its long-term stability depends on removing the excess burden created by the lack of a competitive private market.

As insurers can once again grow and write policies in California, coverage will return to where it belongs in the private market, restoring balance and choice to our community.

The insurance industry has long been a quiet but essential pillar of our economy. With truth, discipline and hard work it can be again. This crisis is fixable.

Candidate guest comments are published in the order they are received.

This article was originally published on CalMatters and is republished under Creative Commons Attribution-NonCommercial-No Derivatives license.