Who’s Leading the Race for Insurance Commissioner?

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Californians close the polls Tuesday to choose who they think is best qualified to fill one of the state’s toughest positions: that of insurance commissioner.

The commissioner is responsible for regulating the nation’s largest property insurance market, which includes home and auto insurance as well as health, pet, rideshare and life insurance, as well as workers’ compensation.

In recent years, however, with the growing risk of wildfires, the hot topic has been home and fire insurance. The next commissioner will face numerous challenges, including striking the balance between the availability and affordability of homeowners insurance. Some insurance companies that had stopped renewing policies or issuing new ones in recent years are now taking advantage of new regulations that allow them to use new tools to set their rates. This usually includes increased premiums, as the Department of Insurance, led by the commissioner, is likely to continue to approve increases in the cost of home insurance.

The new commissioner will also have to deal with the aftermath of last year’s wildfires in Los Angeles County. Delays and cancellations Insurance claims are a key factor in delaying reconstruction and recovery. State Farm, California’s largest individual insurer, and FAIR Plan, the state’s fire insurance provider of last resort, are facing lawsuits from homeowners and to legal action by the insurance department due to the processing of claims arising from these fires.

The leading Democratic candidates are state senators Ben Allen whose mandate in the Legislative Assembly is coming to an end; Jane Kim, a leader of the California Working Families Party who served on the San Francisco Board of Supervisors; Patrick Wolff, a financial analyst with no public service experience; and Steven Bradford, former state senator and lawmaker. Neither major Republican candidate has held statewide office: Stacey Korsgaden is a longtime insurance agent, and Merritt Farron is an attorney who lost his home in the Palisades fire last year.

Candidates interviewed by CalMatters They mostly agreed on the problems that needed to be solved, but offered different solutions. Some interceded greater financial participation of the state : Kim wants to create a state fire and flood authority funded by a portion of policyholders’ premiums. Farron wants to create a state reinsurance authority funded by a fee that insurers charge policyholders, something Kim and Allen have expressed interest in. Bradford said he would explore a public-private partnership to help insurers continue to write policies in California.

Consumer advocacy groups and former insurance commissioners say the task is complex and involves “ a difficult balance ” that takes into account the needs of homeowners, business owners, landlords and tenants while assuring insurance companies that the rates they charge are commensurate with the state’s increasing wildfire risk.

U.S. Rep. John Garamendi, the Democratic congressman whose district includes much of Contra Costa and Solano counties, was the state’s first insurance commissioner and served two terms. He told CalMatters that the position of commissioner is a complex, difficult and detailed job.