California Insurance Crisis, interview with Deputy Insurance Commissioner MICHAEL SOLLER

Published Date: 04/16/2024

In today's show we speak with California Department of Insurance Deputy Insurance Commissioner Michael Soller. We talk about -

1) The state of the California Insurance market

2) The powers the California Department of Insurance has at its disposal

3) "Consumer" Watchdog

4) State Farm non-renewals

5) State Farm financial rating drop from AM Best Company

6) The California Sustainable Insurance Strategy

7) California Insurance premium increases 

8) California insurance crisis

9) California homeowners insurance availability crisis

10) Timelines for change

11) Discounts for homeowners insurance

12) California FAIR Plan Association

13) California Legislative powers over the Insurance market

14) California FAIR Plan's ability to pay claims

15) State Farm's ability to pay claims

16) Climate change

17) How the Department of Insurance can help

Also covered:

Role and Mission of the Department of Insurance

Impact of State Farm’s Policy Changes

Response to Industry Changes

Consumer Concerns and Confusion

Tools and Resources for Consumers

Challenges with the California FAIR Plan

Legislative and Regulatory Framework

Sustainable Insurance Strategy

Future Directions and Reforms

Public Engagement and Input

Contact the California Department of Insurance for assistance at (800) 927-4357 and at https://insurance.ca.gov

Insurance Hour is hosted by renowned insurance expert Karl Susman. Karl is a frequent guest on television stations such as ABC, CBS and FOX, NBC and now his popular radio program is syndicated across California reaching over 30,000,000 listeners.

Listeners can now tune in to Insurance Hour on:

KMET AM1490 – Inland Empire – Friday 8-9am

KTRB AM860 – San Francisco – Saturday 7-8am

KEIB AM1150 – Los Angeles – Saturday 12-1pm

KCBQ AM1170 – San Diego – Saturday 1-2pm

KFBK AM1530 – Sacramento – Sunday 5-6pm

KCAA AM1050 – Riverside – Thursday 7-8am

KZSB AM1290 – Santa Barbara – Wednesday 9:52am

For more information about Insurance Hour and its programming, please contact pr@insurancehour.com

More details -

Role and Mission of the Department of Insurance: The California Department of Insurance is dedicated to overseeing the insurance market, ensuring consumer protection, making insurance accessible, and keeping rates as affordable as possible given the state’s risks.

Impact of State Farm’s Policy Changes: State Farm's decision to non-renew 72,000 policies caused significant disruption, reflecting the company's significant market share and raising concerns about its financial health.

Response to Industry Changes: The Department of Insurance is actively monitoring and regulating insurance companies like State Farm to ensure compliance and financial stability.

Consumer Concerns and Confusion: There is widespread consumer confusion and concern regarding the availability and affordability of insurance, especially in the context of significant policy changes by major providers like State Farm.

Tools and Resources for Consumers: The Department of Insurance offers various tools and resources to help consumers find insurance providers, especially in underserved or high-risk areas.

Challenges with the California FAIR Plan: The FAIR Plan serves as an insurer of last resort but faces challenges related to growth, solvency, and service provision, necessitating modernization and improvement to meet consumer needs better.

Legislative and Regulatory Framework: Discussion on California’s Proposition 103, which regulates insurance rates and practices, aiming to ensure that rates are not excessively high or inadequate and prevent unfair discrimination.

Sustainable Insurance Strategy: This strategy aims to improve the insurance market's function, making insurance more widely available and affordably priced across the state.

Future Directions and Reforms: The podcast discusses potential regulatory reforms and strategies to improve insurance accessibility and affordability, including catastrophe modeling and adjustments to reinsurance costs.

Public Engagement and Input: The Department of Insurance emphasizes the importance of public input and engagement in shaping insurance policies and practices, ensuring that they reflect the needs and concerns of Californians.