california to establish wildfire catastrophe model--insurance
Insurance rates are reviewed by every state. Typically, there is an Insurance Commissioner involved in the process. Now the State of California is stepping into the process by establishing its own public wildfire catastrophe model. The availability and pricing of property insurance is what is on the table.
See announcement below:
California Bill to Build First-of-Its-Kind Public Wildfire Catastrophe Model Heads To Governor’s Desk
Proposal, which aims to inform insurance rates, moves to Governor Newsom’s desk after legislature approves plan
For Immediate Release: September 15, 2025
Contact: Patrick Davis, pdavis@citizen.org
WASHINGTON, D.C. — On the final day of the state’s legislative session, the California State Senate on Friday voted to move forward with a plan to build a first-of-its-kind public wildfire catastrophe model to assess wildfire risk and help inform insurance rates. Insurance companies currently use catastrophe models to assess risk of potential loss across from disasters. If signed into law, California would be the first state in the country to build its own public wildfire catastrophe model. In response, Mekedas Belayneh, policy advocate with Public Citizen’s Climate Program, issued the following statement:
"Insurers have hidden behind opaque, ‘black-box’ catastrophe models to set rates and coverage. At the same time, insurers have hiked rates and in some cases abandoned regions, citing the risks of disasters and extreme weather driven by climate change. Vulnerable communities facing climate-driven rate hikes or losing coverage have no way to understand or challenge these decisions.
“By establishing a public wildfire catastrophe model, California is leading the nation in promoting transparency and fairness in insurance pricing and giving regulators and policymakers the tools they need to better protect consumers. "
Further Reading: Public Citizen letter to Chair of California’s Senate Insurance Committee supporting legislation
