image credit: Unsplash

Consumer group highlights “loopholes” in California’s insurance reforms

November 3, 2023

A consumer advocacy group in California has claimed that a rule introduced by insurance commissioner Ricardo Lara lacks substantial consumer benefits and is marred by “loopholes.”

The rule, which is part of a larger reform package set to be implemented in December 2024, sees insurers agree to return to fire risk zones up to a certain threshold equivalent to 85% of their statewide market share.

In exchange, they would be allowed to utilize catastrophe models and include reinsurance costs in their pricing.

Read More on Insurance Business