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.
