California, September 27, 2025
News Summary
California Governor Gavin Newsom is reviewing Senate Bill 429, which aims to create the first public wildfire catastrophe model in the U.S. The model seeks to improve wildfire risk assessment and insurance regulation. This initiative includes a Wildfire Safety and Risk Mitigation Program to facilitate research and transparency in wildfire risk information. While supported by industry stakeholders, concerns have been raised by consumer advocates regarding the transparency of the new regulations. The bill’s implementation may enhance insurance affordability and address disparities in insurance rates across various regions.
California
The California Governor Gavin Newsom is currently reviewing Senate Bill 429, which proposes the establishment of the nation’s first public wildfire catastrophe model. This important bill aims to transform the state’s approach to wildfire risk assessment and insurance regulation.
Under current law, insurers with over $10 million in written California premiums are required to submit fire risk data pertinent to their insured residential properties. The California insurance commissioner is responsible for making this fire risk information public, enhancing transparency in wildfire risk assessment.
Senate Bill 429 introduces the creation of a Wildfire Safety and Risk Mitigation Program under the California Department of Insurance. This program is designed to fund research to develop the public wildfire catastrophe model. The model and its associated research will inform vital strategies for risk mitigation, support actuarial analyses, and bolster oversight of insurance rates within the state.
This initiative is part of a broader effort to refine California’s wildfire risk modeling framework. In July, the California Department of Insurance certified the Verisk Wildfire Model as the first approved model for insurance rate-setting. The Verisk model is already in operation in other states and was developed by the company’s Extreme Event Solutions unit.
The American Property Casualty Insurance Association (APCIA) has expressed support for this legislation, asserting that advanced catastrophe models are essential for stabilizing California’s insurance market and enhancing access to coverage. However, consumer advocates, such as Consumer Watchdog, have voiced concerns regarding the transparency and accountability of the new regulations, particularly with the climate model algorithms used by insurers.
State Senator Dave Cortese has highlighted the significance of the public model in equipping lawmakers with essential data to address constituents’ queries concerning insurance rates, including the rationale behind rate increases and the disparities in rates among different geographical areas.
Insurance Commissioner Ricardo Lara has also endorsed the public wildfire model, indicating that it will enhance insurance affordability while providing important insights to help mitigate wildfire risks. The bill has encountered minimal opposition throughout the legislative process.
The anticipated implementation of the public model is expected to increase transparency in wildfire risk assessment processes and may also serve as a check against the models utilized by private insurers and the responses from the Department of Insurance.
Consumer advocates have criticized current strategies for lacking transparency and have called for revisions to ensure that mitigation efforts influence insurance pricing, referencing successful initiatives implemented in Colorado.
Despite the passage of the bill, it does not guarantee that the model will be created or that the findings will differ significantly from those of the private models employed by insurers.
Key Features of Senate Bill 429
- Establishment of the first public wildfire catastrophe model in the U.S.
- Inclusivity of Wildfire Safety and Risk Mitigation Program under the California Department of Insurance.
- Requirements for insurers to submit fire risk data for residential properties exceeding $10 million.
- Public availability of fire risk information through the California insurance commissioner.
- Support from a significant insurance association and potential consumer advocacy concerns.
FAQ
What is Senate Bill 429?
Senate Bill 429 is a proposal under review by California Governor Gavin Newsom that aims to establish the nation’s first public wildfire catastrophe model.
What will the public wildfire catastrophe model do?
The model will be utilized to develop risk mitigation strategies, inform actuarial analyses, and support oversight of insurance rates in California.
What is the Wildfire Safety and Risk Mitigation Program?
The Wildfire Safety and Risk Mitigation Program is a proposed initiative under the California Department of Insurance that will fund research for the development of the public wildfire catastrophe model.
What has been the response from the insurance industry?
The American Property Casualty Insurance Association (APCIA) supports the legislation, stating that advanced catastrophe models are critical for stabilizing California’s insurance market and improving coverage access.
Are there any concerns regarding this bill?
Yes, consumer advocates have raised concerns about transparency and the accountability of the new regulations regarding climate model algorithms used by insurers.
What is the status of the bill?
The bill faced minimal opposition during the legislative process and is part of a larger legislative package addressing wildfire risks and insurance challenges in California.
Deeper Dive: News & Info About This Topic
- Insurance Business: California Lawmakers Considering Nation’s First Public Wildfire Catastrophe Model
- Dig In: California Moves to Build Public Wildfire Catastrophe Model
- Verisk: First to Complete Wildfire Catastrophe Model Review Process in California
- Insurance Day: Catastrophe Modellers Welcome California Public Wildfire Model
- Property Casualty 360: California Approves First Wildfire Catastrophe Model
- Wikipedia: Wildfires in California
- Google Search: California Wildfire Catastrophe Model
- Google Scholar: California Wildfire Catastrophe Model
- Encyclopedia Britannica: Wildfire
- Google News: California Wildfire Catastrophe Model
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
