Governor Gavin Newsom has unveiled a proposal aimed at stabilizing California's insurance market by expediting state approval for insurers' rate increase requests. The legislation, which could take effect this summer, seeks to address the growing homeowners' insurance crisis, particularly in areas like Orinda, which has been hard-hit by wildfires. However, the proposal has faced significant backlash from consumer watchdog groups and advocacy organizations, who argue that it would allow insurance companies to set their own prices and make insurance even more expensive. Newsom's stance marks a notable shift for a top Democrat, as he sides with industry in a long-standing feud with consumer advocates. The crisis has been exacerbated by wildfires, leading to companies like State Farm dropping more homeowners in Orinda than in any other California ZIP code. Residents are demanding faster solutions, with some even suggesting that home insurance prices should triple, a sentiment that was surprisingly cheered at a recent town hall meeting.
As California faces an insurance crisis, Gov. Gavin Newsom released a new proposal to allow carriers to raise rates faster. Some critics are already “freaking out.” https://t.co/jLtRt22tmy
"When a resident of Orinda suggested that home insurance prices should triple,attendees at a town hall Wednesday night had a surprising response. They cheered." Angry homeowners in affluent CA city demand faster action on insurance crisis https://t.co/zJjQYDRkLi via @sfchronicle
State Farm dropped more homeowners in Orinda than in any other California ZIP code. Now residents are demanding a faster solution to California’s insurance crisis. https://t.co/l55hBFOFcI
Homeowners in affluent Orinda have been especially hard-hit by California's insurance crisis. And they're not happy. https://t.co/hlBcm1DIv6 @meganfanmunce
Consumer watchdog groups say insurance will become even more expensive in California, under a plan unveiled by Gov. Gavin Newsom. https://t.co/VE10HmJxIv
The wildfire insurance problem in California has gotten so bad that Gavin Newsom is taking a counter-intuitive stance for a top Democrat: siding with industry in its long-standing feud with consumer advocates. https://t.co/vw0IAk1iYS https://t.co/AJqvpZqI9Q
The homeowners' insurance crisis is hitting the community of Orinda hard. https://t.co/CAdhsnGTdJ
Newsom’s plan to accelerate rate hikes ‘invites insurance companies to set their own prices,’ advocacy group contends https://t.co/q2nriJcSuN
California consumer group blasts insurance bill backed by Newsom https://t.co/KkOUkmI6QR
How Gavin Newsom's proposal to stabilize California's insurance market would work. Hint: faster rate increases! https://t.co/Imx8n4sE6u @meganfanmunce
Gov. Gavin Newsom has provided new details this week on his proposal to bolster California’s insurance market by speeding state approval for insurers’ rate increase requests. The legislation could take effect this summer. https://t.co/KTo1FqupPN