California, September 27, 2025
News Summary
California Governor Gavin Newsom is reviewing Senate Bill 429, aiming to create the first public wildfire catastrophe model in the U.S. The bill seeks to reform how wildfire risks are assessed and how insurance is regulated. Insurers with significant premiums will be required to submit fire risk data, increasing transparency. The initiative is backed by the American Property Casualty Insurance Association but also faces scrutiny from consumer advocates who are wary of the regulations’ transparency. The legislation is part of a broader effort to address wildfire risks amid rising costs and climate volatility.
California Governor Gavin Newsom is currently reviewing Senate Bill 429, a legislative proposal that aims to establish the nation’s first public wildfire catastrophe model. This initiative seeks to reform the state’s approach to wildfire risk assessment and regulation of insurance, an issue that has gained increasing attention in light of frequent wildfires in the region.
The proposed bill intends to enhance California’s existing wildfire risk evaluation and mandates insurers with over $10 million in written California premiums to submit fire risk data for their insured residential properties. This data will be made publicly accessible by the California insurance commissioner, allowing for greater transparency concerning fire risk.
Senate Bill 429 also proposes the creation of a Wildfire Safety and Risk Mitigation Program under the California Department of Insurance. This program would allocate funding for research needed to develop the public wildfire catastrophe model. This model will help formulate risk mitigation strategies, inform actuarial analyses, and enhance oversight of insurance rates, addressing ongoing concerns about affordability in an increasingly volatile climate.
This proposal aligns with California’s ongoing efforts to refine its wildfire risk modeling framework; earlier in July, the California Department of Insurance certified the Verisk Wildfire Model as the first approved model for setting insurance rates. The Verisk model is currently utilized 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 the legislation, emphasizing that advanced catastrophe models are crucial for stabilizing the California insurance market and improving access to coverage. However, consumer advocacy groups, such as Consumer Watchdog, have raised concerns regarding the transparency and accountability of the new regulations, specifically about the algorithms used by insurers in developing climate models.
State Senator Dave Cortese highlighted the significance of the public model in providing lawmakers with important data necessary to answer constituent questions about insurance rates, particularly regarding rising costs and regional disparities. Additionally, Insurance Commissioner Ricardo Lara has voiced support for the public wildfire model, emphasizing that it will enhance insurance affordability and yield essential insights to combat wildfire risks more effectively.
SB 429 is a component of a broader legislative package designed to tackle wildfire risks and insurance challenges, having faced minimal opposition during the legislative process. If enacted, the implementation of the public model is expected to improve transparency in wildfire risk assessment and may serve as a check on the models used by private insurers along with the Department of Insurance’s feedback.
Consumer advocates have been critical of current strategies for lacking transparency and have called for adjustments to ensure that mitigation efforts are reflected in insurance pricing. They cite models used in Colorado as successful examples of effective insurance pricing strategies. It is important to note that the passage of SB 429 does not guarantee the model’s establishment or ensure that its findings will differ from those produced by the private models used by insurers.
Frequently Asked Questions (FAQ)
What is Senate Bill 429?
Senate Bill 429 is a legislative proposal in California that aims to establish the nation’s first public wildfire catastrophe model and reform the state’s wildfire risk assessment and insurance regulation.
Who is impacted by the bill?
Insurers with over $10 million in written California premiums must submit fire risk data for their insured residential properties. The public wildfire model will provide important insights for lawmakers and consumers regarding insurance rates.
What is the Wildfire Safety and Risk Mitigation Program?
The program proposed under SB 429 will fund research necessary to develop the public wildfire catastrophe model.
What are the benefits of the public wildfire model?
The public wildfire model is expected to improve insurance affordability, enhance transparency in wildfire risk assessment, and support better oversight of insurance rates.
Have consumer advocates raised any concerns?
Yes, consumer advocates have expressed concerns regarding the transparency and accountability of the new regulations, specifically related to the algorithms used for climate models by insurers.
Key Features of Senate Bill 429
| Feature | Details |
|---|---|
| Public Wildfire Catastrophe Model | Established under California’s Senate Bill 429 to improve wildfire risk assessment. |
| Wildfire Safety and Risk Mitigation Program | Funding allocated for developing the public model through research. |
| Insurance Risk Data Submission | Insurers with over $10 million in premiums must submit fire risk data for public review. |
| Support from APCIA | American Property Casualty Insurance Association backs the legislation for stabilizing the insurance market. |
| Consumer Advocate Concerns | Calls for transparency and proper reflection of mitigation efforts in insurance pricing. |
Deeper Dive: News & Info About This Topic
- Insurance Business: California Lawmakers Considering Public Wildfire Catastrophe Model
- Wikipedia: Wildfires in California
- Dig In: California Moves to Build Public Wildfire Catastrophe Model
- Google Search: California wildfire catastrophe model
- Verisk: Wildfire Catastrophe Model Review Process in California
- Encyclopedia Britannica: Wildfire
- Risk Market News: California Lawmakers Pass Public Wildfire Catastrophe Model Legislation
- Google News: Wildfire Model California
- KPVI: California to Launch First Public Wildfire Model for Home Insurance
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, 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 Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
