California, September 27, 2025
News Summary
California Governor Gavin Newsom is reviewing Senate Bill 429, which aims to create the nation’s first public wildfire catastrophe model to better assess and regulate wildfire risks and insurance. The proposed Wildfire Safety and Risk Mitigation Program will fund necessary research, providing transparency on insurance rates and helping address the rising concerns of wildfire-related losses. Supported by the American Property Casualty Insurance Association, the bill aims to enhance public understanding and oversight of wildfire risk assessments in the state.
California Governor Gavin Newsom is currently reviewing Senate Bill 429, which aims to establish the nation’s first public wildfire catastrophe model. This significant legislative proposal seeks to enhance the state’s approach to wildfire risk assessment and insurance regulation, marking a crucial step in addressing the rising concerns related to wildfire-related losses across the state.
The proposed bill outlines a framework for the creation of the Wildfire Safety and Risk Mitigation Program under the California Department of Insurance. This program would fund research necessary for developing the public wildfire catastrophe model. Under existing law, insurers with over $10 million in written premiums in California are required to submit fire risk data for residential properties they insure. The California insurance commissioner is responsible for making this information accessible to the public.
Senate Bill 429 not only aims to create a comprehensive wildfire risk assessment model but also intends to use the associated research to devise risk mitigation strategies, inform actuarial analyses, and enhance oversight of insurance rates in California. This initiative follows recent advancements in the state’s wildfire risk modeling framework. Earlier in July, the California Department of Insurance certified the Verisk Wildfire Model, marking it as the first approved model for insurance rate-setting, which is already in use in other states.
Support for the legislation is strong, especially from the American Property Casualty Insurance Association (APCIA). The APCIA asserts that advanced catastrophe models are vital to stabilizing California’s insurance market and improving access to coverage for residents. Meanwhile, consumer advocates like Consumer Watchdog have raised potential concerns about issues of transparency and accountability regarding the regulatory framework surrounding the climate model algorithms employed by insurers.
State Senator Dave Cortese highlighted the significance of the public model as it provides lawmakers essential data to answer questions constituents may have regarding insurance rates, particularly concerning the reasons behind rate increases and the disparities in premiums across different regions. Additionally, Insurance Commissioner Ricardo Lara has expressed support for the public wildfire model, noting that it holds the potential to improve insurance affordability and furnish necessary insights to mitigate wildfire risks.
Senate Bill 429 is also part of a broader legislative initiative aimed at addressing wildfire threats and insurance challenges that have become increasingly pressing in recent years. The bill faced minimal opposition during the legislative process, reflecting a shared understanding of the need for effective risk assessment strategies. If passed, the implementation of the public model is expected to enhance transparency surrounding wildfire risk assessments and may serve as a check on the models used by private insurers as well as the actions taken by the Department of Insurance.
However, consumer advocates have criticized some existing strategies for their lack of transparency, calling for improvements to ensure that mitigation strategies are accurately reflected in insurance pricing. They cite successful measures implemented in states like Colorado as potential frameworks for improvement. It’s important to note that the passage of this bill does not guarantee the establishment of a new model or that the results will differ from those obtained from the private models utilized by insurers.
FAQ
What is Senate Bill 429?
Senate Bill 429 is a legislative proposal under review by California Governor Gavin Newsom, aiming to establish the nation’s first public wildfire catastrophe model to enhance wildfire risk assessment and insurance regulation.
What does Senate Bill 429 propose?
The bill proposes the creation of a Wildfire Safety and Risk Mitigation Program under the California Department of Insurance to fund research for developing a public wildfire catastrophe model.
Who supports Senate Bill 429?
The American Property Casualty Insurance Association (APCIA) supports the legislation, stating that advanced catastrophe models are essential for stabilizing California’s insurance market and improving access to coverage.
What are consumer advocates’ concerns about Senate Bill 429?
Consumer advocates like Consumer Watchdog have raised concerns regarding transparency and the accountability of the new regulations concerning the climate model algorithms used by insurers.
Does the passage of Senate Bill 429 guarantee a distinct wildfire catastrophe model?
No, the passage of the bill does not guarantee the model’s creation or that it will have different findings from those of private models used by insurers.
Key Features of Senate Bill 429
| Feature | Description |
|---|---|
| Public Wildfire Catastrophe Model | Establishment of a model to assess wildfire risks publicly. |
| Wildfire Safety and Risk Mitigation Program | Funding for research and development of the catastrophe model. |
| Transparency and Accountability | Critiques on the need for transparency in the use of climate models by insurance companies. |
| Endorsements | Supported by industry groups like the APCIA. |
| Legislative Context | Part of broader wildfire risk and insurance legislative efforts. |
Deeper Dive: News & Info About This Topic
- Insurance Business: California Lawmakers Considering Public Wildfire Catastrophe Model
- Wikipedia: Wildfire
- Digin: California Moves to Build Public Wildfire Catastrophe Model
- Google Search: California wildfire catastrophe model
- Verisk: First to Complete Wildfire Catastrophe Model Review Process
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego 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 Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
