Part 10/13:
California has historically lagged behind other states in insurance rate regulation. Traditionally a prior approval state, insurers must submit detailed rate requests and wait for approval, a process that can take many months. Recent reforms have modernized this process, permitting insurers to adopt advanced models based on predictive analytics—incorporating factors like property location, construction quality, and environmental risks—thus providing more accurate and stable pricing.
This new system aims to balance adequate premiums that ensure insurer solvency with affordability for consumers. As more companies adopt these innovations, there’s hope that the market will return to healthier levels of competition and coverage.