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California’s put a hardcore socialist in charge of its broken insurance market. Now homeowners face a dangerous experiment
Jane Kim has declared victory in California’s insurance commissioner race, though the count is not final. Her election matters because she has proposed expanding public disaster insurance as homeowners face rising premiums, policy non-renewals and fewer private insurers willing to cover them.
Kim, a former San Francisco supervisor and California political director for Bernie Sanders, supports a universal disaster insurance programme, a public auto insurance option and limits on insurers’ share of premiums. Her disaster plan’s cost has not been set; critics say pooling homeowners with different risks could weaken incentives to protect properties. California’s FAIR Plan, the state-backed insurer of last resort, now covers nearly 700,000 policies, about 2.5 times its 2022 total, and faces an average 29.1% rate increase this autumn.
In short
- Jane Kim has declared victory in California’s insurance commissioner race.
- Her proposals include universal public disaster coverage.
- The FAIR Plan covers nearly 700,000 policies and faces a 29.1% rate rise.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
With private insurers withdrawing and premiums rising, a universal public disaster insurance programme could give homeowners reliable cover and spread costs across a wider pool. Supporters may also argue that public options and limits on insurers’ premium shares would improve accountability and protect people from being priced out of coverage.
The case against
A broad public programme could leave taxpayers or policyholders exposed to substantial costs, particularly if its design does not reflect different levels of risk. Critics may argue that pooling those risks too widely weakens incentives to make homes safer, while the plan’s unspecified cost makes it difficult to judge its long-term affordability.
Explained simply
California’s insurance commissioner regulates insurers and reviews proposed rate changes. The office has become more prominent as wildfires and other disaster risks have made cover harder to find or afford in parts of the state, prompting some private insurers to stop offering or renewing policies.
When private cover is unavailable, homeowners can turn to the California FAIR Plan, a state-backed insurer of last resort. Its policy numbers have grown sharply since 2022, and it is seeking a substantial rate increase. Jane Kim, a former San Francisco supervisor, has proposed a universal public disaster insurance programme, alongside other changes to insurance.
Kim’s plan does not yet have a set cost. One question is how a public programme would share costs among properties with different levels of risk, and how that might affect incentives to reduce damage. The debate matters to homeowners, insurers and the state, which must consider access to cover, prices and the financial risks of disasters.
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