Special Episode: California Insurance Crisis – Keynote by California Insurance Commissioner Ricardo Lara

CAPITOL WEEKLY PODCAST: In this Special Episode, we present the Keynote address from yesterday’s California Insurance Crisis, by California Insurance Commissioner Ricardo Lara 

Commissioner Lara delivered a fierce defense of his administration’s efforts to stabilize the state’s struggling property insurance market, outlining new proposals and initiatives, including formation of a Smoke Claims and Remediation Task Force. He blasted special interests, and his predecessors in the office – both Republican and Democratic – describing them as placeholders who refused to address systematic problems in the state’s insurance market.  For nearly forty minutes, Lara made the case for the work he and his department have done so far, and admitted that other necessary corrections – including possible rate hikes – may not be popular. “I might end up being the most unelectable person, but I don’t care, because this is going to be the most meaningful work that I do for the state of California.”

This Special Episode of the Capitol Weekly Podcast was recorded live at the California Insurance Crisis, which was held in Sacramento on Wednesday, May 14, 2025

This is the KEYNOTE – CALIFORNIA INSURANCE COMMISSIONER RICARDO LARA

 Introduced by Rich Ehisen, Capitol Weekly

 This transcript has been edited for clarity.

RICH EHISEN: Well, hello everybody and welcome back. We’re going to introduce our keynote speaker. Now as everybody in this room is surely well aware our keynote speaker today has one of the toughest jobs in California right now. We didn’t use the word “crisis” lightly. It is the one that has been ongoing. And, of course lots and lots of smart people are working on it, including our keynote speaker. So his bio Is in the program, I’m not going to go into that. I’m just going to say, ladies and gentlemen, please welcome Insurance Commissioner Ricardo Lara.

RICARDO LARA: Good afternoon. Thank you, Tim. Thank you, Tim, Rich and the entire Capitol Weekly team for inviting us writing us together today at such a pivotal moment. And I hope you’re here, and I got your listening ears today because I’m not here for small talk. So buckle up. We’re going to have a good conversation.

And we’re here because Californians are definitely in a crisis and one that has been brewing and has been in decades in the making. And it’s now our shared responsibility to fix it.

“So we just can’t talk about affordability without first addressing availability. You can’t afford what doesn’t exist”

Let me be clear, and I’ve, as we’ve been talking about for now several years, we are in a statewide insurance crisis. And not a media-driven moment for some to exploit, not a policy debate – A real life crisis impacting millions of Californians.

This is not a game to me. Tough decisions have to be made. Let’s be honest, we’ve been behind for the past 30 years. California should be leading the nation, not lagging behind it. But for more than 30 years, we’ve ceded the driver’s seat to entrenched interests. Some groups, like Consumer Watchdog and the insurance lobby have carved out powerful and, you know, in a system that rewards gridlock, where being loud has often mattered more than actually being effective. These groups have played by old rules arguing against reforms while the market has crumbled beneath us. And while they’ve continued to collect fees and made headlines, Californians have been left without coverage.

That’s not leadership. That’s the politics of delay. And we are confronting it head on. And people aren’t just shopping for insurance, they’re actually hunting for it. Some can’t even find it at any price. Others are being dropped despite having spotless records, and for far too many, are being forced onto the FAIR plan. Paying for less stuck in costly difference in conditions policies just to protect their homes or to even get a mortgage. That’s not a functioning market. That’s complete and utter failure.

So we just can’t talk about affordability without first addressing availability. You can’t afford what doesn’t exist, plain and simple. And you shouldn’t be punished for doing everything right. Our mission is simple. Consumers must have real choices. Our goal is to rebuild a sustainable insurance market where companies want to do business, not leave the state. A market where Californians can protect the homes and lives they’ve worked so hard to build.

Let me also speak directly to wildfire survivors and those in high risk areas. We hear you. We see you, and we are here with you. I’ve been with you in every single county in this state. That’s why we have been working quickly. Within days of disasters, we’ve held in-person recovery workshops, getting checks into hands for housing, bringing insurance companies, FEMA, our staff under one roof where we’ve helped over 11,000 wildfire survivors and recovered more than $30 million through our complaint process.

We’ve required companies to pay advances without forcing detailed home inventories, pushed legislation, like Eliminate the List Act and reminded insurers toxic smoke damage is real, and it must be covered.

Let’s talk about the tough decision I just made yesterday. This year, State Farm asked for an emergency rate hike. While millions of Californians continue to face affordability challenges and non-renewals. I demanded transparency. I ordered them to provide data and held multiple public meetings. I insisted that State Farm’s parent company contribute cash to support its California company, not just pass the cost to California consumers. I referred the matter to an independent administrative law judge because this is about protecting consumers and our entire insurance market.

By the way, this was unprecedented. We haven’t done this before. The judge found that State Farm is in serious financial distress, and recommended a plan that requires them to secure a $400 million cash infusion from their parent company. I adopted the order because it strikes a balance, protecting consumers from further instability and the integrity of our market. Additionally, State Farm has to stop any new non renewals through 2025 and they have to show us their recovery plan in a full rate hearing this year.

I won’t let any company exploit this crisis or walk away from Californians who’ve paid their premiums and have played by the rules. Today we are experiencing the aftermath of the worst wildfires in California’s history. Urban fires that devastated entire neighborhoods and spread toxic soot and ash across wide regions of our state.

“Too often, insurance commissioners treated problems as PR moments, putting out press releases instead of addressing the policies and the actual practices that created the crisis in the first place”

In the past, we’ve experienced massive fires, including in Santa Rosa and in Paradise. We’ve responded with new insurance rules and laws to improve the payments of claims, and we’ve cut red tape. But let me be very clear. We have never, ever experienced something of this magnitude across such a large urban area like the L.A. fires.

For the past 30 years, there have been no common standards for paying smoke damage claims. The result of this is that people are forced to go back to homes that are not safe. Grandmothers are forced to scrub walls stained with soot and smoke before they can even introduce a claim. This is happening now. This is horrible and unacceptable. This is why we have to take action to protect people now and for the future. And we recognise that smoke damage is a serious and growing concern for many Californians.

I have ordered insurers to fully investigate and pay legitimate smoke damage claims in accordance with California law. Actually, last week I sent a letter to the FAIR plan directing them to act like every other insurance company, because they are, and fully investigate these claims based on industry best practices and our legal standards. The lack of consistent public health standards for smoke damage has led to confusion, delays and uneven treatment for California homeowners. This is a health and safety issue first and foremost, and that needs to be led by experts who know the issues best, not the Department of Insurance.

But this is why I’m announcing actually today, the formation of a Smoke Claims and Remediation Task Force at my department, made up of public and environmental health experts, smoke remediation specialists and consumer advocates. I will charge this task force with identifying where standards are needed, and which state agencies must be involved in creating and enforcing these new standards. Californians deserve to return to homes that are safe, not to be left in the dark, or forced to clean up the toxic damage on their own.

We are taking action to pursue solutions, not chase headlines, to ensure fair, science-based and consistent approaches to smoke remediation and recovery going forward for every single Californian. As we are still yet to approach our fire season in California.

So, I also want to talk to you about how do we get here? When you’re in a crisis, it’s easy to focus on the wrong crisis, to focus on the motion instead of the actual action, to chase headlines instead of the actual change. That’s what we saw in the past. Too often, insurance commissioners treated problems as PR moments, putting out press releases instead of addressing the policies and the actual practices that created the crisis in the first place.

“We inherited outdated rules written in the age of pagers and payphones… Rules that ignore climate risk and deny the realities of a changing world”

Right now we have what I call armchair insurance commissioners. You have John Garamendi talks a great game, but failed to modernize the regulatory system when it mattered the most. Dave Jones now speaks from an ivory tower of academia, writes op eds about an uninsurable future as he plagiarizes my work on climate as his own. And when Steve Poizner was insurance commissioner, Allstate pulled out of writing new homeowners policies in California. He left to run for governor, and the company stayed away for nine years. That’s not leadership. That’s neglect.

California Insurance Commissioner Ricardo Lara at California Insurance Crisis, May 14, 2025. Photo by Ellie Appleby, Capitol Weekly

So when past commissioners had a chance to act, their responses stayed at the surface. Falling short of the urgency and complexity of the crisis we face today. And let me give you a clearer, more concrete example. For the past two years, I’ve actually called on Congress. Including now Congressmember John Garamendi, to support putting real cash into the hands of Californians to harden homes against wildfires. I wrote to the full California Democratic delegation not once, but twice, laying out exactly what we needed. Laying out that we needed more federal funds for home hardening grants, changes to the tax code, better forest management, and real support for real reforms… I think this oh, there we go…. And what did John Garamendi do in response? Absolutely nothing.

So don’t believe what he says or what quotes are in the paper, which is convenient, but actually what he does, which is nothing, not even lift a finger. And I’m here as the clean up guy. Past commissioners left the mess, and they have the gall to tell me that I actually missed a spot.

And it’s easy to scrutinize the Brown gay guy who now has to clean up their mess while they continue to fail up. I suppose it’s just another day in my life, and the status quo for guys like them. But we need now…. What we need now is more than just good, a good quote or a temporary fix. We need bold, lasting reform and the political courage to stick with it because it is the right thing to do.

“Under Prop 103, companies can legally raise your rates and still refuse to write your policy. That is the tragic irony, and it’s entirely legal”

We can’t settle on the same broken approaches that go that got us here in the first place. We inherited outdated rules written in the age of pagers and payphones, and some of you in this room have no idea what those are. [laughter] Rules that ignore climate risk and deny the realities of a changing world. The facts are this Prop 103 passed more than 30 years ago, was meant to protect consumers. And it did. But over the time, it has been outpaced by modern risk and exploited by delay and inaction.

I want to ask you a question, and it’s a real serious question, and I want any of you feel free to answer it. For the past 30 years, how many policies were insurance companies required to write in California? How many policies were required to write under the existing rules in California?

AUDIENCE: Zero.

RL: Exactly Zero. Nothing. Nada. Under Prop 103, companies can legally raise your rates and still refuse to write your policy. That is the tragic irony, and it’s entirely legal. We can’t keep playing by 20th century rules for a 21st century crisis. That’s what my strategy is all about: changing the rules of the game. And that’s what makes us different from any other state.

Colorado has fires. New Mexico has fires. Oklahoma has fires. Hell, Alaska has fires. Mexico… Minnesota currently has fires burning. They all allow insurance companies to use catastrophe modeling. They all allow insurance companies to pass through a cost of reinsurance. But nobody is doing what we are doing here in California.

If I sound angry, it’s because I am. And I’m sick and tired of being sick and tired, y’all. I’m 50 and I turned 50 on November 5th. You know what happened on November 5th? [laughter] I don’t have to remind you.

You know, I’m angry that insurance companies who kept not renewing policyholders year after year. And at every town hall, I heard it over and over and over again. I’ve seen grown men crying in front of my face with fear of what they were going to do next. I’m angry that wildfires grew and nobody required insurance companies to do something different, other than raising rates and forcing homeowners onto the FAIR plan. I’m angry that PR stunts from the past just passed as fundamental change or as action. You know, my anger is is motivating me now to make this fundamental change and to stick with it.

You know, now people are, you know, nitpicking at every part of our plan, but this is the first time we’ve done this. Give us some time to actually implement it, and then go ahead… and if we need to make changes, we’ll make change. But none of this has happened before, you know. Nobody’s, you know, nitpicking of the what’s been in the past.

“The system isn’t working and it hasn’t been working for decades. And that’s why we are building a new path forward”

Ultimately …and this is ultimately what I want, something that I never got. You know, I want the next insurance commissioner to start with the tools that they need to safeguard our market moving forward. I want them to be able to safeguard the integrity of our insurance market. The tools that no insurance commissioner gave me, and the tools that I wish I had.

So we’re not standing still. We are moving forward. And for the first time in decades, insurance companies are actually responding – surprise – not to fear, not by fear, but through a clear strategy. My strategy, the most ambitious reform in 30 years. And I’m going to keep screaming that until I’m blue in the face. And Californians are already seeing results. We’ve approved rate filings for every top homeowner insurance, insurer, with strict scrutiny. Farmers is reopening coverage lines. Allstate says it will return to the market when our strategy is complete. Mercury, CSAA, AAA they’re all staying and growing. That’s progress.

Now let’s talk about what I hear all the time, “Commissioner. Are rates going to skyrocket?”

And it’s a fair question. But I’m also going to tell you the truth. Under Prop 103 they already are. They already are. And without the reform, they’re going to keep rising. Guess what? With no guarantee of coverage, which is what nobody writes.

And here’s what [Consumer] Watchdog’s founder said last year. And I’m going to quote him. “Under Prop 103, anything they can justify in terms of an increase, they are allowed to get, and they can get every penny and a fair profit.”  And they get every penny. And so does [Consumer] Watchdog, who collects millions of dollars of fees passed on to consumers in their rates. And we don’t get any more coverage for it. And we get no coverage for it. Okay.

The system isn’t working and it hasn’t been working for decades. And that’s why we are building a new path forward. It’s unrealistic to promise that prices will go down overnight, but we are building a system where people can pay for coverage they can actually get. How about that? Not just be pushed onto the FAIR plan with higher premiums and limited protections.

 And here’s the bottom line insurance prices may rise, but they will be nowhere near the cost of being uninsurable, of losing your home or losing your community. That’s why our reforms include new catastrophe modeling tools that reward home hardening and resilience. Streamlined rate reviews with accountability. How about that? Expanded access for forward looking data that we’ve never had before. A modernization of the FAIR plan so it doesn’t keep growing as a shadow system.

We’re not just rebuilding a market. We’re rebuilding trust. We’re working to ensure that no Californian is left behind because of their zip code, their roof type or their wealth. We are really at a crossroads here. The question is not whether we move forward, it’s how we move forward together.

Do we let insurance companies dictate terms of recovery or resilience, or do we create a system that works for real people? This is not just about policies. It’s not about justice… This is about justice. It’s about protecting homes, building wealth, and creating the future where people are safer, stronger and more secure.

At the end of the day, I always tell my staff we owe it to the firefighter who defended that neighborhood, every senior who wants to retire in peace, every family who dreams of owning a home. We are building a modern insurance market for them. And you know what? This may be the hardest work that I do as an elected official, as an Insurance Commissioner, and I may be criticized and dragged through the mud for it and get my wig snatched, as the gay guys say, and dragged every… through every, you know, corner of this state. And I might end up being the most unelectable person, but I don’t care, because this is going to be the most meaningful work that I do for the state of California. Thank you.

CAPITOL WEEKLY: Do we have any questions for the commissioner? We have a few minutes. We went out there. Don’t all raise your hands…

RE: There’s a hand I see.

KARL SUSSMAN: Hi, Commissioner. I’m Karl Sussman. I have a general question regarding the California FAIR plan, where we all know that it’s growing and it shouldn’t be, and all those things that have to change. But there seems to be a major disconnect between how the insurance industry in general has been responding to the California fires and how they’re dealing with claims versus how the FAIR plan is. It seems like it’s a different animal all together. Is there any type of a task force or a plan that you’re considering doing to try and sort of rein in what’s going on over at the California FAIR plan?

RL: Yeah, I know we treat the FAIR plan exactly like any other insurance company. And we they have to do better. And, you know, we’ve been working with them and holding them accountable. Especially when it comes to these smoke… These smoke claims we’re meeting with them. We’ve been meeting with them since the fire started in LA. Every two weeks, to making sure not only are they financially solvent, ensuring that they’re meeting with customers, that they’re hiring folks, even since even before these fires, that they’re able to meet their obligations. And it’s a constant struggle. I’m not going to be I’m going to be honest with you.

They need to do better. Their governing board has to do better. Again, this is why I support having public members on their governing board. They need to have consumers on there. For so many years, the FAIR plan has benefited from kind of being in the shadows. They need to come out, and the FAIR plan has to modernize to meet this moment. But this is why it’s also important that through our through the modernization plan, you know, some of those coverage limits haven’t been modernized since the ‘70s. They kind of just been hiding there.

And so now with what we’ve done with modernizing the FAIR plan, with the guarantees for coverage, our plan is to get insurers back into these communities, simultaneously depopulate the FAIR plan, get those homes out of there as quickly as possible so that the FAIR plan can remain as the insurer of last resort for some of those commercial policies, those HOA’s, those summer camps that are currently still having a hard time finding coverage, you know, affordable housing developments that were that now are having a hard time. Again, the FAIR plan has to stay visible. They have to be able to meet those basic consumer demands that that their policyholders need.

And so we see that every town hall, even with these fires, there’s lines of people that are that are still, you know, that stay behind to ask for just basic customer service. So, you know, they have to do better. And we’re we’re constantly monitoring them.

BECCA HABEGGER: Hi, Commissioner Lara. Becca Habegger with ABC Ten News. Thank you so much for your time here. I am wondering, as we know, we try to contextualize and give information to our viewers, to your constituents about these big changes in the insurance industry. And often just the headline will come through for folks.

In light of that, I’m wondering if you could speak a little bit more about your decision regarding the State Farm emergency rate hike request. People might read the headline and go, “oh my gosh, more money, more of my money going to State Farm.” Can you speak directly to consumers about why this is necessary to help further stabilize California’s insurance marketplace?

RL: So the decision was not a was not was a tough decision. You know, State Farm is the largest carrier in the state. And the judge clearly decided and understood that a rate increase was important because for the stability of the largest insurer in the state and for the solvency of our market. And the decision was a tough one. We either allow for this increase to ensure that we keep, you know, State Farm customers covered, or else they lose their coverage and end up in the FAIR plan, further exacerbating the insurer of last resort. And so… but we’re going to have more importantly, we’re going to have a full rate hearing. So again, we get to the bottom of what’s really happening with State Farm’s financial condition, which is an issue that’s been going on throughout the entire country. So we’re going to continue to have due process and have an open and transparent hearing to really get down to what’s happening to the financial condition of State Farm.

HARRISON LINDER: Thank you for being here, Commissioner Lara. My name is Harrison. I’m with Leadingage California. We’re an association representing nonprofit providers of housing care and services for older adults. Around 400 of our members are affordable senior housing providers. And I’m wondering… there’s a lot of there’s been a lot of discussion today about a personal homeowner’s insurance policies. And I’m wondering what your department is doing regarding commercial property insurance, particularly, as you mentioned, affordable housing. Our members are seeing, like many 100% increases in insurance policies, which, you know, at least they can get the policies, but there’s still big problems there. So I’m wondering if you could speak on what your department is working on.

RL: Yeah, we’ve done a couple of things. So for commercial policies, one of the the kind of band aids immediately was to make sure they can access the FAIR plan. So we moved quickly so that they can access the insurer of last resort.

Additionally, we are working to, you know, bring down the…. elevate those coverage limits so they can have the coverage limits. That’s something we worked with with the overall association, the Affordable Housing Association, which is something they asked us for. And again, they’re big supporters of our strategy. We brought them in early so that they understand once we remove those homes, the traditional homes, out of the FAIR plan, they’ll have greater access. And once we stabilize the market overall, they’ll have greater access to the traditional market, which is the overall goal in stabilizing the market.

RE: We have one right here.

LEVI SUMAGAYSAY: Hi. Commissioner Levi from Calmatters. I wanted to go back to State Farm. And I know that over the weekend, you held a zoom with the Eaton Fire Survivors who are asking you to investigate how State Farm is handling claims. And I also know that you sent a letter to CEO of State Farm and that he’s responded. I’m just wondering if you are satisfied with his response. And also, at what point would you conduct a market conduct investigation of State Farm if you feel it’s necessary.

RL: Yeah. So I have staff reviewing… currently reviewing the letter where as you know, we’re reviewing we’re going to we’re obtaining the data from the survey from the Eaton Fire Survivors and the Palisade Survivors. So we’re going to be reviewing all that documentation. And my plan is to respond to the CEO’s letter as well. And then I’m going to be meeting with our market conduct team to see when…. first of all, I want them to review, have experts review that to see if that merits, you know, an investigation. And if we do that when it’s appropriate. I don’t want to stall any current claims process, but, you know, all that would be delicate and would, you know, we want to we want to look at that. Because I think we do want to make sure that if our team determines that it does merit investigation, that we move forward on that.

RE: I believe we have time for one more. Okay. Right here.

CHERYL YAKEY: Hi, Commissioner Lara, Cheryl Yakey from Nationwide. I’ve been a insurance regulatory attorney for a long time for several different organizations, and I’ve told many an Uber driver and anybody else who will listen, about insurance. Insurance departments have two basic obligations. One is consumer protection and the other is company solvency, which is really just consumer protection.

RL: Correct.

CY: Right. Anyway, so I’ll leave that there. My, actually, my question is, I don’t think I wrote quickly enough about your announcement about the smoke damage. Would you say that again? And who’s going to be a part of that?

RL: So we’ve announced this working group because at the end of the day, look, we’ve been trying for years to figure out who’s responsible for coming up with these statewide standards when it comes to smoke claims, smoke to… smoke remediation standards. And, you know, we’re the insurance experts. We don’t we’re not the health experts. There’s a hodgepodge of different standards there. And it doesn’t help insurers. It doesn’t help the regulators. And what we’re left with is the homeowners don’t understand when it’s safe to go in and out. And with without any proper guidelines, the insurer doesn’t know when to allow folks in and out or who’s going to pay.

California Insurance Commissioner Ricardo Lara at California Insurance Crisis, May 14, 2025. Photo by Ellie Appleby, Capitol Weekly

So we’re taking… again, we’re taking that responsibility within our department to gather experts and see who are the appropriate agencies that need to come together to really bring these recommendations. And you can follow up with our team, who are all seated, sitting behind you to to get you the information. So we’re announcing that today.

Because we actually got that from our meeting with the Eaton Fire and the Palisade Survivors. You know, we’ve we’ve seen this before in other fires. But again, this is really unprecedented given just the how big the fires in an urban setting have been in LA and Pasadena. We haven’t seen anything this big. And so there’s just so much misinformation going out there. So we need to get this going as quickly as possible.

RE: I’m told we actually have time for one more. I saw him right there. I knew there was one here in the middle somewhere.

ROBERTA GIORDANO: Thank you. Thank you so much for your time today. My name is Roberta and I live in Petaluma, Sonoma County. So, I really want to ask you this question as a resident, as a concerned citizen about this crisis that we’re experiencing,

So I understand… first of all, I appreciate that you have a tough job and you have tough decisions to make. And I understand your logic for why we want to prioritize availability. And therefore, in some cases, we need to approve rate hikes. At the same time, I, you know, just informing myself lately, and I’m noticing that this crisis is not just a California problem. It’s across the nation. Right?

RL: Global.

RG: It’s global, exactly. But speaking about the US, like, for example, if you look at Florida, like you have a complete different regulatory environment and we’re still having the same issue. We have insurance companies exiting the market, raising hikes, not renewing coverage. And so when I look at the big picture, at the national picture, I have a hard time understanding the logic of approving rate hikes as the long term solution, because it’s not… it’s just it’s not working. And so again, I, I’m just wondering how that’s factoring in for you, and your office because it’s just like we can’t just blame deregulation. We can’t just blame California stuff. Like there’s something more here.

And also the last piece that I want to say is that again, availability… is should be a priority. Thank you for making that a priority. And insurance companies are still making money. Like, I don’t know, there was a report that came out yesterday which I’m happy to send to your office later by Weis that shows that insurance companies are making a lot of revenue. And so I think the number.

RL: In which lines?

RG: Yeah, this is in relation to investments. It’s not quite underwriting, but still. Right. And so I guess like how how all of this factors in for a long term strategy.

RL: Right. So you’re absolutely right in terms of this is why when I told you like I was pissed off to see that, you know, the only solution that insurance companies come with is: raise rates. That’s the only solution, right? And we don’t invest in the mitigation piece, or in helping people understand that there’s wildfire science and that if you bring down the risk, you should get rewarded for that.

“We also have to look at land use, where we build, how we build. Right? And have those tough discussions”

And this is why we did the first in the nation mitigation discounts, so that you do the mitigation and you get a discount from your insurance policy. Now some might argue of course, because immediately they’re not big enough. Well, we just did those. Those were the first in the country. We’re going to evolve those. And we’re going to change regulation to how those evolve.

And why we’ve introduced legislation this year… By the way, the southern states have led Alabama, South Carolina, Louisiana… will give you up to $10,000 to fortify your roof. Louisiana just proved in an audit that says their homes that are fortified – Guess what? They maintain their value of their home and their insurance prices have decreased by 22%. Right? And they’ve worked with their insurance companies. God forbid the Insurance Commissioner for Louisiana, work with their insurance companies to get this program done. God forbid. But they did that.

And so we’re going to do that in California. And they’ve proven that that works. So we’re going to get that done. There’s other things and approaches like that that work on the mitigation piece… on the mitigation side. So there’s things that that work to bring the cost down.

The hurricanes have gone over Florida. They’ve done the exact same thing. So there’s things that we could do. There’s there’s carrots and sticks approaches as well that we want to do with fire, right? That we can do. So there’s things that Europe is investing in. There’s all these things.

We also have to look at land use, where we build, how we build. Right? And have those tough discussions. Right. What’s insurable and what’s not. And look at and look at technology. How… where are we most at risk at the state. How are we using new insurance products, parametric products, for example, community-wide inclusive insurance products. Right. How are we looking at new climate risk threats? Sea level rise, coastal flooding, atmospheric rivers, extreme heat? We have all of those issues to worry about, right.

And so those are all things that we’re looking at at the department now that we’ve never looked at before. So, these are all things that are that I get excited about, that we haven’t had a chance to really, you know, really focus on because of these, these wildfires.

And when we talk about profits for insurance companies, those are all different, separate lines. And you look at investments and all that that I have no control over. Right? And for my department, you know, I have actuaries and attorneys that just look at data, they look at data that’s coming in, and they’re not looking at this through politics. They’re looking at losses, data, number, money. And that’s how they’re determining, you know, the rate increases, right?

They’re not looking at you know, what lines of business what’s going on. They’re just looking at sheer numbers. And we have a very sophisticated, you know… insurance experts that look at all that. Right?

And I’ll go you can go into all that different but different states have different methods. But for here we have a very robust, you know, vetting process. And so… but but it is complicated. But I’ll tell you, there’s so many opportunities that we have been falling behind because we’ve not been able to use technology the way we should have to really get us to a point where we can track and be innovative, like we should have been. To, to help us meet this moment. And with that, I’ll shut up. Thank you.

RE: All right, well. Thank you. Insurance commissioner Lara. Okay. Give us about 15 minutes. We’ll be back at 1:00 with our third panel…

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