Experts Expound: Rating Ricardo Lara

Experts Expound has been on hiatus for a while, but our panel is back with some new names and more questions to answer. So here we go…

The California insurance market is in flux. On a scale of one to 10, how do you rate Insurance Commissioner Ricardo Lara’s handling of this situation so far?

“My answer would be a 5. He’s done just enough to keep the office afloat. With major insurance companies announcing no new home and car policies (or worse, no policies in CA at all) I didn’t expect an immediate turnaround by Ricardo, but I think by now he’d be much more pro-active with a response and a proposed strong fix. So far, nothing much has been announced or even proposed. People are really suffering.”

“5.”

“I would rate Lara as about a 3 or 4. He’s been largely the Invisible Man as insurance commissioner. Compare his visibility on insurance issues with that of AG Bonta on a wide range of legal matters. I have no idea what he’s going. Part of the job of the IC is to use the bully pulpit to focus attention on and browbeat the bad actors in the industry. It’s more like he’s sitting in the back of the church.”

“He may be making some amazing progress but there’s been no comms — did the tree fall in the forest?”

“I’d have to respond “unsure” w/out a #. Completely aware of the current market situation but Lara’s office has not made a suitable effort to define what tactics have been made to remedy the situation. He may be making some amazing progress but there’s been no comms — did the tree fall in the forest?”

“7.”

“5. Living in an area in which wildfires are a threat, having cost-effective insurance is getting harder. The score reflects the negative that my private insurer (along with many others) dropped our coverage, but it also reflects the positive that the state has a back-up program. So a score right down the middle.”

“California has lost State Farm and Allstate. The insurance companies are showing their confidence in Lara by pulling back the availability of their coverage, not writing new policies, and reducing their services. Thanks to the lack of confidence in the California market and the Insurance Commissioner, Jake from State Farm is everywhere but here.”

“Ricardo rates about a three. He enjoys holding public office, but he has never mastered the subject area of this post, nor has he shown a real interest in doing so.  He is a friendly guy, but he is in way over his head as Insurance Commissioner.”

“He says the insurance market is “very thriving.” Can’t fix a problem until you admit it exists. One out of ten.”

“Lara is between a rock and a hard place. He knows rates need to increase, but doesn’t want the wrath of the electorate because his political future is on the line. The situation is not unique to California, but we’re the only state with the straight jacket of Prop 103 that is not allowing the needed changes in the marketplace.”

“I rank Lara a 5. I don’t think Lara has helped Californians with their insurance issues. He could, but Dave Jones would have done a great job.”

“I think you’re going to get some low scores, so I will balance it out with an 8.  And I think the question needs some context. As an example, what’s happening in CA is happening even worse in Florida: Farmers Insurance Retreat From Florida Signals Crisis With No Easy Fix – The New York Times (nytimes.com). Climate change, fires, coastal erosion, drought, potential flooding, earthquakes, and all kinds of other things impact CA (and FL) more than other states, so the trouble regulating insurance in CA is much greater than at least 48 other states, on par with FL and maybe Texas. The IC is handed a million risks associated with living in CA, and in charge of overseeing an industry meant to absorb those risks. That’s a shitty job in the best circumstances!”

“He gets a 2 from me but only because he hasn’t completely tanked the market from ineptitude and inaction – yet. It’s where it’s at because of his inaction and completely dysfunctional department and fear of any meaningful action. I suspect he’ll hit a 1 before the end of his term because he is so afraid of Consumer Watchdog and thinks he can charm his way out of this. This is one of few political jobs you can’t just sit back, refuse to act and still get a promotion. And it’s one of the few where the actions of the elected have direct, expensive and lifelong consequences. And he treats it all like an inconvenience and a cocktail party.”

The people from whom we solicited opinions: Elizabeth Ashford, Hector Barajas, A.G. Block, Barry Brokaw, Samantha Corbin, Jon Costantino, Richard Costigan, Tim Foster, Rex Frazier, John Howard, Fiona Hutton, Gale Kaufman, Steven Maviglio, Mike MeCey, Paul Mitchell, Barbara O’Connor, Kassy Perry, Garry South, Paula Treat, Bill Wong and Daniel Zingale