SACRAMENTO, Calif. — The California insurance market could possibly be changing as a new ballot initiative, filed on Monday, looks to repeal Proposition 103.

The California Insurance Market Reform Act of 2026 was submitted as a ballot measure to make changes to the existing rules outlined in Proposition 103. 

It was originally passed by voters in 1988, and its goal was to keep insurance costs low and hold insurance companies accountable. With this proposal, it would include major provisions, like making the insurance commissioner an appointed position, rather than elected.

“The insurance commissioner would be appointed by the governor and still have to be approved by the Senate, and they have to have at least 10 years of insurance experience,” said insurance expert Karl Susman.

Other changes would include requiring wildfire mapping to be updated every three years, protecting consumers and restoring market competition, and creating a modern process when it comes to reinsurance costs and mitigation credits.

“It strengthens the part of Proposition 103 with regard to timelines — timeline within Proposition 103 for when an insurance company wants to make a change to a product, whether it be a discount or a guideline for writing or whatever it is, is supposed to be 60 days,” said Susman.

Harvey Rosenfield is the author of Prop 103 and founder of Consumer Watchdog. He believes there is no serious campaign behind this ballot measure.

“The last thing we need is freeing the insurance companies to get unlimited rate increases,” said Rosenfield.

He adds that Prop 103 is working, and it needs to be enforced to protect consumers.

“It requires insurance companies to open up their books and justify their rates before they take effect. That means they’re entitled to any rate that they can show they need, they have to prove it, but they’re entitled to it if they can prove it,” said Rosenfield.

This ballot initiative comes after Commissioner Ricardo Lara tried to implement change through the Sustainable Insurance Strategy. 

A spokesperson for Lara provided ABC10 with this statement:

“Commissioner Lara is focused on getting Californians coverage, especially where it’s needed most. Prop 103 guarantees consumers’ right to hold all parties in the rate making process accountable. He is opposed to any effort to take away the rights consumers deserve.”

Because this is a new ballot initiative, comments are being accepted through September 10.

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