HomeInsuranceProposal for faster insurance rate review sparks debate in Orinda

Proposal for faster insurance rate review sparks debate in Orinda

(KRON) — With homeowners across the Bay Area and the state being dropped by insurance companies mostly due to fire risk, Gov. Gavin Newsom has proposed speeding up the review of insurance companies’ rate hike requests to just 60 days.

Time is important in terms of rate decision-making, and that’s what we’re promoting as a short-term step. We will continue to promote the larger package in partnership with the insurance commissioner,” Newsom continued, “This is an important element of what needs to be a multi-prong fix so we can get back to doing business in California.”

Rex Frazier is with the Personal Insurance Federation of California, which represents large auto and home insurance companies around the state.

“Oftentimes, it takes months and months before an insurance company even knows where it stands with the state. Under this proposal, the state has 60 days and every 30 days thereafter, they would have to declare where they stand on a rate filing that’s accountability that’s good for everyone,” Frasier said.

The governor has proposed a plan that is not going to get homeowners access to more coverage at an affordable price. But Carmen Balber with the group Consumer Watchdog thinks it gives away too much.

“What the governor has proposed will tie the hands of the insurance commissioner in reviewing rate hikes and cut public participants out of the process. And that is guaranteed to lead to higher unjustified rates for California homeowners,” Balber said.

Now, it will be up to state legislators to decide whether to include the governor’s insurance proposal as it stands or change it when approving this year’s budget.

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