More Options For Homeowners Coverage On Multiple Fronts According To New California Insurance Department Data

The California Department of Insurance is highlighting new data showing the steepest decline in FAIR Plan growth in four years — a key sign that reforms are expanding traditional market options for homeowners and reducing reliance on the state's insurer of last resort. Between July and Sept. 2026, the FAIR Plan added only 2,200 new policies, the slowest growth since 2022.

New data also shows that insurance company filings under review have dropped to their lowest level in decades, and review timelines have improved significantly. These improvements are supported by the Department's new public-facing rate review transparency tools.

The Department has issued a video briefing on Commissioner Lara's Sustainable Insurance Strategy, part of a briefing for insurance agents and brokers giving an update on insurer commitments, progress on risk modeling reforms, and expanded options for homeowners. Deputy Commissioner for Rate Regulation Ken Allen and Deputy Commissioner for Communications and Public Relations Michael Soller gave an overview of a new public-facing rate review process that, for the first time, shows Californians exactly how much money the Department's rate decisions save them in real time. This new transparency framework allows consumers, stakeholders, policymakers, and journalists to see in real time how proposed rates change as the Department conducts its review, strengthening public trust and ensuring accountability in the process.

Key indicators of market improvements for homeowners include:

Steep decline in FAIR Plan growth: New FAIR Plan policies fell to their lowest level in four years, showing reduced reliance on the FAIR Plan as more Californians secure coverage in the traditional market.

New options for consumers: Twelve homeowners insurance companies — including 7 of the 10 largest — have committed to staying and growing in California, expanding access to policies statewide.

Rate review improvements: Filings under review have dropped to historic lows, and review timelines are faster, allowing insurers to bring new products to consumers more quickly.

"We are seeing real measurable progress toward a stable California insurance market that meets consumers' coverage needs—driven by my Department's reforms," said Lara. "The FAIR Plan is slowing, insurance companies are filing and moving through our review process more efficiently, and we are opening the rate review process to a level of transparency that Californians have never had before. These steps, among many more, reflect our continued commitment to giving every Californian access to coverage they need on their terms."

The slowdown in FAIR Plan growth, combined with increased insurer participation and improved regulatory timelines, demonstrates that California's insurance reforms are working. These changes are restoring balance to the market and improving access to coverage for homeowners. The Department will continue collecting multiple data points to monitor this trend and enforcing new regulations.

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