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Farmers Insurance commits to expanding wildfire-distressed commercial business in CA
The California filing proposes a 15% average rate increase and includes a volume commitment to write more than 1,500 new policies in wildfire distressed areas over the next two years.
Farmers Insurance has filed a California business insurance rating plan that points brokers back to accounts previously turned away by the standard market, as the insurer of last resort has seen its commercial exposure climb sharply. The filing pairs an overall proposed 15% average increase with a specific commitment to expand new commercial business in wildfire distressed areas.
According to Insurance Business, the plan targets habitational risks such as apartments, condominiums and planned unit development communities, plus auto service shops and a range of commercial segments including commercial real estate, retail, office, service and wholesale. It proposes an effective date of February 1, 2027 and is framed around elements of Insurance Commissioner Ricardo Lara's Sustainable Insurance Strategy.
A key distinction for brokers is that Farmers' proposal is tied to a quantified volume commitment, not only a pricing permission. Farmers says it will write more than 1,500 new business owner and business property insurance policies in wildfire distressed areas over the next two years, giving brokers a concrete basis to approach the carrier for clients in those locations.
The filing arrives as exposure tied to California's FAIR Plan has grown, underscoring the limited options some businesses have faced. Insurance Business reported in January 2026 that FAIR Plan commercial exposure rose 82% to about $49.5 billion through the end of September 2025, while residential exposure grew 50% to roughly $645 billion over the same period.