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Bloomberg urges lower FAIR Plan broker commissions in California
FAIR Plan exposure grew to about $768 billion by June 2026, while policy counts rose to more than 675,000, according to KQED data cited by Bloomberg.
California’s FAIR Plan, the state-created insurer of last resort, should pay insurance agents lower commissions or none at all, Bloomberg’s editorial board said in a push to overhaul how the program is priced and who can buy into it, Insurance Business reports.
Bloomberg’s editorial frames the recommendation as part of a broader response to the California home insurance crisis. The FAIR Plan was built in 1968 as a temporary stopgap, but it is now the only fire coverage many homeowners can get, and growth has accelerated sharply.
Data cited via KQED shows total exposure climbed from roughly $220 billion in September 2022 to about $768 billion by June 2026, an increase of about 250%. Policy counts rose from about 271,000 in 2022 to more than 675,000, and in some high-risk ZIP codes, nearly half of homes are insured through the plan rather than the standard market.
Bloomberg’s editorial also highlights the affordability strain, including findings from Stanford’s Climate and Energy Policy Program that average homeowner premiums rose 84% from late 2020 to March 2026, and deductibles increased from about $1,813 to $2,553. It cites McKinsey estimates of a $1.35 trillion to $2 trillion coverage shortfall statewide, including FAIR Plan exposure, and notes that closing the gap would require $8 billion to $10 billion in additional annual premium that would likely land on homeowners.