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California FAIR Plan premiums rise 29.1% ahead of commissioner race
The FAIR Plan, which insures about 696,562 dwelling and commercial policies as of June, faces growing exposure of $768 billion and a direct cash balance between $200 million and $400 million.
California’s state-run insurer of last resort, the FAIR Plan, will begin billing new and renewing customers an average 29.1% more on October 15, as voters choose the next insurance commissioner 19 days later, Insurance Business reports.
The FAIR Plan had 696,562 dwelling and commercial policies in force in June, up 157% from September 2022, and its exposure has climbed to $768 billion. Its direct cash balance is between $200 million and $400 million, so it relies on reinsurance, bonds, and assessments on member insurers to pay large catastrophes.
The October increase arrives as one commissioner candidate, Jane Kim, campaigns on changing how carriers are measured on claims, how the FAIR Plan is governed, and who carries wildfire risk in California. Kim, a former San Francisco supervisor, faces state Sen. Ben Allen in the general election, with CalMatters noting it is the first time since the office became elective that two Democrats met in the general.
Insurance Business also notes that for the FAIR Plan filing now supported by regulators, the plan sought 35.8% but received 29.1%, after earlier requests were cut in 2021 and 2023. The outlet adds that high wildfire-risk customers will take the biggest hits, and in some areas the wildfire portion of a premium could double, while the Department of Insurance says FAIR Plan growth is slowing with about 16,000 residential policies added in the first quarter of 2026.