Latest of the Fair Plan

In case anyone is interested, here is a link to the percentage of State Farm policies non-renewed by zip code. Boulder Creek will have 20.7% of the policies dropped whereas 95033 is having 65.2% non-renewed. See link for the complete list:

The California insurance assembly meeting had a 1 year FAIR plan update on March 13, 2024 presented by the director of the FAIR plan and the 2 hour presentation can be found on the link below. The actual meeting starts at 31 minutes into the video.

The meeting is close to 2 hours so I’ve posted some observations:
-The director of the FAIR plan, Victoria Roach, is an articulate speaker and does a great job explaining the challenges they are experiencing.
-The FAIR plan is to maintain actuarial sound financial ratios but is not at this time. To maintain this ratio, they needed a 70% rate increase in 2021, they asked for a 48% but were only given a 15% increase. It took 25 months to process the rate increase request. The reason that only a small increase(relative to what they wanted) was given is that Reinsurance costs, which have risen greatly in the past several years, can not be used to justify the rate increase. They plan to submit their latest increase request after policy is changed to allow reinsurance to be factored in. In other wards, expect some large FAIR policy cost increases in the future.