As Insurers Ditch California, Gov. Newsom Backs Speeding Up Rate Reviews

Gov. Gavin Newsom this week released a bill that could help quicken insurance rate reviews in California, something insurers in the state have criticized. After several years of major wildfires and flooding, California insurers have been prevented from adequately raising rates by regulations adopted in 1988 under Proposition 103.   The New York-based Insurance Information Institute said insurers haven’t been able to charge adequate premiums since  Proposition 103 established what’s known as the intervenor process, in which state regulators review all proposed rate increases of 7 percent or greater, in some cases taking years. Under the governor’s bill released May 28, rate review requests could be subject to a quicker timeline. The bill would revise the insurance code and give the Insurance Department an initial 60 days to review requests for rate increases by insurers, with options for two 30-day extensions. Currently the department has 60 days to review rate filings without a hearing and 180 days with a hearing....