2019 Getty Fire
Credit: LA County Fire Department Air-Ops

July 23, 2025 -  SACRAMENTO, Calif.— Insurance Commissioner Ricardo Lara released a statement following a judge’s dismissal of Consumer Watchdog’s unfounded claims aimed at undermining the California insurance market at a crucial time when homeowners, renters, businesses, and non-profits need access to more insurance, not less.

“The judge’s ruling affirms my authority under Prop. 103 to protect consumers and stabilize market conditions through my Sustainable Insurance Strategy. Consumer Watchdog’s lawsuit fails to address the state’s insurance crisis and is merely another attempt to create chaos in an already complex situation. I’m pleased the judge saw through their charade, which only harms homeowners, small businesses, and non-profits that need better access to insurance options. Consumer Watchdog — which itself admits it has no members — has not offered any viable solutions to our state’s insurance crisis and continues to undermine my efforts to restore our insurance market. They also continue to profit under Prop. 103 in the millions through higher rates on policyholders when insurance companies seek justified rates from my Department. I will continue to expose their hypocrisy, and make the difficult decisions needed to stabilize our market and bring insurance options back to Californians.”

Commissioner Lara continues to take action to stabilize market conditions as insurance companies had further withdrawn from writing business, especially in wildfire distressed areas, due to concerns about an expanding FAIR Plan and rising costs, which a Bloomberg news story described as a “hidden crisis.” His proactive measures have helped prevent further deterioration of the insurance market following the devastating wildfires in Los Angeles, when the FAIR Plan sought his approval for additional funds earlier this year to continue paying consumer claims fairly, fully, and quickly.
Source: CA. Dept. of Ins.