CAL FIRE defensible space inspector discussing with a resident ways they can improve their brush clearance around their home.

September 1, 2026 - SACRAMENTO, Calif. — Insurance Commissioner Ricardo Lara issued the following statement after the Governor and legislative leaders announced compromise wildfire legislation. The SB 492 agreement supports the momentum of the Sustainable Insurance Strategy, Commissioner Lara’s comprehensive reform intended to increase insurance options for consumers:

Related: PG&E on SB 492-Wildfire Bill, Says, “The Bill Does Not Adequately Address The Financing Risks Created By California's Current Wildfire Liability Framework”

Governor Newsom On SB-492 Wildfire Bill, Says It Is A Compromise To Address Wildfire Risk, Support Fire Survivors, And Create Stronger Accountability

“California continues to face the difficult challenge of protecting wildfire survivors, reducing wildfire risk, maintaining affordable utility service, and ensuring families can obtain the insurance coverage they need. Those goals are interconnected, and lasting solutions require thoughtful collaboration across government, industry, and communities statewide.

“I appreciate the Governor, legislative leaders, and stakeholders who worked diligently to reach a compromise reflected in SB 492. Throughout this process, my Department contributed its expertise to help evaluate how proposed reforms would ultimately affect consumers, wildfire survivors, insurance market stability, and affordability.

“This year’s compromise reflects the complexity of the challenges before us. It advances important efforts to strengthen wildfire preparedness, improve community resilience, increase accountability, and support wildfire survivors, while ensuring more time is taken to think thoughtfully and critically in order to ensure reliable, clean, affordable energy by utilities and increased insurance options offered by more insurance carriers in our state’s wildfire distressed regions.

“Several provisions included in this legislation build upon years of leadership by the Department of Insurance in partnership with our many partners to better align wildfire mitigation, risk transparency, accountability, preparedness, and insurance availability. These investments recognize an important reality: California’s long-term insurance future depends not only on how we respond to disasters, but on how effectively we reduce and manage risk before natural disasters occur.

“When I took office in 2019, California’s insurance market was facing mounting climate-driven losses, shrinking insurer participation, and growing challenges for homeowners and businessowners seeking coverage. Together, with the Governor and the Legislature, we embarked on the most significant modernization of California’s insurance framework in decades through my Sustainable Insurance Strategy.

“Today, we are beginning to see meaningful signs of progress. Insurers are making commitments to write more business in California, coverage options are expanding, the FAIR Plan’s growth is shrinking day by day, and our state’s insurance market is showing early signs of stabilization after years of deterioration. Protecting that momentum is critically important for consumers and our economy overall.

“The work before us has never been about protecting insurance companies or utilities. It has always been about protecting Californians. Every policy decision must be measured against a simple question: Will it help consumers by improving availability, affordability, resilience, and recovery?

“SB 492 represents meaningful progress toward those goals. It demonstrates that California can bring together diverse stakeholders, navigate competing interests, and move forward with practical, meaningful solutions that support consumers while strengthening our state’s resilience.

“As I enter the final months of my tenure, I am proud of how far California has come. We are no longer simply reacting to crises. We are building a more modern and resilient framework capable of addressing the realities of climate risk while protecting consumers and strengthening our communities. Although the work is far from finished, this compromise is an important step forward for wildfire survivors, for California consumers, and for the long-term stability of our state.”

Source: CA. Dept. of Ins.