California Insurance Commissioner-Elect Jane Kim Proposes a Public Wildfire Insurance Program: Homeowner Premiums Up 84 Percent Since 2020, Earthquake Authority Estimated a Public Fund Would Need About $25 Billion Up Front
California - Jane Kim, who won the race to lead the California Department of Insurance, which oversees the state's $452 billion insurance market, ran on a proposal for a state-run, single-payer insurance program that would cover homeowners against wildfire damage.
Kim declared victory on Friday, November 6, over State Senator Ben Allen after reaching a nearly six-point lead. Under her idea, homeowners would automatically receive public coverage for wildfire-related losses, with payouts capped at roughly what it costs to rebuild a typical California home, while policyholders would keep their regular private insurance for other risks such as theft, burst pipes or an ordinary kitchen fire. The plan would ultimately need approval from both the California legislature and Governor-elect Xavier Becerra.
California's homeowners insurance premiums climbed 84 percent between December 2020 and March of this year, according to Stanford researchers. The share of California single-family homes covered by the FAIR Plan, the insurer of last resort, has nearly tripled over the same period, from under 2 percent to about 5 percent.
The California Earthquake Authority examined the potential costs of such a program this spring, estimating it would require roughly $25 billion up front to have a 75 percent chance of staying solvent for 20 years. Kim acknowledged there is plenty of uncertainty surrounding the plan, saying it is a concept and a proposal and could look quite different by the time it works its way through the process.
(Source: Heatmap)
Source: Heatmap
Published by GSM · USA (original Chinese edition)
Photo: 图：Jane Kim（资料图，2017年摄于旧金山）。照片：CC BY-SA 4.0，经 Wikimedia Commons。 / Photo: Jane Kim (file photo, San Francisco, 2017). Photo: CC BY-SA 4.0, via Wikimedia Commons.
