Weekly Roundup: New Investigation in California, Financial Scrutiny for Insurers, and Scattershot Solutions
FOR IMMEDIATE RELEASE
June 13, 2025
Contact: contact@insurancefairnessproject.com
Weekly Roundup: New Investigation in California, Financial Scrutiny for Insurers, and Scattershot Solutions
Each week, the Insurance Fairness Project highlights the latest developments in the national climate-driven property insurance crisis.
1/ CALIFORNIA INVESTIGATES STATE FARM. Yesterday, California Insurance Commissioner Lara announced an investigation into State Farm, following months of sustained demands from fire survivors.
The San Francisco Chronicle: California investigates State Farm insurance claims handling after L.A. fire complaints
“For months, survivors of the Los Angeles wildfires have been campaigning for Lara to investigate State Farm. At first, they wrote letters and ran an ad campaign calling on Lara to deny State Farm’s request to raise rates until such an investigation was conducted.”
“We’re glad the commissioner is finally taking this seriously. Because, the truth is, you can’t rate hike your way out of this,” Sierra Kos, co-founder and co-executive director at advocacy group Extreme Weather Survivors, said in a statement. “This investigation is a win for every community that spoke out and demanded accountability.”
Meanwhile, the Center for Climate Integrity released new analysis breaking down what State Farm’s approved and pending rate hikes will cost California policyholders.
NBC Bay Area: Video: State Farm’s emergency rate hike
2/ BIGGER PROFITS WHILE DENYING CLAIMS. The insurance crisis keeps escalating, with new reports of insurers (and hedge funds) raking in profits, and denying claims. And some new insurers entering the market aren’t financially stable. Meanwhile, hedge funds are getting into the action.
“Hedge funds are facing pushback in California as their bets tied to insurance claims stemming from the Los Angeles wildfires are attacked as unethical. [. . .] [The California Earthquake Authority… has described such transactions as “opportunistic, profit-driven investment speculation,” and says it’s planning to take on “hedge funds and other speculators” that it claims “are actively seeking to profit from California’s devastating wildfire catastrophes.”
Climate & Capital Media: Building big business from climate-fueled disasters
“Despite a $182 billion price tag for losses due to weather-related disasters in the US last year, property and casualty insurers reported a near-doubling of their earnings over 2023. After-tax profits of the industry totaled $171 billion last year, compared to $92 billion the previous year. Last year was also an especially good one for home insurers, who booked the first aggregate underwriting profit on home insurance since 2019.”
Houston Chronicle: Texas homeowner insurance claims closed after major storms
3/ Politicians continue to feel the pressure from their constituents to address the crisis. Some are offering more productive solutions than others.
WUSF: Congresswoman Frederica Wilson pitches legislation to alleviate national property insurance crisis
Longtime U.S. Rep. Frederica Wilson introduced a bill in Congress this week to help stabilize the troubled property insurance market and help homeowners nationwide, especially in Florida, with a growing and costly pocketbook issue. [. . .] "Everywhere I go in Florida, doesn't matter what parts folks are from, people are concerned about our property insurance crisis," said Wilson in a statement. "And with hurricane season just starting, causing a rush through the hearts of South Florida families, the fear of the rising costs of homeowner's insurance is real and tangible for folks."
Louisiana Illuminator: Lawmakers reject insurance bills that had direct relief for Louisiana homeowners
“With just two days left to write new laws in the 2025 legislative session, Louisiana lawmakers have halted the only two insurance proposals this year that critics said would have directly provided relief to homeowners struggling to afford skyrocketing rates.
Senate Bill 235 and House Bill 356 drew wide public interest as homeowners wait for state officials to rein in the coverage costs. Average homeowner insurance premiums in Louisiana are the eighth highest in the nation, according to the industry news site Insure.com.”
Helena Independent Record: Montana governor addresses rising home insurance costs amid climate threats
Resources
Insurance Fairness Project: Polling – Voters Want Their Government to Address the Property Insurance Crisis
Public Citizen and the Revolving Door Project: Mapping the Home Insurance Crisis
Consumer Federation of America: Overburdened: The Dramatic Increase in Homeowners Insurance Premiums and its Impacts on American Homeowners
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.###
The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
