New CA Proposal Threatens Public Oversight of Insurance Rate Hikes
FOR IMMEDIATE RELEASE
October 14, 2025
Contact: contact@insurancefairnessproject.com
New CA Proposal Threatens Public Oversight of Insurance Rate Hikes
October 14, 2025 — A new proposal by California Insurance Commissioner Ricardo Lara would make it harder for consumer groups to challenge insurance rate increases, leaving homeowners underrepresented.
The proposal would impose stricter funding rules for consumer protection groups that act as “intervenors” in the process, limiting the attorneys and experts they can be reimbursed for, and adding new eligibility requirements. Advocates warn these changes would weaken public oversight, giving insurers more leeway to raise rates without accountability and reducing protections for Californians.
"Californians need stronger protections, not fewer opportunities to hold insurers accountable," said Lizzy Price, spokesperson for the Insurance Fairness Project. "Consumer groups play a critical role in public oversight, preventing corruption, and advocating for homeowners against predatory practices. Everyday homeowners deserve a say in the process. Insurance is already an opaque industry, and this proposal would shroud even more of the decision-making process in secrecy.”
“Lara has no reason to change the intervenor compensation standard except to get insurance companies unjustified rate hikes quicker and as revenge against his critics,” stated Jamie Court, president of Consumer Watchdog.
Interventions by consumer advocates have produced tangible benefits. For example, when Consumer Watchdog challenged State Farm General’s emergency 22% rate hike request following January wildfires, the insurer reduced its request to 17%, saving consumers $166 million. Between January 2022 and October 2023, consumer interventions helped ensure insurers only received 62% of requested home insurance rate increases and 71% of auto insurance rate increases, protecting millions of Californians from unjustified costs.
“Attacking California’s public intervenor program is a short-sighted attempt to scapegoat consumer advocates for what is clearly a national crisis,” stated Carly Fabian, senior insurance policy advocate at Public Citizen.
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