CSAC Quoted in Wildfire Insurance Article
September 3, 2020
CSAC’s Executive Director Graham Knaus was recently quoted in a New York Times article regarding the issue of homeowner’s insurance in California. The article was written by Christopher Flavelle, who specializes in reporting on the impacts of climate change on financial instruments including bonds, mortgages, home prices and insurance.
The article focused on the status of California’s insurance market and the impact that climate change has had on the availability of homeowners insurance in the wildland urban interface (WUI). Flavelle was interested in CSAC’s support of AB 2167 (Daly) which would have created an Insurance Market Assistance Plan program in California to allow the Insurance Commissioner to approve reasonable rates in high fire threat counties based on insurer solvency, mitigation efforts, and other factors.
CSAC supported the bill as a reasonable market based solution to help increase insurance availability, while at the same time protecting California consumers in high fire threat areas. AB 2167 was supported by a variety of stakeholders, but was significantly scaled down in Senate Appropriations to become a two year study bill. CSAC will continue to monitor efforts that attempt to improve the availability of insurance in the WUI.