Candidates running for California insurance commissioner in November are centering their campaigns on one key phrase: stabilizing insurance premiums. But their proposed solutions vary widely.
The Korea Daily recently reviewed policy proposals from five major candidates in the race, including former San Francisco Supervisor Jane Kim. Their platforms address a range of issues, including state-run disaster insurance, expanding insurance availability by reducing insurers’ risk exposure, and ensuring policyholders receive fair compensation when they file claims.
Kim, the only Korean American among the Democratic candidates, has made public disaster insurance the centerpiece of her campaign.
“This is not about completely replacing private insurance,” Kim said. “It is a split model in which the government would take responsibility only for major disaster risks, such as wildfires and floods. Private insurers would continue to handle standard homeowners insurance, while the public sector would manage disaster risk and reinvest premiums into prevention infrastructure.”
In an exclusive interview with The Korea Daily in February, Kim also emphasized that direct government management of disaster insurance could help reduce delays in claim payments after major disasters.
Patrick Wolff, a financial analyst and fellow Democratic candidate from San Francisco, has proposed creating a “report card” system to evaluate how well insurance companies handle claims. The system would allow consumers to use those ratings when choosing an insurer. Wolff has also said California should consider insurance pricing models based on driving behavior as a way to reduce premium burdens.
California Sen. Ben Allen, a Democrat representing the 24th District, has proposed strengthening the Department of Insurance and developing a comprehensive risk management strategy. In response to growing complaints over post-wildfire claim assistance, Allen said he would expand staffing for consumer support and create a dedicated consumer protection position. He also plans to promote structural risk reduction measures, including state-backed loans for home hardening and limits on new development in high-risk areas.
Steve Bradford, a Democratic candidate and former California state senator who also served as an executive at Southern California Edison, has proposed a public-private partnership model in which insurers and the state would share risk. His plan is aimed at discouraging insurance companies from withdrawing from the California market. Bradford has also proposed programs to support voluntary relocation for residents in high-risk areas. He said funding could come from expanding existing investment programs involving the insurance industry.
Merritt Farren, the only Republican among the five candidates, is campaigning on a proposed “CAL Reinsure” program, under which the state would act as a reinsurer for insurance companies. Farren, a former executive at Amazon and Disney, said the program would collect fees from insurers to build a fund that would reduce industry risk and expand insurance availability. He also supports easing regulations that he says prevent the introduction of new insurance products, including premium plans that promise faster claim payments.
California’s insurance commissioner became an elected position in 1991 after voters approved Proposition 103 in 1988. Current Insurance Commissioner Ricardo Lara is barred from running again because of term limits. The primary election for insurance commissioner will be held on June 2, with the top two vote-getters advancing to the general election.
