Commonwealth Club Of California Podcast

The California Department of Insurance regulates the insurance industry, with consumer protection as its core tenet. The insurance commissioner heads the Department of Insurance, managing more than 1,400 employees and overseeing 1,600 insurance companies. Ricardo Lara, the current commissioner, has faced increasingly challenging circumstances. Devastating wildfires in 2017, 2018, 2020, 2021 and 2025 have burned tens of thousands of homes; 7 of California’s 12 top insurers have pulled back from the California market since Lara took office in 2019. Meanwhile, the California FAIR Plan—the state-run public home insurance program designed to be the “insurer of last resort”—has more than doubled its policyholders between 2019 and 2023, due to the difficulty faced by homeowners of finding suitable coverage on the private market. As a result of the dramatic increase in policyholders, the FAIR Plan faced financial insolvency in 2023 and 2025, resulting in a $1 billion bailout from private insurers to cover claims. A