California’s next insurance commissioner is promising a sweeping overhaul of the state’s embattled insurance industry, including a first-of-its-kind public disaster insurance program that would guarantee wildfire coverage for homeowners.
Jane Kim, a former San Francisco supervisor who defeated fellow Democrat Ben Allen in the race for insurance commissioner, declared victory Friday after campaigning on a plan to wrestle control of wildfire coverage away from private insurers and create a state-run, nonprofit alternative.
“We are here to say no more. We are going to make insurance work for us again,” Kim told supporters at her victory event.
“We are going to take on this $3-trillion industry because they have been profiting for way too long by raising our premiums, canceling our coverage and fighting our claims.”
Kim’s proposal, dubbed “Natural Disaster Insurance for All,” would separate wildfire coverage from traditional homeowners insurance policies and move it into a public, nonprofit fund.
The program would make wildfire insurance available to every current California homeowner, with premiums going toward providing coverage rather than executive compensation, shareholders or corporate advertising.
“The idea is that every current homeowner would be covered, and it would be a nonprofit fund where premiums don’t have to go to CEO pay, shareholders and Super Bowl ads,” Kim said.
The ambitious proposal comes as California grapples with an increasingly severe homeowners insurance crisis, with major carriers retreating from the state and residents struggling to find affordable coverage.
Seven of California’s largest property insurers have limited or paused new homeowners policies in the state, shrinking the private insurance marketplace as wildfire risks and rising costs continue to threaten coverage.
Homeowners insurance premiums have surged 84% since 2020, according to Stanford research, while enrollment in the state’s FAIR Plan — the insurer of last resort for homeowners unable to secure coverage through traditional companies — has nearly tripled.
The plan now covers roughly 5% of California homes, up from less than 2%, highlighting how the insurance crunch has spread beyond traditionally fire-prone communities and into the broader housing market.
Kim’s proposed public fund would effectively create a separate safety net for wildfire coverage, rather than forcing homeowners to rely entirely on private insurers.
But turning the proposal into reality could prove difficult, requiring cooperation from state lawmakers and community leaders to establish the program and determine how it would be funded and administered.
“This office is not a dictatorship. We’re going to have to work with community leaders across the state to make our big ideas possible,” Kim said.
Despite the hurdles, the incoming commissioner-elect said she expects to make progress on affordability and availability during her first year in office.
“I really believe we’re going to have some wins in our first year because there is a lot of work that can be done to make insurance more affordable, more available and more fair,” she said.
Kim, 49, secured approximately 53% of the vote to Allen’s 47%, according to the Associated Press. Her victory margin has grown to approximately 400,000 votes as additional ballots were tallied.
Allen called Kim to congratulate her on the victory Friday morning before she announced the results to supporters at San Francisco’s Dolores Park.
The win hands Kim responsibility for overseeing one of California’s most troubled industries at a time when homeowners are facing mounting premiums, canceled policies and fewer options for protecting their properties.
Her proposed nonprofit disaster insurance system would represent a major departure from the state’s traditional insurance model — and one of the most consequential tests of her incoming administration.
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