PLEASANTON, CA, Nov. 15th, 2022 -- California is where insurance markets go to die, outgoing IIABCal President Bob Teshima told member independent insurance agents and brokers at their annual Board of Directors installation last week in Burbank.
“The bureaucratic nightmare of the Department of Insurance rate approval process has made it impossible for insurance companies to get necessary rate changes,” Teshima said. “Worse yet, it forced carriers to reassess their commitment to California, their ability to write or renew business and in some cases, just throw in the towel and abandon us all together.”
Important Questions That Need Answers
Incoming President Jonathan Schreter said IIABCal understands the struggle independent insurance agents and brokers have experienced in finding proper and affordable coverages for their clients. However, Schreter said, what the agent trade association doesn’t understand is why California Insurance Commissioner Ricardo Lara and state lawmakers don’t do something about this on behalf of the state’s insurance consumers.
“The insurance commissioner has aggravated this crisis by willfully refusing to do his job to ensure rate adequacy and market availability,” Schreter told members. “We cannot allow this to continue.”
IIABCal Planning Legislation in 2023 To Address Market Woes
At the installation luncheon, Schreter announced that IIABCal has hired a nationally prominent insurance regulatory law firm, Eversheds Sutherland, to research and draft legislation that it intends to introduce in the 2023 California Legislature to restore a vibrant, competitive marketplace for the benefit of all California consumers.
“We know this fight will not be easy, or fast, or inexpensive,” Schreter said. “We will be taking this battle directly to the insurance commissioner, and consumer groups that profit from the status quo. We intend to work closely together with our insurance industry partners, and across other industries being harmed by the unavailability and unaffordability of property insurance.”