California Proposes First Public Wildfire Catastrophe Model

California, September 27, 2025

News Summary

California Governor Gavin Newsom is reviewing Senate Bill 429, aiming to establish the nation’s first public wildfire catastrophe model. The bill requires insurers with over $10 million in premiums to submit fire risk data and proposes a Wildfire Safety and Risk Mitigation Program to fund research for developing the model. This initiative seeks to enhance wildfire risk assessment and improve insurance regulations in the state as wildfires continue to pose significant challenges. While supported by some, concerns regarding transparency have been raised by consumer advocates.

California Governor Gavin Newsom is currently reviewing Senate Bill 429, which aims to establish the nation’s first public wildfire catastrophe model. The proposed legislation seeks to expand the state’s approach to wildfire risk assessment and insurance regulation, a necessity as increasingly severe wildfires plague the state.

The law mandates that insurers with over $10 million in written California premiums must submit fire risk data for their insured residential properties. The California insurance commissioner is responsible for making this fire risk information publicly available.

Senate Bill 429 proposes the creation of a Wildfire Safety and Risk Mitigation Program within the California Department of Insurance. This program would fund research aimed at developing the public wildfire catastrophe model. The model, along with the research, will be used to formulate risk mitigation strategies, inform actuarial analyses, and support oversight of insurance rates.

This bill follows California’s recent initiatives to enhance its wildfire risk modeling framework. Earlier in July, the California Department of Insurance certified the Verisk Wildfire Model as the first approved model for insurance rate-setting. This model is already employed in other states and was developed by the Extreme Event Solutions unit of Verisk.

The American Property Casualty Insurance Association (APCIA) has expressed support for the legislation, asserting that advanced catastrophe models are crucial for stabilizing California’s insurance market while improving access to coverage. However, consumer advocates, such as Consumer Watchdog, have voiced concerns regarding the transparency and accountability of the new regulations. They have particularly pointed out the use of climate model algorithms by insurers.

State Senator Dave Cortese has highlighted the significance of the public model. He believes it will provide lawmakers with essential data to address questions from constituents about insurance rates—specifically, the reasons behind rate increases and geographical discrepancies in premiums. Insurance Commissioner Ricardo Lara has also endorsed the public wildfire model, suggesting it will enhance insurance affordability and offer critical insights necessary for reducing wildfire risks.

The passage of Senate Bill 429 is part of a broader legislative endeavor to tackle wildfire risks and the challenges faced by the insurance sector, and it has experienced minimal opposition throughout the legislative process. If implemented, the model is expected to improve transparency in wildfire risk assessment, potentially serving as a check on the models utilized by private insurers and the responses from the Department of Insurance.

Nonetheless, consumer advocates have criticized existing strategies for their lack of transparency. They have called for adjustments to ensure that mitigation efforts are appropriately reflected in insurance pricing, citing successful measures executed in Colorado. It remains important to note that the passage of the bill does not guarantee the model’s creation or that it will yield findings distinct from the private models currently employed by insurers.

Key Features of Senate Bill 429

• Establishment of the first public wildfire catastrophe model.
• Mandatory submission of fire risk data by major insurers.
• Funding for research through a Wildfire Safety and Risk Mitigation Program.
• Support from insurance industry executives and legislators.
• Focus on transparency and public accessibility of wildfire risk information.

Frequently Asked Questions

Deeper Dive: News & Info About This Topic

• Insurance Business: California Lawmakers Considering Public Wildfire Model
• Digital Insurance: California Moves to Build Public Wildfire Model
• Verisk: Wildfire Catastrophe Model Review Process
• Wikipedia: Wildfire
• Insurance Journal: California Approves First Wildfire Catastrophe Model
• Google Search: Wildfire Catastrophe Model California

Author: Anaheim Staff Writer

Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.