Kim and Allen offer competing plans for California insurance crisis

The contest to replace term-limited Commissioner Ricardo Lara pits two Democrats with sharply different proposals for California’s troubled insurance market. The winner will lead the department that regulates insurers, handles consumer complaints and enforces insurance laws across several sectors, including property coverage.

Former San Francisco supervisor Kim wants to create a public, nonprofit program to cover major disasters including wildfires, floods and earthquakes. Her plan would use premiums to fund coverage and prevention measures, while private insurers would continue administering policies and routine claims. Kim says the current system gives too much weight to insurers’ profits and too little to preventing damage.

State Sen. Allen favors repairing the existing market instead. He has criticized Kim’s plan as potentially costing the state billions, while proposing more wildfire-resistant homes and communities, quicker reviews of rates and policies, and efforts to bring insurers back to California. He has also backed legislation on upfront payments for personal-property losses and low-interest loans for risk-reducing home improvements.

Both candidates support more transparency and oversight of the FAIR Plan, which has grown as private insurers have limited coverage in high-risk areas. They also say they will refuse insurance-industry campaign contributions. Allen’s supporters include the state Democratic Party and business groups; Kim has labor support and an endorsement from Sen. Bernie Sanders.

The next commissioner will confront claims disputes from the 2025 Los Angeles County fires, including pending department actions involving State Farm and the FAIR Plan. Kim’s public program would require legislative approval, and she has acknowledged that establishing it could take years. Both candidates say affordability and access to coverage need attention as the state prepares for future disasters.

Kim’s public disaster plan challenges California’s insurance status quo

California’s insurance crisis demands more than small adjustments, and Jane Kim is offering voters a structural alternative. The former San Francisco supervisor proposes a public, nonprofit disaster program covering wildfires, floods and earthquakes, funded by premiums and paired with prevention efforts such as wildfire mitigation and home hardening.

Kim argues that the current system puts insurer profits ahead of policyholders and safer communities. Her plan would leave private companies handling policies and routine claims while shifting major disaster risk to the new program. It would take legislative approval and could take years to establish, but Kim says it could reduce reliance on the FAIR Plan, which has expanded as private coverage has tightened.

Her opponent, state Sen. Ben Allen, wants to reform the existing market rather than build a public one. He has called Kim’s proposal costly and unworkable, while emphasizing wildfire-resistant homes, faster rate reviews and efforts to persuade insurers to return. Kim calls that approach more of the same, as Californians face higher costs and limited choices.

The next commissioner will also have to address claims from the 2025 Los Angeles County fires. The department has pending actions involving State Farm and the FAIR Plan over their handling of claims. Kim’s campaign has labor backing, including the California Labor Federation, and an endorsement from Sen. Bernie Sanders. The choice is between challenging the insurance system’s foundations and trying to make that system work better.

Allen offers market reforms as Kim advances costly public insurance plan

California needs more available, affordable insurance—not a sweeping public program that could saddle the state with enormous risk. State Sen. Ben Allen is proposing reforms to the existing market, including stronger wildfire protections, faster reviews of insurance rates and policies, and work to bring more insurers back to California.

His rival, former San Francisco supervisor Jane Kim, wants a public disaster insurance program funded by premiums and covering major events such as fires, floods and earthquakes. Kim says it would improve prevention and reduce dependence on the FAIR Plan. But the proposal would require legislative approval, could take years to launch and has drawn warnings about the scale of risk to the state. Allen has argued it could cost billions.

Allen’s approach focuses on practical changes to homes and communities exposed to wildfire. He has supported legislation for larger upfront payments after personal-property losses and low-interest loans for improvements that lower fire risk. His Senate district spans areas struck by the January 2025 Los Angeles County fires, and he says helping constituents with claims has informed his priorities.

Whoever wins will face disputes over fire-loss claims, including pending department actions involving State Farm and the FAIR Plan. Both candidates support more oversight of the last-resort plan and say they will reject insurance-industry campaign money. Allen has support from the state Democratic Party and business groups, while Kim’s campaign draws labor backing. Voters must choose between repairing the private market and replacing part of its disaster-risk structure.