What to expect from California’s new Insurance Commissioner

1. An approach to regulation focused on consumer protection and enforcement rather than as facilitating market capacity (“The core responsibility of the Insurance Commissioner is to be a fierce watchdog for consumer rights”)¹
2. More aggressive regulation intended to protect claimants under policies (“I will establish a Policyholder Bill of Rights by law: timely decisions on claims, clear written explanations for any denial, access to independent appraisal…”² "Your rates shouldn't go up because you filed a claim, asked about filing one, or had a no-fault collision. I will freeze your rates when you file a claim")³
3. Greater scrutiny of rate filings (“The Insurance Commissioner's regulatory responsibilities, in particular, rate regulation, are the most important. The Commissioner's role is to ensure that rates are neither inadequate or excessive and has the authority to reject unjustified premium increases… The tools to push back exist, but the political will does not.”⁴ "I'll invest in the Department's rate review capacity so that every filing gets rigorous scrutiny whether or not an outside intervenor is at the table")⁵
4. Support for public challenges to rate hikes under Proposition 103 ("Commissioner Lara also moved to limit public oversight of rate increases under 7%, effectively curtailing the ability of consumer advocates like Consumer Watchdog to challenge those increases. Proposition 103 was designed to give the public a voice in insurance rate decisions — undermining it harms consumers.”⁶ “Rate hikes, no matter how small, add up and impact every Californian. Limiting the ability of consumer advocates to challenge those increases weakens accountability at a time when we need it most…If companies are asking for higher premiums, they should be able to justify them in a transparent, public process.")⁷
5. Greater emphasis and dedicated resources to market conduct exams (“Jane will launch market conduct examinations of insurers with elevated complaint rates or suspicious denial patterns, coordinate with the Attorney General on fraud referrals, and impose rate approval and license conditions on bad actors.”)⁸
6. Exploring and advocating for public options for insurance and a state-managed natural-disaster insurance model (“We propose a non-profit, public program that covers wildfire risk for every existing home in California. Participation will be mandatory…”⁹ “Disaster Insurance for All would move the state away from the current dynamic where private carriers cherry-pick low-risk customers, raise their rates, and push high-risk properties onto the FAIR Plan. That status quo isn't sustainable, and no amount of rate approvals will fix it.”)¹⁰
7. Uncertainty for insurers that want to enter new markets or withdraw from markets (“Insurers should be required to pay an exit fee, and they shouldn’t be allowed to cherry-pick which lines of business they keep. If they exit the homeowners market, they should exit other lines—auto, liability, workers’ compensation—as well… If you want to do business in California—the largest insurance market in the country—you need to serve the full market, not just the most profitable segments.”)¹¹
8. Uncertainty about previously approved rates (“If they can’t spend at least 65% back in claims, then they have to lower, because otherwise the profits are excessive….”).¹²

In short, we expect Commissioner Kim to aggressively pursue pro-consumer policies that may further constrain underwriting flexibility and will include increasing reliance on enforcement and consideration of public insurance options.

Please let us know if we can help you assess your business strategy with respect to existing or potential books of business.

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If you have any questions about this legal briefing, please feel free to contact any of the attorneys listed or the Eversheds Sutherland attorney with whom you regularly work.

_{1 Source: Jane Kim, Ballotpedia (Candidate Connection survey submitted May 6, 2026), https://ballotpedia.org/Jane_Kim.}

_{2 Jane Kim, California Insurance Commissioner Candidate, Answers Bay Area News Group's Primary Questionnaire, Mercury News / East Bay Times (May 22, 2026), https://www.mercurynews.com/2026/05/22/jane-kim-california-insurance-commissioner-candidate-answers-bay-area-news-groups-primary-questionn}

_{3 Jane Kim, Ballotpedia, https://ballotpedia.org/Jane_Kim.}

_4 Id.

_{5 Meet the Insurance Commissioner Candidates: Jane Kim, Capitol Weekly (Feb. 27, 2026), https://capitolweekly.net/meet-the-insurance-commissioner-candidates-jane-kim/.}

_{6 Jane Kim, California Insurance Commissioner Candidate, Answers Bay Area News Group's Primary Questionnaire, East Bay Times / Mercury News (May 22, 2026), https://www.eastbaytimes.com/2026/05/22/jane-kim-california-insurance-commissioner-candidate-answers-bay-area-news-groups-primary-questionnaire.}

_{7 Jane Kim, California Insurance Commissioner Candidate, 2026 Primary Election Questionnaire, Daily Breeze / Orange County Register (May 5, 2026), https://www.ocregister.com/2026/05/05/jane-kim-california-insurance-commissioner-candidate-2026-primary-election-questionnaire/.}

_{8 Jane Kim for Insurance Commissioner, Fast and Fair Claims, https://www.janekim.org/issues/fastfairclaims (last visited Nov. 3, 2026).}

_{9 Jane Kim for Insurance Commissioner, Policy Brief: Natural Disaster Insurance for All, https://www.janekim.org/janekim-policybrief-disasterinsuranceforall.pdf (last visited Nov. 3, 2026)}

_{10 Don Jergler, The Race for California Insurance Commissioner: Meet Jane Kim, Carrier Management (May 15, 2026), https://www.carriermanagement.com/features/2026/05/15/287741.htm.}

_{11 Jane Kim, California Insurance Commissioner Candidate, 2026 Primary Election Questionnaire, Orange County Register (May 5, 2026), https://www.ocregister.com/2026/05/05/jane-kim-california-insurance-commissioner-candidate-2026-primary-election-questionnaire/.}

_{12 CA Insurance Commissioner Candidates Offer Distinctly Different Plans to Solve Crisis, GV Wire (Oct. 29, 2026), https://gvwire.com/2026/10/29/ca-insurance-commissioner-candidates-offer-distinctly-different-plans-to-solve-crisis.}