Four myths about insurance in California

California's insurance market affects way more people than homeowners. Per CalMatters, nearly half the state doesn't own homes—but renters, small business owners, and anyone who drives needs coverage. Landlords facing soaring costs are passing increases to tenants, while affordable housing operators are struggling to find insurance at all. The insurance industry has claimed hardship, but the numbers contradict that. Last year, insurers collected sixty-eight point seven billion dollars in premiums—up from twenty-five point three billion the prior year—and built reserves of one point two-seven trillion dollars. Chief executives at the ten largest insurers earned a combined one hundred thirty-four million dollars in compensation. With an election for insurance commissioner coming in November, the question facing Californians is whether state regulation or market forces should shape the insurance market going forward.

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