FAIR Plan “one event” away from needing a large assessment warns Roach

The California FAIR Plan Association (FAIR Plan) has experienced historic growth in recent years, as data shows its total exposure has nearly tripled with continued policy growth.

This last resort property insurer is dedicated to ensuring that all Californians have access to fundamental property coverage, helping to provide peace of mind during challenging times.

As insurance availability challenges persist in the state, more and more consumers are turning to the FAIR Plan to secure the protection they require.

Its newly created “Key Statistics and Data” page on its website provides information about the geographical distribution and expansion of FAIR Plan exposure, as well as the accelerating rate of growth in FAIR Plan Policies in Force.

The new page has revealed that from September 2019 to December 2023, the FAIR Plan’s total exposure nearly tripled, from $112.75 billion to $311.64 billion.

In the same period, Total Policies in Force increased 113%, from 154,494 to 339,044.

The FAIR Plan has emphasised its commitment to ongoing collaboration with the California Department of Insurance, the Legislature and other stakeholders to stabilise the market and depopulate the FAIR Plan.

These, the organisation noted, are essential goals of the Insurance Commissioner’s Sustainable Insurance Strategy.

Fair Plan president, Victoria Roach, warned the California Assembly Insurance Oversight Committee that the plan is “one event” away from needing a large assessment, given its exposure growth.

She noted that if the FAIR Plan was a normal insurer it would not have been allowed to grow as fast as it has.

The FAIR Plan has $4.8 billion in reinsurance arrangements, but each layer of the reinsurance tower includes co-insurance that means members would be assessed to support in paying claims.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.