From CalMatters economy reporter Levi Sumagaysay:
When Insurance Commissioner Ricardo Lara testified about California’s property insurance market before the Assembly’s insurance committee this week, he mentioned a recent trip to Bermuda — somewhat defensively.
Lara attended the Bermuda Risk Summit, an insurance industry conference, last week. He gave a keynote address on March 11, the same day the Senate Insurance Committee held an oversight hearing that he missed. Michael Martinez, chief deputy commissioner, and Michael Peterson, deputy commissioner for climate and sustainability, represented the Insurance Department at that Senate committee hearing.
On Wednesday, Lara — who in 2019 apologized for taking campaign contributions from the insurance industry — told the Assembly committee that he went to the summit to meet directly with reinsurers, nearly 40% of which are based in Bermuda. Reinsurers provide insurance to insurance companies. Their role is key when policyholders file claims.
- Lara, to the committee: “We have to engage face-to-face, which allows for more direct answers, and I must confront the insurance industry to drive these results. If insurance companies are telling me that the cost of reinsurance is almost tripling, well then I need to trust but also verify by directly meeting with the reinsurance companies who are their customers.”
Lara also said he got some reinsurance companies to agree to expedite payments to wildfire survivors, and that they agreed to work with the state on expanding earthquake insurance.
Michael Soller, a spokesperson for the department, said Lara’s Bermuda trip was paid for by the National Association of Insurance Commissioners. States pay annual assessment fees to the association based on insurance premium volume. This year California is paying the maximum amount of $150,000, along with Florida, New York and Texas, according to the association’s budget.
Lara also said he expects the California insurance market to improve in 2026 — in line with predictions by the insurance industry CalMatters reported in 2023 — after his regulatory reforms that went into effect this year are more fully implemented and insurance companies are able to raise their rates they feel matches their risk.
CalMatters events: Join us April 16 for “How are the kids? A dive into what’s stressing young Californians and the state’s plan to help.” This half-day symposium in downtown Los Angeles will examine youth mental health issues and includes lunch. Register today.
Other Stories You Should Know
Newsom’s rightward turn?
Four episodes into his new podcast — in which Gov. Gavin Newsom speaks with MAGA loyalists and other guests — reactions from listeners and legislators from both sides of the political aisle have been a mix of bewilderment, skepticism and concern.
As CalMatters’ Alexei Koseff explains, in the podcast’s debut episode, Newsom surprised members of the LGBTQ community when he said the issue of transgender athletes competing in women’s sports was “deeply unfair” during a conversation with conservative provocateur Charlie Kirk.
In another episode with President Donald Trump adviser Steve Bannon, the governor said he was “not an absolutist as it relates to being against tariffs.” But days before, Newsom issued a statement that said tariffs are “a tax on hardworking American families.”
With two years left in his governorship, legislators, advocates and California residents have been left wondering how much weight to give Newsom’s casual podcast comments when it comes to his stance on state policy.
- Anthony Rendon, former Assembly speaker when Newsom took office during Trump’s first term: “They’re mystified. ‘WTF’ is the most common text message I get.”
Elsewhere in the state Capitol: Though it’s been four years since California passed a landmark law expanding mental health coverage, advocates continue to raise concerns about the lack of health plans covering mental health treatment. In response, the Legislature is considering a handful of bills that seek to regulate mental health insurance. Find out what they are from CalMatters’ Jocelyn Wiener.
Tesla lays groundwork for robotaxis
State regulators on Tuesday granted electric carmaker Tesla Inc. permission to kick off a charter service using Tesla-employed drivers in company-owned vehicles, writes CalMatters’ Malena Carollo.
Stemming from a November 2024 application from Tesla, the California Public Utilities Commission authorized the limited transportation service to shuttle Tesla employees in prearranged rides.
Though the permit does not enable Tesla to operate a rideshare service nor allow it to run driverless taxis, it could serve as a key step toward the company launching driverless vehicles. In January, Tesla’s CEO told investors it plans to launch self-driving cars in Austin in June.
- Sam Abuelsamid, vice president of market research at communications firm Telemetry and an auto industry analyst: “The only reasonable explanation I can come up with for why they’ve got this (permit) is to allow them to test some of the operational backend services required to run a mobility service.”
And lastly: Protestors sue UCLA
Nearly a year after counterprotesters attacked UCLA students and faculty who were protesting the Gaza war at an encampment on campus, the pro-Palestinian demonstrators are suing University of California and UCLA officials over three separate events. Find out why from CalMatters’ Mikhail Zinshteyn.
California Voices
CalMatters columnist Dan Walters: Under pressure from the Trump administration, the University of California this week abandoned its diversity statement requirement for faculty — a practice the system should have never implemented in the first place.
To treat substance abuse disorder in rural communities, state and local governments must expand the number of “medication units” available to patients, writes Tracy Nguyen, a Stanford University student studying political science and public policy.
Other things worth your time:
Biden’s prisons chief tapped to fix lagging mental health care in CA lockups // Los Angeles Times
9th Circuit upholds contempt finding against CA over prison mental health crisis // San Francisco Chronicle
9th Circuit upholds CA ban on large-capacity magazines // The San Diego Union-Tribune
Banned from assisted living? It’s hard for CA consumers to tell // Los Angeles Times
UC to freeze hiring systemwide, citing Trump threats and potential state funding cuts // San Francisco Chronicle
Fewer CA kindergarten students immunized against measles last year, new data show // Los Angeles Times
Will Black women have to wait another century for CA wage equality? // Capital & Main
733 CA condo buildings are on a secret ‘mortgage blacklist’ // The Mercury News
Trump moves to close gaps in San Diego border, amid environmental concerns // The San Diego Union-Tribune
Bay Area Ukrainian tech workers caught in Trump’s crossfire // The San Francisco Standard