Zurich is committing to expand its property coverage availability in areas designated as distressed in California through a new rate filing.
Zurich U.S. submitted a commercial property insurance rate filing in California under the state’s Sustainable Insurance Strategy, an effort by Insurance Commissioner Ricardo Lara and the California Department of Insurance to address the state’s insurance market crisis.
Zurich is among the first commercial insurance providers to take advantage of the initiative. The Travelers Companies in April said it intends to expand its homeowners insurance offerings across California, notifying the CDI it intends to expand homeowners insurance availability across the state and explaining the move is due to the Sustainable Insurance Strategy.
Zurich has committed to increase the number of insured commercial property locations in areas that the California Department of Insurance has designated as “distressed,” consistent with the strategy’s focus on expanding the number of properties insured in those regions.
Zurich said it will pursue measured growth across selected commercial segments, including real estate, financial institutions, professional services, manufacturing, technology, and life sciences, especially in California’s wildfire-distressed areas. The company said it will also continue to evaluate other new and renewal business opportunities in areas of the California market identified as capacity-constrained.
“California is an important market for Zurich, and we are committed to supporting solutions that strengthen the availability of insurance while maintaining a disciplined approach to risk,” said Peter Caminiti, chief underwriting officer for Zurich U.S.
Zurich expects to implement the filing following regulatory review and approval.
Broader Industry Response
The Sustainable Insurance Strategy, a response to carriers curtailing or halting the writing of homeowners insurance in California, has been cited by several carriers in announcements to return to writing business in the state.
The strategy is part of broad efforts by Lara and the CDI to make the state more attractive to insurers. The latest move is an effort to revamp the state’s intervenor process, in which groups or individuals are paid for intervening in rate hearings.
In January, two carriers announced they were working to expand coverage in wildfire-prone regions of the state in exchange for rate hikes. CSAA Mercury Insurance raised rates 6.9%, a move that was approved under the Sustainable Insurance Strategy.
Farmers Insurance in late November announced it would eliminate a cap on the number of homeowners insurance policies it offers in California. The cap removal was made in anticipation of an improved homeowners insurance market in California. Farmers homeowners offerings had previously been capped at 9,500 new policies per month.
Addressing the state’s insurance crisis became a heightened priority following the devastating January 2025 Los Angeles wildfires, prompting numerous actions from Lara and the state Legislature over the past year. Resolving the crisis has also emerged as a central issue among candidates for insurance commissioner seeking to replace Lara, who is term limited.
Top photo: The 2025 Pacific Palisades Fire. The Los Angeles wildfires were a turning point in the state’s insurance crisis, prompting actions by the state’s insurance regulator and Legislature. Photo by CalFire.
