Two Democrats vie for insurance commissioner position in California
California will elect its next insurance commissioner on Nov. 3, as incumbent Ricardo Lara is term-limited.
The insurance commissioner seat is elected for four years and is limited to serving two terms.
Sens. Ben Allen and Jane Kim, a consumer advocate and an attorney, will be on this year’s midterm ballot. Both are Democrats.
Allen has served in the state’s legislature since 2014, according to his campaign website. He lists climate and environmental policies as a focus during his tenure.
The website also lists work on strengthening transparency, including expanding ballot access and championing the DISCLOSE Act.
“He has consistently scored tops in the legislature in the California Clean Money Campaign’s reports for his commitment to transparency and political reform,” the website states.
Allen’s plan focuses on strengthening the state’s insurance market as wildfires and climate disasters intensify.
“My plan will restore a competitive insurance market, ensure Californians are treated fairly after disasters, and build resilient communities that can withstand the climate challenges ahead,” he states on his website.
Fighting insurers that “deny and delay” and post-disaster insurer compliance are other planned action items, Allen’s site claims.
This would include higher upfront payments for coverage requiring insurers to clearly explain claim denials and maintain post-disaster real-time reporting on delays and outstanding claims.
Kim previously served on the San Francisco Board of Supervisors, as California political director for Bernie Sanders, and as California director for the Working Families Party, according to her campaign website.
Her priorities focus on “affordable, available insurance for all,” the website states. She proposes a single-payer disaster insurance policy for state residents.
The website also says she’ll ensure premiums cover claims, or lower them.
“Insurance companies should spend premium dollars on their intended purpose: protecting policyholders,” the website states. “If companies collect more than they need to cover claims and a reasonable profit, that money should go back to policyholders or be invested in statewide resilience, not huge payouts at our expense — like the $27 million salary one insurance company CEO was paid last year.”
Her site states that a long-term goal is to build a public auto insurance option to compete in the market.
She also notes that she’s focused on “fast and fair claims.” This includes freezing rates when a claim is filed, penalizing delays to speed up payments, and immediate payouts.
Under Kim, insurance companies would be held accountable through market conduct examinations and elevated complaint rates, according to the website. She also proposes an insurance performance dashboard that consumers can use to assess insurer risks before choosing a policy.
Oklahoma, California, and Georgia are the states where policyholders are most likely to feel influenced by a new insurance commissioner on their home insurance premiums, according to an Insurify analysis.
California saw a 5% homeowners insurance increase last year, the analysis found. It also found home insurance rates have increased 22% since 2023.
Image
Feature photo courtesy of smartboy10/iStock
Embedded photos of candidates Ben Allen and Jane Kim from campaign websites.