Fire, fire everywhere. And not an insurer in sight.

According to the state's utilities, the insurers don't want any part of writing high-end insurance coverage for utilities. This meltdown of the fire insurance business appears not to have caused a ripple at the state's Department of Insurance.

In early September, UCAN joined with two other consumer groups to bring this crisis to the attention of the state's Insurance Commissioner, Steve Poizner. Oh, by the way, Commissioner Poizner is poised to leave that position next year. He wants to be Governor.

The consumer groups wrote, in part: "We ask for your immediate intervention in what appears to be a looming issue relating to insurance and energy. The state's insurers are cutting availability and increasing costs for fire-related insurance. Yesterday's Los Angeles Times featured an article on homeowners documented this new policy.1 The insurance industry admitted that the reason for this is because of the industry's fear of actually having to perform their basic function - providing protection.

After collecting billions of dollars in premiums ever year from California's consumers, insurance companies are repaying customer loyalty by refusing to fulfill their fundamental job of providing insurance. Just when Californians need insurance the most, the industry is now citing the need for insurance to leave Californians high and dry. This is a perverse industry practice with far-reaching consequences that requires your immediate attention.

For example, just this week the state's three major investor-owned energy utilities, which together serve nearly 70% of California's population, filed for a large rate increase with the Public Utilities Commission (PUC) in order to cover the costs of wildfire claims their insurers now refuse to pay.3 In effect, the insurance industry is pushing the job of insurance onto California's utilities. Consequently, the utilities are now turning to ratepayers to cover this additional expense through rate increases.

Without some kind of authoritative action by your office, we are concerned that millions of California homeowners have to pay more for less because insurers are pulling away from our state. These same homeowners may now have to pay more for their power, because insurers are now declining to fulfill their basic function of providing insurance".  Click the attachment below to see the entire letter.

We asked Poizner to immediately call an emergency hearing to help remediate the impact of the insurance industry's actions on utility ratepayers; and launch an investigation on whether insurance companies pulling out of insuring homes should be continued to be licensed by your office to provide any products or services in this state.  And since that September 2nd letter was sent, the Commish has ... so far, done nothing.  Not a peep.  Guess running for Governor is keeping him very busy.  

Stay tuned, and we'll let you know whether this fire insurance "crisis" burns out or burns the state's consumers.