Lara Addresses Assembly on Insurance Market, Defends Bermuda Trip
During a recent Assembly insurance committee hearing, California Insurance Commissioner Ricardo Lara found himself on the defensive, specifically regarding a trip to Bermuda. The trip, to the Bermuda Risk Summit, an insurance industry conference, became a point of contention.
According to a report by CalMatters, Lara attended the Bermuda Risk Summit last week, where he delivered a keynote address on March 11. This date coincided with a Senate Insurance Committee oversight hearing, which he missed. The Insurance Department was represented by Michael Martinez, chief deputy commissioner, and Michael Peterson, deputy commissioner for climate and sustainability.
During the Assembly committee hearing, Lara explained the necessity of the Bermuda trip, stating that he needed to meet with reinsurers directly. Nearly 40% of these companies are based in Bermuda, and they are a crucial part of the insurance process, providing insurance to insurance companies.
Lara told 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 mentioned he had secured agreements from some reinsurance companies to expedite payments to wildfire survivors. Furthermore, they agreed to collaborate with the state to expand earthquake insurance coverage.
Michael Soller, a spokesperson for the department, clarified that Lara’s trip was funded by the National Association of Insurance Commissioners. The association is supported by annual assessment fees paid by states, based on insurance premium volume. This year, California, Florida, New York, and Texas each are paying the maximum amount of $150,000, according to the association’s budget.
Lara expressed optimism for the California insurance market, predicting improvements in 2026. These improvements would follow the more complete implementation of his regulatory reforms, which went into effect this year, allowing insurance companies to adjust rates.
