California Climate Insurance

California communities are increasingly threatened by extreme heat events, whose financial and social impacts are often not fully examined or integrated into risk mitigation strategies. To tackle this, Insurance Commissioner Ricardo Lara sponsored legislation (Public Resources Code, section 81410(f)) based on the recommendations of the California Climate Insurance Working Group to develop a new analysis of uninsured and insured impacts from recent extreme heat events. This has resulted in the first-of-its-kind report: “Impacts of Extreme Heat to California’s People, Infrastructure, and Economy."

The report supports the California Protection Agency’s development of an Extreme Heat Ranking System (Public Resources Code, section 71410(g)) and implements key recommendations from the 2021 Climate Insurance Report, produced by the California Climate Insurance Working Group, convened by Commissioner Lara under state statute (Insurance Code, section 12922.5).

Explore the Report

• Download Full Report
• Download Key Findings and Recommendations

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With California communities facing increasing threats from increasingly exposed to climate change-related threats, Insurance Commissioner Ricardo Lara wrote the nation's first climate insurance law to protect consumers in the years ahead.

Senate Bill 30 (Chapter 614, Statutes of 2018) established a working group of environmental advocates, researchers, and insurance experts making recommendations for policies to reduce the costs from wildfires, extreme heat, and flooding. The California Climate Insurance Working Group published a report in 2021 titled "Protecting Communities, Preserving Nature, and Building Resiliency; How First-of-Its-Kind Climate Insurance Will Help Combat the Costs of Wildfires, Extreme Heat, and Floods."

Climate Insurance Report – One Year Implementation Update