Rep. John Garamendi, who was elected as California’s first voter-chosen insurance commissioner in 1990 and later served a second term, accused Ricardo Lara of failing to protect policyholders as premiums surge and coverage disappears.
A congressman and former California insurance commissioner is publicly attacking the state’s current insurance chief, saying consumers have paid the price for years of weak oversight.
Garamendi, a Democrat from Walnut Grove, said Lara, also a Democrat and now in his second term, has not met the obligations of the office.
He argued that the department has failed consumers facing soaring costs and mass nonrenewals, and at the same time failed insurers by not holding them financially accountable. California’s problems, he said, look worse than anywhere else in the country.
His remarks landed the same day an environmental nonprofit released a report accusing insurers of claiming financial strain while posting strong profits.
According to Unlocking America’s Future, average home insurance premiums in California jumped 55% between 2019 and 2024.
Over that period, insurers declined to renew more than 250,000 home policies and issued the lowest number of new policies since 2015.
Another report, this one from the National Association of Insurance Commissioners, shows property and casualty insurers returning to profitability in 2024 after four straight years of losses.
Beyond pricing, critics point to claims handling. Florida-based financial analyst Dr. Martin Weiss said delayed payments and aggressive claim reductions have become common.
The turnaround came largely from higher premiums, even as losses from natural disasters reached $110 bn nationwide last year.
He cited California FAIR Plan practices that limited smoke damage coverage to what could be seen or smelled, excluding other losses. Weiss said the law requires full smoke damage coverage. He added that State Farm faced penalties for similar conduct.
Data Weiss shared shows roughly one-third of California claims took at least 60 days to pay. Garamendi said the insurance commissioner already has the authority to address delays and underpayments. The tools exist. They mean nothing, he said, unless the office enforces the law against insurers.
Lara rejected the criticism, calling it misleading and politically motivated. In a statement, he said California’s insurance market is at a turning point and argued reforms will move people off the FAIR Plan and back into the private market.
He said his department focuses on protecting wildfire survivors, reviewing complaints, and pushing insurers to pay claims promptly. The department continues to mediate complaints against State Farm and other carriers, he said, seeking resolution where possible.
Lara has also faced scrutiny during his second term over first-class travel to international destinations. A Los Angeles Times investigation reported that his office has not disclosed who paid for many of those trips.
Garamendi described the insurance commissioner role as possibly tougher than serving as governor, given the need to confront one of the most powerful industries in the country.
He said several candidates have approached him as they prepare to run for the office next year. He has not endorsed anyone. His message to them stays blunt. Show the guts to take on the biggest financial industry in America.
