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California Insurance Commissioner Ricardo Lara is revising the state’s rate review process

California Insurance Commissioner Ricardo Lara is revising the state's rate review process

California Insurance Commissioner Ricardo Lara is revising the state’s rate review process by introducing a “data reconciliation tool” to ensure carriers complete their filings properly, according to a bulletin from Lara.

The tool aims to accelerate the rate review process by reducing delays caused by incomplete filings, which often extend reviews by weeks or months

Currently in the first phase of development, the tool is expected to complete this phase by the end of the year, with final implementation by 2025. State law requires carriers to submit complete filings for a thorough and transparent review process.

The American Property Casualty Insurance Association (APCIA) praised the initiative, agreeing that outdated regulatory practices need reform.

Long delays in the rate review process, averaging over a year, have contributed to the insurance crisis, creating market imbalances and limiting consumer access to coverage.

Mark Sektnan, APCIA vice president for state government relations

The bulletin also reaffirmed the department’s commitment to enforcing the 60-day timeline for rate reviews established by Proposition 103, passed in 1988.

Prop 103 also introduced an intervenor process, allowing challenges to carrier rate increases. Carriers argue that this system has lengthened the review timeline.

Lara emphasized that intervenors must also follow the 60-day timeline.

I expect insurance companies to submit complete filings, intervenors to follow the rules, and my department to conduct a transparent, thorough review within the timelines set by Prop 103. I am holding everyone accountable

California Insurance Commissioner Ricardo Lara

He stated that intervenors often delay the process by challenging rates without engaging promptly, and their requests sometimes overlap with the California Department of Insurance’s work, adding unnecessary delays.

“Californians are enduring unprecedented devastation, dealing with the fallout of a global pandemic, destructive reocurring wildfires and fighting for the health care they need during difficult times. I want all Californians to know: I’m on your side.

Ricardo Lara serves as California’s Insurance Commissioner. Following his eight years of elected service in California’s Assembly and Senate, he made history in 2018 as the first openly gay person to ever be elected to statewide office in California history. Raised by a factory worker and a seamstress — Venustiano and Dolores — Ricardo’s humble beginnings guide his work as he leads the state’s largest consumer protection agency.

Ricardo has taken on tough fights and won for working families — holding the insurance industry accountable while fighting for health care for all, helping California consumers during the unprecedented devastation of the COVID-19 pandemic, and assisting California wildfire victims in rebuilding their lives.

Yana Keller by Yana Keller