Tag #Insurance Reform

What is the immediate impact of Mercury Insurance's rate hike request on California homeowners, and how does it reflect broader trends in the state's insurance market?

Mercury Insurance, California's third-largest insurer, requested a 6.9 percent average statewide rate hike, citing inflationary pressures and wildfire risks. This follows a new state reform allowing insurers to use catastrophe models to justify increases based on projected future losses, not just historical data. The increase won't be uniform; higher-risk areas may see larger hikes, offset by discounts for wildfire mitigation measures.