California Insurance Regulations May Update

May 13th, 2025  — Insurance Commissioner Ricardo Lara has approved a judge’s decision allowing State Farm to raise rates on an emergency basis, requiring a $400 million cash boost from its parent company to address financial troubles. The ruling also blocks State Farm from issuing new mass non-renewals through 2025. Commissioner Lara said the move balances consumer protections with the need for stability, “We are in a statewide insurance crisis affecting millions of Californians. Taking this on requires tough decisions. This is not a game.” State Farm must now fully explain its financial condition in a formal rate hearing.