Reviving California's Insurance Market: Assemblyman Tom Lackey on the Challenges of Reform and the Road Ahead

California's homeowners are facing a crisis of confidence — not just in their insurance companies, but in the system itself. Carriers are retreating from the state, rates are skyrocketing, and millions are being pushed into the California FAIR Plan, once considered a last-resort option.

At the same time, policymakers in Sacramento are debating how to modernize a decades-old regulatory structure that hasn't kept up with today's economic and environmental realities.

In a recent episode of Insurance Hour, host Karl Susman sat down with Assemblyman Tom Lackey, a former California Highway Patrol officer and a seasoned legislator, for a frank discussion on the state's Sustainable Insurance Strategy — a long-awaited plan aimed at stabilizing California's faltering insurance market.

Their conversation reveals the complexities, politics, and high stakes behind the state's attempt to "jumpstart" private insurance in California.

"We're in Trouble — and Everyone Knows It."

Susman opened the discussion with a question that's on every homeowner's mind:

"Assemblyman, you've heard about the Sustainable Insurance Strategy. What are you hearing from your constituents, and what do people here in Sacramento really think about it?"

Lackey didn't mince words.

"I think there are more questions than answers," he said. "It's a goal — and no one quite knows how to get there. The only thing that's predictable is that we're in trouble."

That sense of urgency echoes what many in the industry have been saying for years. The Sustainable Insurance Strategy, introduced by Insurance Commissioner Ricardo Lara, is designed to bring insurers back to California by modernizing rate-setting rules, introducing catastrophe models, and requiring companies to write policies in high-risk areas.

But as Lackey pointed out, the plan remains more aspiration than roadmap.

"We've kind of been procrastinating," he said. "And the longer we wait, the harder it gets."

The Legislature's Role — and Its Limits

Susman pressed further, asking how lawmakers in Sacramento view their role in the process.

"You've got the Insurance Commissioner, you've got the Governor, and then you've got the Legislature. Who should actually be driving this?"

Lackey's answer was refreshingly pragmatic:

"We have an elected Insurance Commissioner. This is his job. He's responsible for managing this. The Legislature shouldn't be ...

In this episode of "Insurance Hour," host Karl Susman takes the audience on a journey outside the studio to Sacramento, where he meets with elected officials to discuss various pressing issues related to the insurance industry. The episode features a special interview with Amanda, shedding light on significant legislative changes and their impact on Californians. The conversation delves into critical topics, including insurance policies, claims, and the intricacies of the California insurance market, providing listeners with valuable insights and updates.

Wanna text us?

Insurance Hour is hosted by renowned insurance expert Karl Susman. Karl is a frequent guest on television stations such as ABC, CBS, Spectrum, The CW and FOX, and now his popular radio program is available online throughout California and world-wide.

Listeners can now tune in to Insurance Hour on great AM radio station KMET throughout the state of California.

In addition to traditional radio, Insurance Hour is available on several popular streaming platforms, ensuring that listeners can access the show at their convenience.

Audiences worldwide can now enjoy Insurance Hour at InsuranceHour.com, on YouTube, Amazon Music, Tuneln, Alexa, Apple Podcasts, and the iHeartRadio app.

For more information about "Insurance Hour" and its programming, please contact Lara Starr at [email protected]

Legislative Insights: Assemblyman Tom Lackey on California's Insurance Reforms and Road Safety Challenges

California's insurance system is at a crossroads. Homeowners across the state are grappling with soaring premiums, disappearing coverage options, and a marketplace teetering on the edge of dysfunction. Meanwhile, the state's roadways are seeing a surge in distracted driving accidents and rising safety concerns.

In this special Insurance Hour episode, host Karl Susman sat down in Sacramento with Assemblyman Tom Lackey — a former California Highway Patrol officer and a ten-year veteran of the State Legislature — to discuss two pressing issues shaping the lives of Californians: the state's insurance crisis and the growing danger of distracted driving.

What followed was an unusually candid conversation about affordability, accountability, and the challenges of legislating in a state where every solution seems to come with new complexities.

From the Highway to the Capitol: Tom Lackey's Road to Public Service

Assemblyman Tom Lackey's story begins in the small desert town of Boron, California — a close-knit mining community of roughly 3,000 residents. His father was the local dentist, and Lackey's early ambition was to serve and protect his community.

After earning a degree in special education, he spent a year teaching before pursuing a lifelong dream: joining the California Highway Patrol (CHP).

"I overcame the odds after teaching a year in special education," Lackey recalled. "And I retired from the highway patrol after 28 years."

That hands-on experience gave him an unfiltered view of Californians' day-to-day challenges — from traffic safety to financial hardship. Today, as a legislator representing parts of Southern California, Lackey channels that same sense of duty into policymaking.

"It's a very rewarding battle at times," he said, "and very frustrating at other times."

One of those frustrating battles? Insurance.

The Distracted Driving Dilemma

Before diving into property insurance reform, Susman couldn't resist asking Lackey — the former highway patrolman — about something he's seen firsthand: distracted driving.

"We all create habits," Lackey said. "And these smartphones have become a big part of our lives. A significant majority of people do not abandon those habits when they get behind the wheel."

He's right. According to studies by the National Highway Traffic Safety Administration (NHTSA), distracted driving contributes to nearly one in ten fatal crashes in the Uni ...

In this episode of "Insurance Hour," host Karl Susman sits down with Senator Alvarado-Gil at her picturesque home to discuss the California Fair Plan and the new discounts available to homeowners. They delve into the significance of these discounts, how they impact residents living in wildfire-prone areas, and the broader implications for California's insurance market. The conversation also touches on the challenges and benefits of living away from urban centers, the beauty of rural California, and the senator's insights into state policies affecting homeowners' insurance.

Wanna text us?

Insurance Hour is hosted by renowned insurance expert Karl Susman. Karl is a frequent guest on television stations such as ABC, CBS, Spectrum, The CW and FOX, and now his popular radio program is available online throughout California and world-wide.

Listeners can now tune in to Insurance Hour on great AM radio station KMET throughout the state of California.

In addition to traditional radio, Insurance Hour is available on several popular streaming platforms, ensuring that listeners can access the show at their convenience.

Audiences worldwide can now enjoy Insurance Hour at InsuranceHour.com, on YouTube, Amazon Music, Tuneln, Alexa, Apple Podcasts, and the iHeartRadio app.

For more information about "Insurance Hour" and its programming, please contact Lara Starr at [email protected]

Unlocking Homeowner Insurance Savings: Senator Marie Alvarado-Gil and the Future of California's FAIR Plan

California's homeowners are facing one of the most challenging insurance markets in decades — with premiums surging, coverage shrinking, and millions of residents forced onto the California FAIR Plan, the state's "insurer of last resort."

In this episode of Insurance Hour, host Karl Susman visited State Senator Marie Alvarado-Gil at her rural Northern California home for an in-depth conversation about the FAIR Plan, the new home-hardening discounts, and what real solutions might look like for families struggling to stay insured.

Their candid, on-location discussion revealed the emotional and economic weight of California's insurance crisis — and the urgent need for reform, collaboration, and innovation.

Here's what they uncovered.

The FAIR Plan: A Lifeline — or a Burden?

When Californians think of the FAIR Plan, many imagine a safety net designed for those living deep in wildfire-prone mountains or remote areas. But as Senator Alvarado-Gil explained, that image no longer fits reality.

"Almost half of the FAIR Plan's business isn't even in the hills," Susman noted. "It's in the flats. And that's not what the FAIR Plan was meant for."

Originally created in 1968, the California FAIR Plan was intended to provide basic fire insurance for homes and businesses that couldn't obtain coverage elsewhere. It's not a government agency, but rather a state-mandated, private consortium of all insurers doing business in California.

It's also a nonprofit, designed to hold minimal reserves and pay out nearly everything it collects.

In theory, the FAIR Plan shouldn't generate profits — but as costs and claims continue to rise, even this safety net is straining under financial pressure.

"The Fair Plan president said they were in need of a 60–70% rate increase," Susman recalled. "They're only getting around 20%. That means even their current rates — as high as they are — are still inadequate."

Senator Alvarado-Gil: "I'm On the FAIR Plan Too."

Unlike most policymakers, Senator Marie Alvarado-Gil isn't speaking from secondhand reports — she's living the crisis firsthand.

"I have the honor of being the only member of the state legislature that's on the FAIR Plan," she said. "So when my constituents talk about their frustrations, I tell them, 'I get it. I'm walking in your shoes.'"

After moving from the Bay Area to a rural mountain property, Alvarado-Gil expected higher insurance costs. What she didn't expect was massive year-over-year increases and

Allstate's 34% Rate Hike Request: What It Means for California Homeowners and the Future of the Market

California homeowners are bracing for yet another jolt to their wallets — this time from one of the nation's largest insurance companies.

Allstate has officially requested permission from the California Department of Insurance (CDI) to raise its homeowners insurance rates by an average of 34.1%, a move that could affect more than 350,000 policyholders statewide.

If approved, this would represent the largest rate hike by a major insurer in California so far this year, surpassing State Farm's recent 30% request. But according to industry experts, including insurance agency owner Karl Susman, this may not be as surprising — or as devastating — as it sounds.

In this installment of Insurance Hour and CBS 8 coverage, Susman breaks down why these increases are being proposed, what's driving them, and what homeowners should — and shouldn't — do right now.

Why Allstate Is Asking for a 34% Increase

Allstate's filing comes after years of mounting financial pressure in California's home insurance sector.

The company cited several key reasons for the increase:

• Rising repair and rebuilding costs due to inflation and labor shortages.

• More frequent and severe weather events, including wildfires and storms.

• Legal system abuse, referring to costly litigation and claims processes that drive up expenses.

Susman summed it up succinctly:

"It doesn't surprise me to see Allstate taking some significant rates right now because they are way behind the eight ball as far as the industry is concerned."

In other words, Allstate — like many carriers — has been operating at a financial disadvantage for years. Strict rate regulations have prevented them from adjusting prices to reflect actual risk and cost. The result? A growing mismatch between what insurers pay out in claims and what they collect in premiums.

The Broader Industry Context

Allstate's move follows a series of major developments in California's troubled insurance market:

• State Farm recently requested a 30% average increase for homeowners, plus 52% for renters and 36% for condo owners.< ...

California's Insurance Shake-Up: Why State Farm and Allstate Want 30% Rate Hikes—and What It Means for Homeowners

California's insurance market has been in crisis mode for years — and the pressure is only mounting. Now, two of the state's biggest players, Allstate and State Farm, are asking regulators for permission to raise homeowners insurance rates by an average of 30% or more.

For the 7.5 million homeowners who already face soaring premiums, limited coverage, and shrinking options, these proposals may feel like yet another blow. But experts say these filings also represent something deeper — a potential turning point in California's long-running tug-of-war between regulation and solvency.

In this episode of Insurance Hour, insurance expert Karl Susman broke down what these massive rate requests mean, why they're happening, and how they might actually hint at better days ahead for California's insurance landscape.

The Numbers: How Big Are These Rate Hikes?

According to the San Francisco Chronicle, Allstate is requesting the largest homeowners insurance rate hike by a major insurer in the past three years.

• Allstate's proposal:

  • Average increase: 34%

  • Range: Some policyholders could see small decreases, while others could face increases of over 600%.

  • Scope: Roughly 350,000 policyholders affected.

Meanwhile, State Farm, California's largest home insurer, has filed for:

• Average increase: 30% for homeowners.

• 36% for condo owners.

• 52% for renters.

Both filings are still pending approval from the California Department of Insurance (CDI), which has the legal authority under Proposition 103 to review and approve — or deny — any rate changes.

"Just because they're asking for these rates," Susman reminded viewers, "number one, it's not going to happen tomorrow. And number two, every single part of it has to go through the Departm ...

In this episode of "Insurance Hour," host Karl Susman delves into critical issues affecting the California insurance market. The discussion includes the latest updates on regulatory changes, the impact of natural disasters on insurance policies, and the evolving landscape of cyber insurance. Karl also addresses listeners' questions, providing expert insights into various types of insurance claims and offering practical advice for navigating the complexities of insurance coverage.

Wanna text us?

Insurance Hour is hosted by renowned insurance expert Karl Susman. Karl is a frequent guest on television stations such as ABC, CBS, Spectrum, The CW and FOX, and now his popular radio program is available online throughout California and world-wide.

Listeners can now tune in to Insurance Hour on great AM radio station KMET throughout the state of California.

In addition to traditional radio, Insurance Hour is available on several popular streaming platforms, ensuring that listeners can access the show at their convenience.

Audiences worldwide can now enjoy Insurance Hour at InsuranceHour.com, on YouTube, Amazon Music, Tuneln, Alexa, Apple Podcasts, and the iHeartRadio app.

For more information about "Insurance Hour" and its programming, please contact Lara Starr at [email protected]

When Your Insurer Drops You—and Your Premium Doubles After One Accident Navigating Insurance Nonrenewals and Rate Shocks

You've paid your premiums on time for decades, never filed a claim, and suddenly—your insurance company drops you. Or maybe, after one minor fender-bender in 40 years, your rate doubles overnight.

If this sounds familiar, you're not alone. Californians across the state are experiencing what many are calling an insurance crisis—where loyal customers are being penalized despite spotless records.

In this episode of Insurance Hour, host and insurance expert Karl Susman tackled listener questions about nonrenewals, skyrocketing premiums, and what consumers can actually do when the system feels unfair. His answers cut through frustration and focused on action — helping homeowners and drivers understand their rights and responsibilities in today's volatile market.

Here's what you need to know if your insurer drops you—or suddenly decides your risk has changed overnight.

When Your Insurance Company Drops You

One listener wrote in:

"My homeowner's insurance company dropped me after never filing a claim. How can I fight it?"

It's a question thousands of Californians are asking right now, as major insurers reduce their footprint in the state or pull out altogether.

Susman began with a hard truth:

"If your carrier is pulling out of your entire area—or even the entire state—there's not much you can do to fight that."

That's because many companies aren't targeting individual homeowners. They're making broad underwriting decisions—nonrenewing entire zip codes, counties, or regions based on wildfire exposure, construction costs, or overall profitability.

"If the company isn't writing in your zip code anymore, you can't really appeal it," Susman explained. "It's not about you—it's about the portfolio."

However, not all nonrenewals are created equal. If your insurer is canceling your policy for specific, correctable issues, you may have a fighting chance.

Step 1: Understand Why You Were Dropped

Insurance companies are legally required to provide a reason for nonrenewal. Common causes include:

• Roof age or condition

• Lack of defensible space or brush clearance in wildfire zones

• Structural concerns found via satellite imagery or inspection

• Poor property maintenance or unresolved repairs

Why Your Insurance Agent Doesn't Call Back—And Why Your Dog Might Be Raising Your Premiums

In the often confusing world of insurance, a little communication—and a lot of understanding—can make all the difference.

That was the message from Karl Susman, host of Insurance Hour, who tackled a range of listener questions in this episode—from frustrated policyholders whose agents won't return calls to dog lovers wondering why their furry friends are costing them coverage.

What unfolded was part empathy, part education, and 100% classic Susman: clear, honest, and practical advice for navigating the tricky nuances of insurance in real life.

Here's a breakdown of the lessons from this episode—and what they mean for anyone trying to get fair coverage and good service in today's unpredictable insurance landscape.

When Your Insurance Agent Won't Call You Back

The first listener question came from someone clearly at the end of their rope:

"My insurance agent won't return my calls. Can I get her in trouble or report her to the police?"

It's a question that captures a surprisingly common frustration. When you're paying hundreds or even thousands of dollars a year in premiums, you expect your agent to be responsive. But what happens when they're not?

Susman's answer was grounded in both professionalism and compassion.

"You could get her in trouble," he admitted. "You could go to her employer, the insurance company, or even the Department of Insurance. But that's really the last resort."

Instead, he urged listeners to start with understanding and direct communication.

"Try and work with them," he said. "We're all people too. Maybe they're having a bad day or something's going on in their life. Before you go nuclear, try sending an email or leaving a kind voicemail saying, 'Hey, I know you're busy, but I really need to talk to you. Can you please call me back or have someone reach out?'"

That approach, he noted, works far better than anger or threats.

Agents Are People, Too

Susman reminded listeners that insurance agents are human—fallible, busy, sometimes overwhelmed—but usually well-intentioned.

"There are good agents, average agents, and bad agents," he said. "Just like doctors, lawyers, or mechanics. Some are excellent, some are okay, and some really shouldn't be doing what they do."

He even quoted his father's memorable advice:

"When you go to medical school, even the doctor who graduates with a C still gets to write MD after their name."

In other words, credentials don't always guarantee excellence—but empathy and professionalism do.

If your agent consistently ignores you, Susman ...