Former San Francisco Board of Supervisors member Jane Kim has been elected as the Insurance Commissioner of California. She surpassed her opponent, Senator Ben Allen, by more than 600,000 votes.
Kim has been endorsed by Senator Bernie Sanders and has proposed creating a single-payer disaster insurance program and lowering other insurance costs for Californians.
Kim hopes to model California’s system after New Zealand’s, giving all homeowners who purchase private insurance access to a public disaster insurance system, with premiums determined by a home’s risk level and property value. Kim argued that this system may incentivize homeowners to combat climate change and wildfire on their own properties, as it would lower a household’s insurance premium.
“We put out some big and bold ideas on how to transform insurance, including a publicly run nonprofit disaster insurance program,” Kim said.
Kim has also said she hopes to revamp the FAIR Plan, a last resort insurance program for homeowners who cannot purchase traditional insurance because their homes are high-risk for wildfires. The Plan’s limited coverage has created problems for residents trying to rebuild in the wake of the Palisades and Eaton fires. Furthermore, a California judge ruled that the FAIR Plan’s handling of smoke-damage claims was unlawful, as insurers under the FAIR Plan were denying or underpaying the claims in a way that violated the California Insurance Code.
While Kim has big hopes for California’s insurance systems, some are skeptical of whether she will be able to execute, including Amy Back, executive director of United Policyholders.
“The reality of regulating the insurance industry here in California, even though she’s an elected commissioner, the commissioner only has so much authority,” Back said. “The legislature has to approve things that are new and different.”
Kim has stated that she is already meeting with insurance industry executives and hopes to bring change to the California insurance system.
The post New California Insurance Commissioner Jane Kim Has Big Plans. But Can She Execute? appeared first on LAmag.
