200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-5094
Fax: (714) 765-5164
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
CITY MANAGER’S OFFICE
DATE: OCTOBER 8, 2024
FROM: CITY MANAGER’S OFFICE
SUBJECT: RESOLUTION REQUESTING THE STATE OF CALIFORNIA
TAKE EMERGENCY ACTION TO STRENGTHEN AND
STABILIZE CALIFORNIA’S MARKETPLACE FOR PROPERTY
INSURANCE
ATTACHMENT (Y/N): YES ITEM # 22
GOVERNMENT CODE § 84308 APPLIES: NO
REQUESTED ACTION:
That the City Council, by Resolution, request the State of California (State) take emergency action to strengthen and stabilize California’s marketplace for property insurance.
DISCUSSION:
At the September 10, 2024 City Council meeting, Council Member Natalie Meeks requested a resolution to urge the State of California to take emergency action to strengthen and stabilize the state’s marketplace for property insurance.
In 1988, California voters passed Proposition 103, which established strong consumer protections aimed at maintaining fair and affordable insurance rates to foster a competitive marketplace. Recently, however, two of the State's largest insurance companies, accounting for over 27% of the admitted insurance market, announced they would cease issuing new homeowners and commercial property policies in California.
Additionally, several other companies, representing over 36% of the market, indicated plans to restrict new policy.
This reduction in available insurance options significantly impacts consumer access to coverage, leaving property owners across the state unable to secure new policies in the admitted market. Access to insurance allows existing homeowners to protect what is for many their largest and most important asset and empowers homebuyers to secure a mortgage for a home. In the city of Anaheim, generations of homeowners and business owners find themselves with limited options for property insurance.
Recently, the San Bernardino County Board of Supervisors and city of Yorba Linda adopted a resolution urging the State to take immediate action to address the property insurance crisis.
Resolution requesting the State of California take emergency action to strengthen and stabilize California’s marketplace for property insurance October 8, 2024
The proposed resolution formally urges the State of California to take immediate regulatory and legislative action to strengthen and stabilize California’s property insurance marketplace. If approved, the city will send a letter with the resolution to the State including Governor Gavin Newsom, Insurance Commissioner Ricardo Lara, and our state representatives.
IMPACT ON BUDGET:
There is no budgetary impact.
Respectfully submitted,
Jim Vanderpool
City Manager
Attachment:
1. Resolution