Insurance Business America announced that California’s FAIR Plan, the state’s insurer of last resort, saw enrollment grow 4% in the fourth quarter of 2025, reaching 668,609 policies.
According to Insurance Business America, this expansion is indicative of market dysfunction caused by regulatory constraints that hinder accurate risk pricing. These constraints have led carriers to withdraw from the market, resulting in increased reliance on the FAIR Plan. The situation underscores the potential for reciprocal models that could align interests for more efficient and sustainable coverage.
The California FAIR Plan Association reported that as of December 2025, there were 668,609 policies in force—a 4% increase since September 2025 and a substantial 146% rise since September 2022. Total exposure reached $724 billion, marking a 4% quarterly increase, while written premiums grew by 2%. These figures highlight how Proposition 103’s rate approval requirements restrict necessary adjustments for wildfire risks, prompting carrier withdrawals and greater dependence on California’s insurer of last resort.
Insurance Business America noted that this ongoing growth has sparked debates over insurance reforms. Consumer advocates argue it reflects a deepening crisis due to regulatory constraints on risk pricing accuracy. Meanwhile, industry representatives suggest reforms require time as carriers limit policies in high-risk areas.
Insurance Business America is recognized as a leading B2B trade publication within the insurance sector, having achieved over 14 million pageviews globally in 2024. It provides aspirational content including industry reports, breaking news, and expert analysis aimed at professionals in the U.S. insurance broking industry.
