Office address: 300 Capitol Mall, Suite 1700, Sacramento, CA 95814 
Website: insurance.ca.gov 
Year established: 1868 
Employees: 1,400+ 
Key people: Ricardo Lara (insurance commissioner), Michael Soller and George Mueller (deputy commissioner), Charlene Ferguson (chief), Teresa Campbell (deputy commissioner), Tina Shaw (chief actuary) 
Operating budget: $322.4 million (total expenditures for FY 2022–23) 

The California Department of Insurance (CDI) is the state agency that makes sure insurance companies play fair. It watches over more than 1,300 insurers and licenses over 390,000 agents and brokers. CDI helps keep the insurance market stable and protects people when problems come up. 

History of the California Department of Insurance 

The California Department of Insurance (CDI) was created in 1868 to regulate the growing insurance market in California. It became a full department in 1941 and gained more power over time. Its mission is to safeguard consumers and keep the insurance market strong. 

Here are key moments in CDI’s history: 

• 1929: creation of the Division of Insurance inside the Department of Investment 
• 1941: formed as the standalone California Department of Insurance 
• 1947: McBride-Grunsky Insurance Regulatory Act set rules for rate approval and oversight 
• 1988: Proposition 103 made the insurance commissioner an elected official 
• 2024: launched a new climate-focused plan called the Sustainable Insurance Strategy 

California Department of Insurance now faces challenges like rising wildfire risks and fewer insurance options in rural areas. In 2024, it let insurers use reinsurance and risk models to set fairer rates.  

CDI also leads investigations that target large-scale fraud, including a $54 million workers’ comp insurance scheme uncovered by its enforcement team. 

California Department of Insurance mandate 

The California Department of Insurance works under the California Insurance Code to oversee the state’s large and complex insurance market. Its mission is to protect consumers, promote fair pricing, and support insurer solvency.  

The department applies insurance laws across many lines, including auto, life, and homeowners coverage. The CDI is led by the Insurance Commissioner, an elected official who serves up to two four-year terms.  

The department includes these divisions: 

• Consumer Services: assists with complaints and inquiries 
• Market Conduct: monitors insurer practices for compliance 
• Fraud Division: investigates and prosecutes insurance fraud 
• Licensing Services: manages licensing for agents and brokers 
• Financial Surveillance: ensures insurer financial stability 

These teams work together to carry out the department’s mandate and protect people across California’s insurance system. 

Key responsibilities  

The California Department of Insurance carries out day-to-day oversight of the insurance industry across the state. Its work touches nearly every part of how insurance is sold, priced, and enforced: 

• licensing insurers, agents, brokers, and adjusters 
• checking and approving insurance prices and policy documents 
• enforcing state insurance laws and regulations 
• investigating consumer complaints and fraud cases 
• monitoring insurer financial health and market conduct 
• helping wildfire and disaster-affected communities with insurance support 

It also works to expand insurance access in high-risk zones and guide fair claims practices. The agency collects market data and helps people understand their rights and coverage. 

These tasks help make sure insurance works fairly for all Californians. By doing this, CDI keeps the market stable and puts people first. 

Recent initiatives and regulatory focus 

The California Department of Insurance has recently enacted major reforms to address growing climate risks and insurance availability issues. In 2024, it finalized a rule allowing insurers to include reinsurance costs in rate filings.  

This change supports coverage expansion in high-risk zones and is part of its long-term sustainable insurance strategy for climate risk. 

The department is also under pressure to improve public transparency in how it handles consumer complaints. In a recent legal action, a watchdog group filed a lawsuit over withheld complaint data. These developments show a renewed focus on access, accountability, and policy reform. 

Consumer protection and outreach 

The California Department of Insurance actively protects consumers through targeted services and public support. It does this by: 

• investigating more than 56,000 consumer complaints 
• handling over 200,000 consumer assistance calls 
• recovering more than $130 million for consumers 

The department also runs insurance literacy workshops and disaster preparedness events to help people understand their coverage options. 

In response to the recent wildfires, the department sent its Disaster Assistance Response Team to impacted communities. It also launched the Safer from Wildfires framework, which promotes risk reduction and rewards mitigation efforts.  

These outreach efforts show the department’s strong focus on consumer protection and education.