The insurance industry has paid over $4.2 billion in claims related to the Los Angeles wildfires as of January 30, according to the California Department of Insurance. This includes 31,200 claims, with 14,417 of those receiving partial payments due to California law, which requires advance payments to accelerate recovery.
On January 23, Insurance Commissioner Ricardo Lara issued an order directing insurers to provide advance payments for personal property or contents without requiring itemized claims. These payments were capped at 30% of a policy’s dwelling limit, up to $250,000. Insurers were also instructed to pay at least four months’ worth of living expenses as an advance.
The remaining unpaid claims primarily involve property damage and debris removal, which will be processed when policyholders begin rebuilding. Lara emphasized the importance of the dashboard in providing transparency and combating misinformation.
“All eyes are on the insurance companies, and so are mine,” he said. “I want consumers to know that we are closely monitoring the entire claims process to ensure they are protected.”
The dashboard gathers data from a range of carriers, including the California FAIR Plan, which insures properties that other providers will not cover. Concerning the recent fires, the FAIR Plan has received over 4,400 claims, with 3,200 linked to the Palisades Fire and 1,200 to the Eaton Fire.
The dashboard gathers data from a range of carriers, including the California FAIR Plan, which insures properties that other providers will not cover. In relation to the recent fires, the FAIR Plan has received over 4,400 claims, with 3,200 linked to the Palisades Fire and 1,200 to the Eaton Fire, as of January 28. The claims vary in type and coverage, and all claims have been assigned to examiners. The FAIR Plan has a total exposure of approximately $4.8 billion for these fires, with $4 billion related to the Palisades Fire and $775 million for the Eaton Fire.
The FAIR Plan, which serves as the state’s insurer of last resort, has increased its staffing levels to manage the surge in claims. It has expanded its team with 250 desk examiners, field adjusters and additional customer service representatives, as well as third-party catastrophe adjusters to handle the increased demand.
Industry leaders have also raised concerns about the sustainability of California’s wildfire insurance strategy.
During a fourth-quarter conference call, Chubb CEO Evan G. Greenberg noted that the state’s current risk approach is unsustainable.
Meanwhile, the CDI and state lawmakers are working on regulations aimed at stabilizing the FAIR Plan and increasing transparency. Lara’s Sustainable Insurance Strategy, introduced in October 2024, seeks to enhance insurance access, improve market resilience and protect communities from climate change impacts.
The American Property Casualty Insurance Association (APCIA) expressed support for Lara’s plan while acknowledging the imbalance in the state’s insurance market prior to the fires. David Sampson, president and CEO of APCIA, also emphasized the need for reforms to maintain the FAIR Plan as a viable safety net and restore balance to the market.
