Zurich US has submitted a commercial property insurance rate filing under California’s Sustainable Insurance Strategy. It is one of the first large commercial carriers to join the state’s effort to stabilize its insurance market.
The strategy was created by California Insurance Commissioner Ricardo Lara. It is designed to expand the availability of residential and commercial property insurance in higher-risk and underserved areas across the state.
Under the filing, Zurich has committed to increase insured commercial property locations in areas the California Department of Insurance has designated as “distressed.” The company said the commitment aligns with the strategy’s core objective of expanding coverage in those regions.
“California is an important market for Zurich, and we are committed to supporting solutions that strengthen the availability of insurance while maintaining a disciplined approach to risk,” said Peter Caminiti, chief underwriting officer for Zurich US. He said the company would continue working with customers on investments in risk mitigation.
Zurich’s filing comes as California’s admitted market undergoes its most significant regulatory overhaul since Proposition 103. Carriers can now use forward-looking catastrophe models in rate filings and factor reinsurance costs into premiums.
California’s surplus lines sector has grown from roughly 6% of the commercial market in 2014 to nearly 20% today. That shift reflects how far the admitted market has pulled back.
The scale of that retreat is visible in FAIR Plan data. Enrollment jumped 43% between September 2024 and December 2025, following the LA wildfires that destroyed 12,000 homes. Statewide, FAIR Plan dwelling policies more than doubled over four years. Total exposure reached $458 billion.
The claims environment driving that enrollment has been severe. Insurers paid more than $22.4 billion across 42,121 wildfire claims following the 2025 Palisades and Eaton fires, per California Department of Insurance data. Those losses have reinforced the urgency of drawing admitted carriers back into distressed areas.
Zurich plans to pursue measured growth across selected commercial segments in wildfire-distressed areas. Target sectors include real estate, financial institutions, professional services, manufacturing, technology, and life sciences.
Zurich makes risk engineering services available through its Zurich Resilience Solutions unit to help customers build resilience against severe weather, wildfire hazards, and other risks.
Zurich is not the only carrier moving in this direction. Six major insurers have sought rate increases in exchange for commitments to write more business in wildfire-distressed areas. CSAA Insurance Group has already written 18,300 more policies in high-hazard areas than regulators required. Mercury General has set a 15% growth target in high-risk areas.
The company will also evaluate new and renewal business in other capacity-constrained areas. Established underwriting criteria around risk selection and resilience will guide those decisions.
The filing is subject to regulatory review and approval. The strategy is drawing carriers back into distressed areas, but the FAIR Plan’s $458 billion exposure and $22.4 billion in recent wildfire claims signal that California’s market remains far from stable.
