https://www.ocregister.com/2023/05/26/state-farm-says-no-new-property-insurance-clients-in-california/
Instead, the DOI is focusing on protecting consumers through its Safer from Wildfires discount program, Soller said.
Established in October 2022 and touted as a first of its kind, the state program requires insurance providers to discount policies for property owners who mitigate wildfire threats by installing fire-rated roofs, enclosing eaves and creating ember-resistant zones. Insurance companies have 180 days to submit a wildfire risk assessment or score, which the state can appeal.
Property insurers in recent years have pulled coverage from tens of thousands of homeowners across the state in the wake of devastating wildfires.
DOI Commissioner Ricardo Lara in September 2022 invoked a law signed in 2018 by then-Gov. Jerry Brown prohibiting insurance providers from canceling or refusing to renew plans for properties affected by wildfires until 12 months after the fire.
A moratorium on insurance price increases during the pandemic only heightened tension within the insurance industry.
Risks are getting worse, and rates are going to have to go up to ensure insurers are solvent and operational in California, Seren Taylor, a senior legislative advocate with the Personal Insurance Federation of California, told the Bay Area News Group in August 2022.
https://www.bloomberg.com/news/articles/2022-10-19/california-becomes-first-in-us-to-mandate-wildfire-insurance-discounts
The California Department of Insurance has issued rules that require insurers to offer discounts to property owners for reducing wildfire risk, which its calling the first of its kind in the US.
This week, the agency in partnership with Governor Gavin Newsoms administration released Safer From Wildfires guidelines detailing steps that can be taken to get the discounts. These include protecting homes and businesses with Class A fire-rated roofs, creating ember-resistant zones by clearing vegetation and flammable debris, and establishing a community evacuation plan.
tl;dr: price controls made it non-viable for insurance companies to operate in the state.