California Insurance Commissioner candidate Stacey Korsgaden has summed up the deepening crisis rippling across the state’s economy.
“California is not insurable right now,” she said while appearing on the AgNet News Network, an agriculture-focused news outlet.
She said farmers, small businesses and homeowners are increasingly increasingly unable to secure or afford coverage.
Her comments comes as regulators in the Golden State move to fine and potentially revoke the license of State Farm over alleged mishandling of claims tied to the 2025 wildfires, which killed at least 31 people.
Speaking on the AgNet News Hour, Korsgaden painted a troubling picture of an insurance market under strain, where premiums are rising rapidly and, in some cases, policies are disappearing altogether.
“Insurance has gone up… or you can’t even get a policy,” she said, echoing concerns she hears from business owners and residents across California.
The issue is hitting the state’s agricultural sector especially hard.
Farmers already grappling with rising costs for labor, water and supplies are now facing steep increases in insurance expenses covering crops, equipment, vehicles and workers.
For some, coverage is no longer a viable option, leaving operations exposed to significant financial risk.
Korsgaden attributes much of the crisis to long-standing regulatory and policy decisions that she argues have made California a difficult place for insurers to operate.
As requirements have tightened, she said, companies have scaled back their presence or exited the market entirely.
“Insurance companies are looking at the restrictions… and they’re pulling back,” she said.
That retreat has pushed more property owners toward the state’s FAIR Plan, originally intended as a safety net for those unable to find private coverage.
Now, however, it is becoming a primary option for a growing number of Californians who have nowhere else to turn.
Beyond regulation, broader risks are also shaping the market.
Wildfires, crime and challenges tied to land and forest management have made it harder for insurers to accurately assess and price risk.
When uncertainty rises, companies often respond by limiting exposure or withdrawing coverage altogether.
Korsgaden also pointed to what she sees as a leadership gap, noting that California has not had an insurance commissioner with industry experience in decades. She argues that a deeper understanding of how insurers operate is critical to stabilizing the market.
“I understand insurance… and I know how to fix it,” she said.
Among the solutions she outlined are efforts to bring insurers back into California, reduce regulatory bottlenecks and rebuild collaboration between state officials and private companies to restore competition.
Korsgaden is a licensed insurance professional and small business owner, running a Republican for insurance commissioner, campaigning on expanding competition and building a marketplace she says works for consumers rather than bureaucracy.
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