As California grapples with rising insurance premiums and widespread policy non-renewals, Insurance Commissioner Ricardo Lara has introduced a long-overdue package of reforms aimed at modernizing the state’s unique intervenor process. These changes mark a critical step toward restoring fairness and transparency in the insurance market, especially for communities already burdened by housing affordability challenges.

Historically, the intervenor process, established under Proposition 103 in 1988 was designed to empower public participation in insurance rate reviews. However, over time, it became opaque and monopolized, with hidden fees quietly passed on to consumers and limited oversight over who could intervene and how compensation was awarded.

Commissioner Lara’s reforms seek to:

Clarify the “substantial contribution” standard for awarding intervenor compensation, ensuring it supports meaningful public engagement in proceedings.

Mandate public reporting on intervenor activities and compensation to enhance transparency and accountability.

Set clear timelines and responsibilities for administrative law judges, including a requirement to provide public status updates every 30 days on pending cases, keeping the public informed of case progress.

Require the Department to publish public documents online—such as hearing calendars and decisions—making them easily accessible to all Californians and replacing outdated physical viewing rooms.

These reforms promise to make the insurance rate-setting process more inclusive, efficient, and responsive to the needs of Californians especially those in vulnerable housing situations who are disproportionately impacted by insurance instability.