In the last several months, multiple insurance companies have stopped selling homeowner policies in California, with some even pulling out of the state entirely.
Now, a consumer advocacy organization is alleging that their actions constitute unlawful collusion—and it’s calling on California Attorney General Rob Bonta to investigate.
In a letter sent Tuesday to Bonta’s office, Consumer Watchdog alleged that insurance companies and their lobbyists coordinated the insurers’ rapid retreat from California. That violates state and federal antitrust laws, the organization said.
Their insurers’ alleged goal? To force California lawmakers to grant them greater freedom to raise rates in the waning days of the legislative session.
“Consumer Watchdog believes that insurance companies are colluding to make insurance unavailable in California to boost the price of insurance and pressure policymakers to change California law to allow insurance companies to charge excessive rates,” the organization said in the letter to Bonta.
The organization said it has learned from insurance industry insiders that this collusion takes place in meetings of industry lobbying organizations the Personal Insurance Federation of California and the American Property Casualty Insurance Association.
In a statement to The Standard, the American Property Casualty Insurance Association criticized Consumer Watchdog’s actions…
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Article URL : https://sfstandard.com/2023/09/05/consumer-advocate-sees-collusion-california-insurance-crisis/