Mercury Insurance announced on January 7, 2025, that it would begin writing new homeowners insurance policies in Paradise, California, becoming the first major insurer to do so since the devastating Camp Fire in November 2018.
This strategic re-entry was made possible by the California Department of Insurance Commissioner Ricardo Lara's 'Sustainable Insurance Strategy,' which allows insurers to incorporate catastrophe modeling and reinsurance costs into rate-making.
The decision also reflects the significant efforts by Paradise city officials and residents to reduce wildfire risk through innovative urban planning and mitigation strategies, including updating building ordinances to require new homes to meet the IBHS Wildfire Prepared Home standard.
Mercury's President and Chief Operating Officer, Victor Joseph, stated that the company's return is a direct result of the Commissioner's strategy and Governor Gavin Newsom's leadership in wildfire management, positioning Paradise as a model for other cities facing similar challenges.
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