Stacey Korsgarden, a candidate for California Insurance Commissioner, highlighted the growing crisis affecting the state’s economy. She stated, “California is currently uninsurable,” during her appearance on AgNet News Network, which focuses on agriculture news.
Korsgarden pointed out that farmers, small business owners, and homeowners are increasingly finding it hard to obtain or afford insurance. Her remarks come amid actions by regulators in California to potentially fine and revoke State Farm’s license over alleged mishandling of claims related to the wildfires in 2025, which claimed at least 31 lives.
On the AgNet News Hour, Korsgarden expressed concern about the insurance market, noting that premiums are rising quickly, and in some instances, insurance policies are vanishing altogether. She said, “Premiums have gone up…or you wouldn’t even be able to get insurance,” which reflects the worries she’s heard from various residents and business owners across the state.
The state’s agricultural sector is feeling the pinch particularly hard. Farmers, already grappling with increasing costs related to labor, water, and supplies, are now facing significant hikes in insurance prices to cover their crops, equipment, vehicles, and workforce.
For some, insurance is becoming an unaffordable luxury, leaving them with substantial financial risks. Korsgarden attributes much of the crisis to years of regulatory measures and policy decisions that complicate operations for insurance companies in California.
She noted, “Insurance companies are looking at restrictions and are pulling back,” suggesting that as requirements tighten, many companies are either scaling down or exiting the market altogether.
As a result, more property owners are turning to the state’s FAIR plan, which was initially designed as a fallback for those unable to secure private insurance, but it’s increasingly becoming the main option for a growing number of Californians with limited choices.
Additionally, broader challenges, including issues related to wildfires, crime, and land management, complicate the ability for insurance companies to accurately evaluate and price risks. When uncertainty rises, companies often curb their exposure or withdraw their coverage entirely.
Korsgarden also pointed out a notable lack of leadership in the insurance sector, arguing that California has not had an insurance commissioner with industry experience for decades. She believes that a better understanding of how insurance companies function is crucial for stabilizing the market.
“I understand insurance…and I know how to fix it,” Korsgarden claimed. She proposed several solutions to entice insurers back to California, reduce regulatory hurdles, and foster better cooperation between state regulators and the private sector to restore competition.
Korsgarden, who has a background as a licensed insurance professional and small business owner, is running as a Republican, advocating for a competitive market that prioritizes consumers rather than bureaucratic processes.
