Many of the victims of January's LA wildfires were uninsured or underinsured. (Credit: Andy/Adobe Stock)
A bill that would fund innovative insurance solutions to help reduce climate risks and increase coverage for Californians is making its way through the state assembly.
Assembly Bill 1236, authored by Assemblymember Celeste Rodriguez, would establish the Climate and Sustainability Insurance and Risk Reduction Program. The program, run by the California Department of Insurance, would distribute grants to support projects that reduce climate-related risks and shrink the protection gap in the state.
The program plans to support projects like parametric and community-based insurance options, nature-based solutions that reduce risk and enhance ecosystems and community education programs about the importance of insurance.
“Communities in our state deserve resources and investments to ensure they can withstand and recover from climate disasters,” Rodriguez said in a statement. “AB 1236 creates a grant program to deliver projects and explore innovative approaches to reduce risk, and ultimately, expand insurance coverage options in a time when it is desperately needed.”
The bill has the support of the American Property Casualty Insurance Association (APCIA) and the National Association of Mutual Insurance Companies (NAMIC) as well as organizations including the Nature Conservancy, the University of California Santa Cruz and the Environmental Defense Fund.
“Nature-based solutions can significantly reduce disaster risk, which can increase availability and lower the cost of insurance,” said Michael Jarred, associate director at The Nature Conservancy, said in a statement. “For example, wetlands can reduce storm surges to coastal areas, thinning and applied fire can reduce wildfire risk in forested areas and setback levees with multiple benefits to reduce flooding,”
The bill passed the Assembly Insurance Committee yesterday and moves to the Assembly Appropriations Committee next.
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