California Insurance Industry – Governance, Risk and Compliance

The California insurance industry is regulated by the CDI which was created in 1868. The California insurance industry research report provides a detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation, and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report also gives insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation, and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

California Insurance Industry Dynamics

The CDI, which was created in 1868, has undergone many changes since its inception. In 1988, Proposition 103 was passed which significantly broadened the responsibility of the CDI, especially in property and casualty insurance. Proposition 103 mandated that the insurance rates for property and casualty insurance contracts should be pre-approved by the CDI before taking effect. During the early 1990s, anti-fraud insurance legislation was passed by the state legislature which transformed the CDI into a new enforcement agency.

The main function of CDI is providing fair, excellent, and responsive services to customers, promoting innovation and professional growth, valuing resources, and using them wisely among many others.

California Insurance Industry Segmentation by Legislations

The key legislations in the California insurance industry are The Insurance Code, California Insurance Regulations, and Unemployment Insurance Code.

California Insurance Industry Segmentation by License Types

The key types of licenses issued in the California insurance industry are life insurance, non-life insurance, license for insurance intermediaries, and license for reinsurance.

Life insurance: Insurers with a life insurance license can underwrite and sell insurance contracts related to risks such as life and annuities.

Non-life insurance: Non-life insurers underwrite and sell contracts related to fire, marine, surety, disability, plate glass, liability, workers’ compensation, common carrier liability, boiler and machinery, burglary, credit, sprinkler, team and vehicle, automobile, aircraft, mortgage guaranty, insolvency, legal insurance and miscellaneous.

California Insurance Industry Segmentation by Key Bodies

The key bodies that oversee the California insurance industry are the International Association of Insurance Supervisors (IAIS), National Association of Insurance Commissioners (NAIC), Federal Insurance Office (FIO), National Association of Mutual Insurance Companies (NAMIC), American Property Casualty Insurance Association (APCIA), Reinsurance Association of America (RAA), California Department of Insurance (CDI), Association of California Life and Health Insurance Companies (ACLHIC), and Personal Insurance Federation of California (PIFC).

International Association of Insurance Supervisors: The IAIS is a membership-driven global organization that represents insurance regulators and supervisors. It formulates and issues various global insurance principles, standards, and guidance, provides training and support on issues related to insurance supervision, and organizes meetings and seminars for insurance supervisors. The IAIS works closely with other financial sector standard-setting bodies and international organizations to promote financial stability.

National Association of Insurance Commissioners (NAIC): The NAIC (content.naic.org) is a voluntary association that was created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five US territories. It was created in 1871 to address the need to coordinate the regulation of multistate insurers.

American Property Casualty Insurance Association (APCIA): The APCIA (www.apci.org) was established in 2019 as a result of the merger of the American Insurance Association (AIA) with the Property Casualty Insurance Association of America (PCI). The APCIA promotes and provides a healthy competitive insurance industry for the benefit of consumers and insurers.

California Department of Insurance (CDI): Insurance in California is regulated by the CDI, which was created in 1868. It has undergone many changes since its inception. In 1988, Proposition 103 was passed which significantly broadened the responsibility of the CDI, especially in property and casualty insurance. Proposition 103 mandated that the insurance rates for property and casualty insurance contracts should be pre-approved by the CDI before taking effect.

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California Insurance Industry Report Overview

Scope

This report provides:

• Details of the insurance regulatory framework in California
• Details of the rules and regulations governing insurance products and insurance entities
• Lists and analysis of key trends and developments pertaining to the country’s insurance regulatory framework
• Analysis of the rules and regulations pertaining to the establishment and operation of insurance businesses in the country
• Details of the taxation imposed on insurance products and insurance companies

Reasons to Buy

• Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country.
• Gain insights into the insurance regulatory framework in California.
• Track the latest regulatory changes and expected changes impacting the California insurance industry.
• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
• Understand key regulations and market practices pertaining to various types of insurance products.