California Intervenor Program Under Fire: Reform Needed for Fairness

California Department of Insurance Intervenor Program Faces Scrutiny

The California Department of Insurance (CDI) revealed in January 2026 that Consumer Watchdog, an advocacy group based in Santa Monica, received over $1.4 million from the state's intervenor compensation program in 2025. This sum accounts for a staggering 97% of the total funds distributed, highlighting a potential imbalance in the program's benefits.

The intervenor program, established under Proposition 103, allows various entities to engage in insurance rate proceedings with the aim of representing consumer interests. However, critics argue that Consumer Watchdog has disproportionately benefited from this system, collecting over $11.2 million since 2013. These fees are ultimately borne by ratepayers, raising concerns about potential industry impact and payer accountability.

Calls for Reform and Market Implications

In response to these concerns, CDI Commissioner Ricardo Lara has proposed reforms intended to broaden participation and enhance regulatory compliance. These changes aim to protect consumer interests, improve carrier accountability, and expedite rate evaluations. A coalition of California industry and consumer leaders supports these reforms, suggesting they could stabilize the insurance market.

Opposition remains, particularly from the program's main beneficiaries, amid criticisms of the program's efficiency. An actuarial analysis by Perr & Knight highlights delays exceeding 100 days for homeowners insurance and over 200 days for auto insurance, illustrating challenges within risk management and claims processing. Critics, including Nicole Mahrt-Ganley of the American Property Casualty Insurance Association (APCIA), argue that Consumer Watchdog's role has exacerbated market difficulties, impacting consumer access to essential coverage.