California Insurance Department's Intervenor Program Reform in 2025

The California Department of Insurance has released data showing that Consumer Watchdog received almost all the funds from the state’s intervenor compensation program in 2025. Based in Santa Monica, the organization was allocated $1,427,280.80, making up 96.78% of the total funds for that year. This allocation significantly exceeds the $643,530.15 awarded in 2024, reflecting its strong influence within insurance regulatory frameworks.

Consumer Watchdog has been pivotal in shaping the intervenor fee program, allowing groups to charge for involvement in insurance rate filings. With billing rates reaching up to $650 per hour, the organization has amassed over $11.2 million from the program since 2013. Critics highlight that these costs are likely passed to ratepayers, underscoring the need for enhanced compliance and regulatory reforms to ensure fair carrier practices.

Reforming the Intervenor Program

Insurance Commissioner Ricardo Lara advocates for reforms to introduce diversity among recipients while enhancing consumer protection. The proposed changes aim to increase accountability for insurance companies, ensuring that rate assessments are timely and fact-based. Industry and consumer leaders have backed these reforms to curb exploitation and promote a stable insurance market in California.

Delays in rate reviews, as shown by Perr & Knight's analyses exceeding 100 days for homeowners insurance and over 200 days for auto claims, have raised regulatory concerns. Critics argue that current delays discourage insurers from operating in California, providing little advantage to consumers. Nicole Mahrt-Ganley of the American Property Casualty Insurance Association emphasized the essential nature of aligning incentives with consumer interests for effective risk management in the market.