Core Viewpoint - Mercury Insurance is expanding its homeowners insurance options in California, particularly for those in high wildfire risk areas, by submitting a new rate filing based on the State's Sustainable Insurance Strategy, utilizing the Verisk Wildfire catastrophe model to assess future wildfire impacts [1][2][3] Group 1: Rate Filing and Coverage Expansion - The new rate filing proposes an overall average rate increase of 6.9%, driven by inflationary pressures and exposure to catastrophic events like wildfires [3] - The rate increase will not be uniform; higher risk areas may experience larger increases, while lower risk areas could see decreases [3] - Mercury is introducing discounts to help mitigate increases for customers in higher risk areas, potentially saving up to one-third on the wildfire portion of their premium [4][7] Group 2: Commitment to California Homeowners - Mercury's CEO emphasized the company's commitment to providing more insurance options for California homeowners, especially as other insurers reduce their presence in the state [3] - The new plan aims to offer comprehensive coverage options beyond the limited California FAIR Plan, which has been the last resort for homeowners in high-risk areas [2][4] Group 3: Community and Risk Mitigation - Homeowners who take proactive steps to reduce wildfire risks, such as vegetation clearance and using fire-resistant materials, will benefit from expanded discounts [7] - Living in a fire-prepared community that collectively manages wildfire exposure will also provide additional discounts for homeowners [7]

Group 1 - Commissioner Lara's Sustainable Insurance Strategy aims to enhance the insurance marketplace in California by enabling science-based risk modeling, which will provide homeowners with more insurance options [1][2] - Mercury Insurance is preparing to file for homeowners insurance rates using the California Department of Insurance's approved Verisk Wildfire Model, reflecting the implementation of the Sustainable Insurance Strategy [1] - The strategy has already allowed Mercury Insurance to write new policies in Paradise, CA, a town affected by a wildfire in 2018, showcasing the potential for growth in wildfire-prone areas [2] Group 2 - Mercury Insurance is a multi-line insurance carrier offering personal auto, homeowners, and renters insurance across several states, including California [3] - The company has been recognized for its competitive rates and excellent customer service, employing over 4,200 staff and working with more than 6,340 independent agents [4] - Mercury Insurance has received an "A" rating from A.M. Best and accolades as a "Best Auto Insurance Company" from Forbes and Insure.com [4]