Insurance commissioner candidate reveals how he’ll rip up the system

Republican candidate for California Insurance Commissioner Stacy Korsgaden has warned that she will crack down on insurance fraud and conduct a full audit of the California Department of Insurance if elected.

“The reason I’m running is that we have a situation that I can no longer stand back and watch, not knowing the policies that are used in the entire state. That’s why I’m running,” he said while speaking at a town hall last week in Tuolumne County.

Korsgaden, one of 11 candidates to replace California Insurance Commissioner Ricardo Lara, spoke at the Tuolumne Resilience Center during an event hosted by Tuolumne County Supervisor Steve Griefer.

The Republican candidate highlighted his decades of experience in the insurance industry, saying he studied at California Polytechnic State University, San Luis Obispo, before launching an insurance agency that he later sold in 2023 after it grew into a nationally known business.

Korsgaden said California’s insurance crisis has been building for decades, pointing to laws created under Proposition 103, a 1988 voter-approved law that expanded oversight of the insurance industry.

While he said the move was intended to protect consumers, Korsgaden said the state’s regulatory environment ended up being too restrictive and contributing to higher premiums and fewer insurers operating in California.

He said the situation came to a head in 2023 when major insurers, including State Farm, stopped writing new homeowner policies in California, creating what he described as a market-wide negative effect and forcing many residents out of the state’s FAIR Plan insurance program.

Korsgaden said another priority for him will be luring more insurance carriers back to California to increase competition and stabilize rates.

As part of that effort, he proposed creating a new structure within the Department of Insurance focused on encouraging new investment and helping more insurance companies enter the California market.

He also pledged to aggressively pursue insurance fraud investigations and review the department’s spending and operations to improve efficiency.

His comments come as Golden State officials seek to fine and possibly revoke State Farm’s license for allegedly mishandling claims related to the 2025 wildfires, which killed at least 31 people.

Korsgaden discussed ongoing wildfire prevention work in the region and argued that communities investing in fuel reduction and fire mitigation efforts should receive insurance incentives.

Korsgaden praised those local efforts and told those in attendance that Tuolumne County would be among his first priorities if elected.

“You will be the first county I will come and see, and I will bring the insurance companies here,” he said.

During the forum, Korsgaden also voiced support for financial assistance programs aimed at helping homeowners pay for fire resiliency upgrades, including potential tax rebates and more federal funding for wildfire mitigation projects.

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