HomeMy WebLinkAboutAgenda Package - StudySession_Mar13_2025
PALM DESERT CITY COUNCIL
STUDY SESSION MEETING
AGENDA
Thursday, March 13, 2025
3:30 p.m.
Council Chamber, City Hall
73-510 Fred Waring Drive
Palm Desert, California
NOTICE IS HEREBY GIVEN that the purpose of the Study Session is to review the items listed on the
agenda. No action will be taken.
This is a joint meeting of the Palm Desert City Council, Successor Agency to the Palm Desert
Redevelopment Agency, Palm Desert Housing Authority, and Palm Desert Board of Library Trustees.
Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting allowing public
access via teleconference or in person, and up to two Councilmembers may attend remotely.
WATCH THE MEETING LIVE: Watch the City Council meeting live at the City’s website:
https://palmdesert.zoom.us/ or on the City's YouTube Channel.
OPTIONS FOR PARTICIPATING IN THIS MEETING:
Send your comments by email to: CityClerk@palmdesert.gov.
Emails received prior to 10:00 a.m. on the day of the City Council meeting will be made part of the
record and distributed to the City Council. Emails will not be read aloud at the meeting.
Pages
1.CALL TO ORDER - STUDY SESSION
2.STUDY SESSION TOPICS
2.a PRESENTATION BY THE CALIFORNIA DEPARTMENT OF INSURANCE
ON PROGRAMS AND RESOURCES
3
RECOMMENDATION:
Receive a presentation from the California Department of Insurance on
programs and resources.
3.ADJOURNMENT
4.PUBLIC NOTICES
NOTE: Pursuant to Assembly Bill 2449, this meeting may be conducted by
teleconference. Study Session is accessible in person or on the City’s website:
www.palmdesert.gov under the Council Agenda link at the top of the page.
Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the
designated office for inspection of records in connection with this meeting is the
Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive,
Palm Desert. Staff reports for all agenda items considered in open session, and
documents provided to a majority of the legislative bodies are available for
public inspection at City Hall and on the City’s website at www.palmdesert.gov
by clicking “Meeting Agendas” at the top of the page.
Americans with Disabilities Act: It is the intention of the City of Palm Desert to
comply with the Americans with Disabilities Act (ADA) in all respects. If, as an
attendee or a participant at this meeting, or in meetings on a regular basis, you
will need special assistance beyond what is normally provided, the City will
attempt to accommodate you in every reasonable manner. Please contact the
Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to
inform us of your needs and to determine if accommodation is feasible.
AFFIDAVIT OF POSTING
I, Michelle Nance, Acting Assistant City Clerk of the City of Palm Desert, do
hereby certify, under penalty of perjury under the laws of the State of California,
that the foregoing agenda for the Palm Desert City Council, Successor Agency
for the Palm Desert Redevelopment Agency, and Housing Authority, was posted
on the City Hall bulletin board and City website www.palmdesert.gov no less
than 72 hours prior to the meeting.
/S/ Michelle Nance
Acting Assistant City Clerk
City Council Study Session
2
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: March 13, 2025
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: PRESENTATION BY THE CALIFORNIA DEPARTMENT OF INSURANCE
ON PROGRAMS AND RESOURCES
RECOMMENDATION:
Receive a presentation from the California Department of Insurance on programs and resources.
BACKGROUND:
At the request of Councilmember Quintanilla, supported by Mayor Harnik, staff has coordinated
a presentation from the California Department of Insurance regarding programs and resources
available to residents.
FINANCIAL IMPACT:
There is no financial impact associated with this presentation.
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4
California Department
Of Insurance
Judith Pina
Outreach Specialist
Community Relations and Outreach Branch
15
Sustainable Insurance Strategy
Insurance at a Crossroads in California
Growing climate change threats
Historic inflation
Several insurers stopped writing and
non-renewing policyholders despite
approval of multiple rate increases
Accelerated FAIR Plan growth
Fewer options and higher costs
Outdated decades-old regulations
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6
Proposition 103 ~ Brief Overview
California voters passed
Prop. 103 in 1988,
requiring every property
and casualty insurer
seeking to change its
rates to obtain elected
Insurance Commissioner’s
prior approval
Insurance Commissioner
has a responsibility to
ensure that approved
insurance rates are not
“excessive, inadequate,
unfairly discriminatory”
All information provided
to Insurance Commissioner
in rate review process
must be available for
public inspection
California is only state
that requires rate filings
to be open for public
participation in rate
review process
3Sustainable Insurance Strategy 7
Current Rate Review Process
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By statute under Prop. 103, Department must approve rate applications within 180 days upon receipt
However, delays largely due to:
Insurers not submitting all
necessary and complete
information needed to
support rate application
and justify rate need
Intervenor delays
Outdated technology to
reconcile data between
Department and insurers
Department has been hiring additional staff and re-directing vacancies to meet needs, in addition to
Complete Rate Application regulation, intervenor transparency reforms, and filing timing/process efficiencies
Sustainable Insurance Strategy
Department staff
bandwidth and continued
review of successive
+6.9% rate increase
requests from insurers
8
5
Streamline and improve Department’s
rate application approval process
Introduce new risk management
tools in ratemaking –Catastrophe
Modeling and Reinsurance Costs
Insurer commitments to write more
policies in wildfire distressed areas
and reduce FAIR Plan policies
Strengthen and Modernize FAIR Plan
Sustainable Insurance Strategy
Governor’s
Executive Order N-
13-23
To Strengthen
Property Insurance
Market
Insurance
Commissioner’s
Sustainable
Insurance
Strategy
(Announced September 2023)
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California
Consumers
Benefit with
Insurers
Increasing
Writings in State
New regulations create pathways for this commitment
to write for large companies, small to midsize companies,
and new entrants into California insurance marketplace
Insurance companies must commit to writing policies
in high wildfire areas –which they are not legally
required to do today
Goal of achieving greater insurance availability for
consumers, including decrease in amount of FAIR Plan
policies that go back into admitted insurance market
Sustainable Insurance Strategy 410
California had to:
Develop regulations to allow the use of catastrophe models in
ratemaking while meeting Prop. 103 mandate for public review
and transparency in addition to recognizing proprietary material
contained in such models
Develop the process for incorporating catastrophe models into
actuarial formulas in insurer rate filings
Identify “Distressed Areas“that the Department expects insurers
to commit to writing more policies in before allowing them to
incorporate the use of catastrophe models in ratemaking
•Use of historical losses are not as accurate, and do
not take parcel-level and community-wide mitigation
efforts into account
•While majority of other states allow the use of private
catastrophe models in ratemaking, California cannot
introduce such use without meeting the public
transparency requirements of Prop. 103.
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3
Introduction of Catastrophe Modeling
Sustainable Insurance Strategy 7
11
Insurers commit to
writing more
policies in distressed
areas before
allowing them to
incorporate
California-only
reinsurance costs in
ratemaking
Reinsurance
in
Ratemaking
Insurers paying
more to manage
growing natural
climate disaster
losses and need to
accurately reflect
growing costs of
writing insurance in
California
Goal is to increase
insurance
availability to
Californians
across state
Sustainable Insurance Strategy 8
12
Historic consensus between Insurance
Commissioner, FAIR Plan, and admitted market
insurers
More –yet temporary –comprehensive
coverage with new $20 Million commercial
coverage per structure with overall limit of $100
million for larger HOAs, housing developers, and
larger businesses
Necessary solvency protections added for FAIR
Plan and participating admitted market insurers
Increased public reporting for accountability
Modernizing FAIR Plan
Sustainable Insurance Strategy 9
13
Safer from Wildfires Framework gives you
specific steps you can take to mitigate your risk
and help you obtain insurance
Catastrophe models are now being submitted for
review –Verisk and Moody’s are being reviewed
now with more expected in months
Insurance companies will need to submit
complete rate applications
Insurance Companies expected to have new
policies available mid 2025
What’s Next
Sustainable Insurance Strategy 10
14
•Sign up for our Community Outreach and Education Partnership Initiative at
https://www.surveymonkey.com/r/VHGZQHT
•This dynamic program is designed to increase consumer awareness about CDI's services and expand understanding of key insurance topics and fraud prevention.
•Get access to:
•Comprehensive consumer education materials
•Specialized training sessions ( First webinar on January 31st,2025)
•Powerful social media tools
How to Partner with Us
Sustainable Insurance Strategy 11
15
•This initiative highlights the critical role of insurance in mitigating risks and enhancing resilience, offering key concepts, innovative solutions, and funding strategies to help communities adapt.
•10 page local planning guide, flyers, 4 part webinar series, resource portal on our webpage
•Part 1 of Webinar Series: The Impact of Extreme Weather on February 26th, 2025
•Part 2 of the Webinar Series:
Local Government Climate
Planning April 9th
Local Climate Planning Initiative
Sustainable Insurance Strategy 12
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