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East County News Service
Photo: The Little Hoover Commission, formally known as the Milton Marks “Little Hoover” Commission on California State Government Organization and Economy, is an independent state oversight agency created in 1962.
May 17, 2024 (Sacramento) -- In a stark warning at a Little Hoover Commission hearing on California’s homeowners insurance market, former California Insurance Commissioner and Director of UC Berkeley’s Climate Risk Initiative Dave Jones voiced concerns over the future availability of homeowners insurance in California’s fire-prone regions.
“I believe we’re marching steadily towards an uninsurable future because we’re not acting aggressively and fast enough to reduce greenhouse gas emissions globally and in this country,” Jones testified.
California’s growing population in high-risk areas, the escalating costs of replacing structures destroyed by wildfires, and an increase in billion-dollar weather and climate disasters paint a grim picture for investors, he said. The severity of recent fires, driven in part by forest mismanagement and aggravated by climate change, exacerbates the risk.
Jones comments echo the findings of the Little Hoover Commission’s 2018 report, “Fire on the Mountain: Rethinking Forest Management in the Sierra Nevada.” The report called for a dramatic culture change in the way California’s forests are managed in order to curb a disastrous cycle of wildfire and tree death. At the same time, the report noted limitations on the state’s role, since the state owns only about 2 percent of state forestlands. The vast majority of California’s forestland is owned by the federal government or private owners.
In its report, the Commission detailed how poor forest health increases the risk of severe wildfires and water quality degradation in Sierra Nevada watersheds. Jones reiterated these environmental consequences, and explained that they strain insurance markets by amplifying risks and potential losses.
The Commission recommended a multipronged approach to restore and maintain forest health and resiliency, including:
- Increasing the Pace and Scale of Forest Restoration through Collaboration. The Commission urged expanding and accelerating collaboration with the federal government, which owns most of the forests in California. This includes additional funding for prescribed fire crews and forest administrators. Additionally, the Commission urged the state to facilitate collaboration among stakeholders with diverging views, providing an example of how it has happened successfully.
- Creating a Culture where Fire is a Tool, Not a Threat. The Commission recommended integrating controlled burns into forest health strategies at all levels of government, and educating the public on the benefits of prescribed fire.
- Developing a Long-Term Plan for Forest Materials. To generate income to help pay for forest management, the Commission encouraged the state to promote the expansion of in-state wood products manufacturing. It also endorsed investigating how new technologies and wood products could safely be integrated into California’s building codes for more carbon-neutral construction.
To read the full forest management report and find more information about the Commission’s work on the subject, please visit the Commission’s website here.
To watch former Insurance Commissioner Jones’ testimony and find more information about the Commission’s ongoing homeowners insurance study, please visit the Commission’s website here.
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