Insurance: Climate and Sustainability Insurance and Risk Reduction Grant Program.

Assembly Member Celeste Rodriguez's proposal to establish the Climate and Sustainability Insurance and Risk Reduction Grant Program aims to address California's widening insurance protection gap amid intensifying climate risks. The Department of Insurance would administer this grant program to develop innovative insurance solutions, particularly for communities facing extreme heat, wildfire risks, and flooding.

The program focuses on testing new insurance mechanisms, including community-purchased and parametric insurance models, to expand coverage options in vulnerable and disadvantaged communities. It emphasizes regional and community-scale approaches to risk reduction, incorporating nature-based solutions that provide both risk mitigation and ecosystem benefits. The initiative also includes provisions for creating climate resilience districts and educating communities about insurance's role in disaster preparedness and recovery.

Under the bill's requirements, the Department must report to legislative insurance committees by January 1, 2029, and every three years thereafter, detailing program results and lessons learned for strengthening the state's climate resilience approach. The program would operate through January 1, 2035, when its authorizing provisions expire. While the bill establishes the program's framework, its implementation depends on future legislative appropriations to fund the grants.