Bill > AB1236

This bill establishes the Climate and Sustainability Insurance and Risk Reduction Grant Program within the California Department of Insurance to address the growing challenges of climate change and insurance accessibility. Recognizing that California faces increasing risks from wildfires, flooding, extreme heat, and drought, the program aims to develop innovative insurance solutions for vulnerable communities with limited insurance options. The grant program will focus on creating proofs of concept for new insurance mechanisms like community-based and parametric insurance, exploring approaches to build economic resilience in high-risk areas, testing community-purchased insurance to reduce costs, and supporting projects that incorporate nature-based solutions for risk reduction. Key objectives include creating climate resilience districts, educating communities about insurance's role in climate preparedness, and addressing the widening insurance protection gap that disproportionately affects disadvantaged communities. The department is required to report to the Senate and Assembly Insurance Committees on the program's results every three years, starting in January 2029, with the entire program set to expire on January 1, 2035, unless renewed by the Legislature.

Budget and Finance, Business and Industry

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1236