Stacy Korsgaden, a Republican contender for the role of California Insurance Commissioner, has pledged to tackle insurance fraud and initiate a comprehensive audit of the California Department of Insurance if she secures the position.
“The reason I’m running is because I can no longer stand by and watch the inexperience evident in the policies being implemented across the state. That’s why I’m stepping in,” Korsgaden expressed during a town hall meeting held last week in Tuolumne County.
Korsgaden, among 11 candidates vying to succeed Ricardo Lara, who is leaving the office due to term limits, addressed the audience at the Tuolumne Resilience Center. The event was organized by Tuolumne County Supervisor Steve Griefer.
Drawing on her extensive background in the insurance sector, Korsgaden detailed her journey, noting her education at California Polytechnic State University, San Luis Obispo, and her experience in founding an insurance agency. This business eventually gained national recognition before she sold it in 2023.
Korsgaden criticized the state’s escalating insurance issues, asserting that they’ve been developing over decades. She pointed to Proposition 103, a law passed by voters in 1988 to enhance oversight of the insurance industry, as a pivotal factor.
While acknowledging that the measure aimed to protect consumers, Korsgaden contended that the resulting regulatory environment became excessively restrictive, leading to increased premiums and a dwindling number of insurers in California.
She claimed the situation reached a breaking point in 2023 when major insurers, including State Farm, stopped writing new homeowner policies in California, creating what she described as a ripple effect across the market and pushing more residents onto the state’s FAIR Plan insurance program.
Korsgaden said one of her top priorities would be attracting more insurance carriers back into California to increase competition and stabilize rates.
As part of that effort, she proposed creating a new division within the Department of Insurance focused on encouraging new investment and helping additional insurance companies enter the California market.
She also pledged to aggressively pursue insurance fraud investigations and review departmental spending and operations to improve efficiency.
Her comments comes as regulators in the Golden State move to fine and potentially revoke the license of State Farm over alleged mishandling of claims tied to the 2025 wildfires, which killed at least 31 people.
Korsgaden discussed wildfire prevention work underway in the county and argued communities investing in fuel reduction and fire mitigation efforts should receive insurance incentives.
Korsgaden praised those local efforts and told attendees that Tuolumne County would be among her first stops if she is elected.
“You will be the first county that I come see, and I will bring insurance companies here,” she said.
During the forum, Korsgaden also expressed support for financial assistance programs aimed at helping homeowners pay for fire-hardening improvements, including possible tax rebates and additional state funding for wildfire mitigation projects.
