Navigating Rising Premiums, Carrier Changes, and Growing Risk
On April 29, financial professionals from across the East Bay gathered at the Orinda Country Club for an important and timely discussion on one of the fastest-changing challenges in financial planning today, the California Property and Casualty insurance market.
Hosted by FPA East Bay, this session brought together advisors looking to better understand how insurance trends are directly impacting their clients’ financial plans.
A Market Under Pressure
The current insurance environment in California is unlike anything many advisors have seen before. Rising premiums, reduced carrier capacity, and increased exposure to catastrophic risk are changing how coverage is obtained, and in some cases, whether it’s available at all.
Leading the discussion was Sterling Fairholm, who provided a clear, practical breakdown of what’s driving these shifts and what advisors need to be paying attention to right now.
Photos Courtesy of Jeron Silva / JPSfilmssf
Key Takeaways from the Session
Sterling walked attendees through the core factors reshaping the insurance landscape:
- Wildfire risk and catastrophe exposure are forcing insurers to reassess where and how they provide coverage
- Reinsurance costs continue to rise, putting pressure on carriers and ultimately driving premium increases
- Reduced carrier capacity means fewer options for clients, especially those with higher-risk properties
- Stricter underwriting guidelines are leading to more policy non-renewals and coverage limitations
- Market exits from insurers are leaving gaps that are difficult to fill
For many advisors in the room, these weren’t abstract trends, they’re already affecting clients in real time.
Why This Matters for Financial Planning
One of the biggest themes of the session was this: insurance is no longer a simple product decision.
It now plays a major role in broader financial planning, including:
- Client liquidity and cash flow
- Asset protection strategies
- Estate planning considerations
- Long-term insurability and risk management
When a client faces a non-renewal, a major premium increase, or is pushed into a last-resort market, the ripple effects can impact their entire financial plan.
Helping Clients Navigate Uncertainty
Attendees gained practical guidance on how to support clients in this environment, including how to:
- Identify potential coverage gaps early
- Set expectations around pricing and availability
- Communicate insurance-related risks clearly
- Incorporate evolving insurance challenges into long-term planning conversations
The session reinforced the need for advisors to stay proactive and informed as the insurance landscape continues to shift.
Thank You to Our Speaker and Sponsor
A big thank you to Sterling Fairholm for sharing his expertise and providing valuable, real-world insight into this complex topic.
We also appreciate the support of our event sponsor for helping make this event possible:
John Bacigalupi
Cantor Fitzgerald Asset Management
[email protected]
650-703-7180
Looking Ahead
This event highlighted just how quickly the risk environment is evolving and why staying informed is critical for today’s financial professionals.
We look forward to continuing these conversations at future FPA East Bay events.
If you’re not already attending, now is the time to get involved.
