“Safer from Wildfires”? – Viewing California’s Novel Insurance Regulation Through a Law and Economics Lens

Wildfire risks in California have reached catastrophic proportions. Consequently, for many California families, insuring their homes against wildfire has become prohibitively expensive or outright impossible. The California state government, in an effort to address this crisis, enacted an experimental insurance regulation in late 2022, dubbed “Safer From Wildfires” (“SFW”).