California Insurers Hit by FAIR Plan Antitrust Suit After Fires

Los Angeles wildfire victims brought two antitrust suits against several insurers in the state, alleging they forced California homeowners onto the state’s insurer of last resort to increase profits and lower their liability.

Major insurers, including State Farm and Farmers, colluded as a group to exit market segments, like those devastated by the January wildfires, allege the proposed class action and group action complaints filed Friday in California Superior Court, Los Angeles County.

The complaints cite a spike in enrollment in California’s stretched-thin FAIR Plan after insurers pulled back from the Golden State in 2022 and 2023, and homeowners who ...