California Insurance Commissioner Ricardo Lara has proposed a Long-Term Solvency Planning Regulation to protect consumers from future insurance crises. The regulation requires insurers to plan for climate disasters, cybersecurity threats, and AI misuse through 2050.
- The regulation is the first of its kind for any U.S. state.
- It requires stress tests for climate scenarios and documentation of risks. - The rule builds on global regulatory expertise from France, the UK, and Singapore.
- A virtual public hearing will be held on July 28, 2026. The regulation aims to ensure market stability and protect consumers in California, including areas like Stanislaus County and Ceres.