California proposes new insurance rules to speed up rate hikes, drawing criticism

New regulations proposed by California's Department of Insurance aim to speed up the process for companies to raise home and auto insurance rates.

However, major insurance trade groups criticized the changes, saying they would likely worsen problems in the state's insurance market rather than help address them.

The rules were intended to simplify rate increase reviews so they could be completed faster, but companies say they add more confusion and bureaucracy.

Insurance Commissioner Ricardo Lara introduced the proposals as part of efforts to provide the state's homeowners relief from limited options and higher prices.

The department will consider feedback on the proposed changes and can modify them before finalizing the new regulations.