Business News
LOS ANGELES – The Department of Insurance has released data showing wide socioeconomic disparities in auto insurance group discounts offered to millions of California drivers.
The investigation illustrates that many affinity groups disproportionately and adversely affect drivers residing in ZIP codes with lower per capita incomes, lower levels of educational attainment, and larger communities of color.
Some insurers offer lower automobile premium pricing to certain “affinity groups” including white-collar occupations and highly skilled workers.
Department data shows that one-quarter of Californians receive an affinity group premium reduction ranging from 1.5 percent to 25.9 percent depending on the insurer and group.
Insurance Commissioner Ricardo Lara called the new data “disturbing” after the first affinity group fact-finding hearing in the Department’s history last week in Los Angeles.
“This disturbing data confirms what we have heard for years, that auto group discounts do not apply equally across California,” said Insurance Commissioner Ricardo Lara. “We are evaluating whether insurer affinity group discounts violate state laws, and I am prepared to act to ensure all Californians have access to affordable auto insurance regardless of their income, education, or ethnicity.”
Among the findings released by the Department of Insurance:
– Customers in surveyed affinity groups tend to be in higher income ZIP codes. Only 26 percent of Californians in the lowest-earning areas ($22,516 per capita and below) receive group discounts, compared to 55 percent in the highest-earning areas ($49,070 per capita and above).
– Those in affinity groups that were surveyed are more likely to reside in ZIP codes with a higher average educational attainment. Only 28 percent of those living in areas with the lowest number of college degrees receive discounts, compared to 56 percent for those where half or more have college degrees.
– Those in affinity groups are more likely to reside in ZIP codes with a predominantly non-Hispanic white population. 47% of persons living in ZIP codes with a large non-Hispanic white population (62 percent or greater) receive an affinity group discount. Only 29 percent of those in heavily minority areas (greater than 83 percent) receive discounts.
– Three-quarters of those in underserved communities were not in an affinity group, compared to 57 percent for the rest of the state.
The Department of Insurance is responsible for the review and approval of automobile insurance premiums in the state to ensure they are fair and based on objective factors.
The 1988 voter-enacted Proposition 103 established the mandatory factors to be a driver’s driving safety record, miles driven, and years of driving experience, followed by optional factors that the commissioner may permit for use in automobile insurance rating.
In January, the Department of Insurance prohibited the use of gender in private passenger automobile rate-setting in order to remove factors that are beyond a driver’s control.
The investigation illustrates that many affinity groups disproportionately and adversely affect drivers residing in ZIP codes with lower per capita incomes, lower levels of educational attainment, and larger communities of color.
Some insurers offer lower automobile premium pricing to certain “affinity groups” including white-collar occupations and highly skilled workers.
Department data shows that one-quarter of Californians receive an affinity group premium reduction ranging from 1.5 percent to 25.9 percent depending on the insurer and group.
Insurance Commissioner Ricardo Lara called the new data “disturbing” after the first affinity group fact-finding hearing in the Department’s history last week in Los Angeles.
“This disturbing data confirms what we have heard for years, that auto group discounts do not apply equally across California,” said Insurance Commissioner Ricardo Lara. “We are evaluating whether insurer affinity group discounts violate state laws, and I am prepared to act to ensure all Californians have access to affordable auto insurance regardless of their income, education, or ethnicity.”
Among the findings released by the Department of Insurance:
– Customers in surveyed affinity groups tend to be in higher income ZIP codes. Only 26 percent of Californians in the lowest-earning areas ($22,516 per capita and below) receive group discounts, compared to 55 percent in the highest-earning areas ($49,070 per capita and above).
– Those in affinity groups that were surveyed are more likely to reside in ZIP codes with a higher average educational attainment. Only 28 percent of those living in areas with the lowest number of college degrees receive discounts, compared to 56 percent for those where half or more have college degrees.
– Those in affinity groups are more likely to reside in ZIP codes with a predominantly non-Hispanic white population. 47% of persons living in ZIP codes with a large non-Hispanic white population (62 percent or greater) receive an affinity group discount. Only 29 percent of those in heavily minority areas (greater than 83 percent) receive discounts.
– Three-quarters of those in underserved communities were not in an affinity group, compared to 57 percent for the rest of the state.
The Department of Insurance is responsible for the review and approval of automobile insurance premiums in the state to ensure they are fair and based on objective factors.
The 1988 voter-enacted Proposition 103 established the mandatory factors to be a driver’s driving safety record, miles driven, and years of driving experience, followed by optional factors that the commissioner may permit for use in automobile insurance rating.
In January, the Department of Insurance prohibited the use of gender in private passenger automobile rate-setting in order to remove factors that are beyond a driver’s control.
- Details
- Written by: Department of Insurance
BOISE, Idaho – An important West Coast groundfish stock that was formerly overfished has now been rebuilt ahead of schedule, the Pacific Fishery Management Council announced this week.
The cowcod (Sebastes levis) stock south of 40°10’ N. latitude has been managed under a strict rebuilding plan that has severely constrained West Coast fisheries in California for two decades.
Rebuilding cowcod was achieved through large area closures, non-retention rules, and very low allowance for incidental bycatch.
“This is a remarkable accomplishment,” said Council Chair Phil Anderson. “The council’s perseverance, adherence to scientific advice, and partnering with the commercial and recreational stakeholders resulted in the rebuilding of this important groundfish species. “
Cowcod, prized by both California recreational and commercial fishermen, were declared overfished and placed under rebuilding measures in 2000. They are a long‐lived, slow‐growing species, prone to protracted rebuilding progress.
Under the original rebuilding plan, the stock was expected to rebuild by 2090. Improved science
and understanding of this stock’s population dynamics allowed the council's management measures to rebuild much quicker than originally anticipated.
The Pacific Fishery Management Council, National Marine Fisheries Service and fishing industry stakeholders have collaborated successfully to rebuild overfished West Coast groundfish stocks.
Cowcod is the ninth West Coast groundfish stock to rebuild through stringent management measures, leaving yelloweye rockfish as the only federally-managed groundfish stock managed under a rebuilding plan.
The cowcod assessment was developed by scientists at the National Marine Fisheries Service Southwest Fisheries Science Center and was reviewed by a stock assessment review panel, which includes independent scientists, and endorsed by the council’s Scientific and Statistical Committee.
New harvest specifications and regulations informed by this assessment are expected to be put in place beginning in 2021.
The Pacific Fishery Management Council is one of eight regional fishery management councils established by the Magnuson Fishery Conservation and Management Act of 1976 for the purpose of managing fisheries 3‐200 nautical miles offshore of the U.S. coastline.
The Pacific Council recommends management measures for fisheries off the coasts of California, Oregon and Washington.
The cowcod (Sebastes levis) stock south of 40°10’ N. latitude has been managed under a strict rebuilding plan that has severely constrained West Coast fisheries in California for two decades.
Rebuilding cowcod was achieved through large area closures, non-retention rules, and very low allowance for incidental bycatch.
“This is a remarkable accomplishment,” said Council Chair Phil Anderson. “The council’s perseverance, adherence to scientific advice, and partnering with the commercial and recreational stakeholders resulted in the rebuilding of this important groundfish species. “
Cowcod, prized by both California recreational and commercial fishermen, were declared overfished and placed under rebuilding measures in 2000. They are a long‐lived, slow‐growing species, prone to protracted rebuilding progress.
Under the original rebuilding plan, the stock was expected to rebuild by 2090. Improved science
and understanding of this stock’s population dynamics allowed the council's management measures to rebuild much quicker than originally anticipated.
The Pacific Fishery Management Council, National Marine Fisheries Service and fishing industry stakeholders have collaborated successfully to rebuild overfished West Coast groundfish stocks.
Cowcod is the ninth West Coast groundfish stock to rebuild through stringent management measures, leaving yelloweye rockfish as the only federally-managed groundfish stock managed under a rebuilding plan.
The cowcod assessment was developed by scientists at the National Marine Fisheries Service Southwest Fisheries Science Center and was reviewed by a stock assessment review panel, which includes independent scientists, and endorsed by the council’s Scientific and Statistical Committee.
New harvest specifications and regulations informed by this assessment are expected to be put in place beginning in 2021.
The Pacific Fishery Management Council is one of eight regional fishery management councils established by the Magnuson Fishery Conservation and Management Act of 1976 for the purpose of managing fisheries 3‐200 nautical miles offshore of the U.S. coastline.
The Pacific Council recommends management measures for fisheries off the coasts of California, Oregon and Washington.
- Details
- Written by: Pacific Fishery Management Council
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