California’s insurance system is at a breaking point—and few conversations capture the urgency better than the recent interview between “The Ag Meter” host Nick Papagni and Insurance Commissioner candidate Stacy Korsgaden. From skyrocketing premiums to vanishing coverage options, the discussion lays out the real challenges facing homeowners, farmers, and businesses across the state—and what it may take to fix them.
From Central Valley Roots to Industry Expertise
Raised in Visalia, California, Korsgaden brings over 40 years of hands-on insurance experience to the race—something she notes has been missing from the role for decades. After graduating from Cal Poly San Luis Obispo with a business degree, she built a highly successful agency with Farmers Insurance, earning national recognition as a top agent 14 times.
Her foundation? Service.
She explains that taking care of customers was always the priority—and that same philosophy now drives her campaign to lead California’s Department of Insurance.
A System Under Pressure: Rising Costs and Limited Access
Traveling across California, Korsgaden says she’s hearing the same concerns everywhere:
- Insurance premiums are unaffordable
- Policies are increasingly difficult to obtain
- Service has declined
- Many are forced into last-resort coverage options
For agriculture, the stakes are even higher. Farmers and ag businesses are dealing with rising costs for crop insurance, equipment coverage, commercial vehicles, and workers’ compensation—creating a ripple effect across the entire food production system.
At the center of the issue is the growing reliance on California’s FAIR Plan, originally designed as a backup option but now overloaded due to insurers pulling out of the state.
Why Insurance Companies Are Leaving California
Korsgaden attributes the crisis largely to policy decisions coming out of Sacramento. According to her, excessive regulation, price controls, and environmental policies have created an environment where insurers cannot properly assess or price risk.
She also points to broader issues impacting insurability:
- Poor forest management leading to catastrophic wildfires
- Rising crime rates
- Restrictions on energy production driving up fuel costs
These factors don’t just affect daily life—they directly increase insurance claims and premiums.
When costs go up across the system, premiums inevitably follow.
The Hidden Cost of Policy Decisions
One of the more striking insights from the interview is how interconnected California’s challenges are. Korsgaden explains that high fuel costs—driven by energy restrictions—raise the cost of repairs, transportation, and labor.
That means higher insurance claims… and ultimately higher premiums for consumers.
She also raises concerns about the state collecting roughly $4 billion annually from insurance premium taxes, suggesting this creates a complicated incentive structure tied to rising costs.
Fraud and Accountability: A Missing Piece
The conversation also dives into insurance fraud—an issue Korsgaden says is driving up costs for honest policyholders.
She emphasizes that one of the commissioner’s top responsibilities is fraud detection and enforcement, yet enforcement numbers have declined even as fraud remains widespread.
Her stance is clear: cracking down on fraud is essential to lowering premiums and restoring fairness in the system.
A Plan to Rebuild the Insurance Market
Korsgaden outlines a multi-step plan to restore competition and bring insurers back to California:
- Create a business development division within the Department of Insurance
- Actively recruit insurance companies and capital back into the state
- Streamline regulatory processes and reduce approval delays
- Allow insurers to price risk appropriately
She shares a striking example of an insurer that attempted to enter California’s market but never received a response from regulators—ultimately choosing to do business in other states instead.
Her takeaway: California must become open for business again.
Real Solutions for Real Disasters
Beyond policy reform, Korsgaden proposes practical improvements—especially for disaster response.
One idea: mobile insurance service units deployed in disaster zones. These would allow affected residents to meet directly with both regulators and insurance companies, speeding up claims and improving communication during crises like wildfires.
She says this type of service is currently missing—and urgently needed.
Leadership and the Need for Experience
Korsgaden is critical of current leadership, including Ricardo Lara, arguing that lack of industry experience has contributed to the current crisis.
Her broader message goes beyond politics:
California needs leaders with real-world experience, a commitment to service, and the ability to deliver results—not just regulations.
A Call to Action for California Voters
For listeners of The Ag Meter, especially those in agriculture, freight, and small business, this conversation hits close to home. Insurance is not just another expense—it’s a lifeline for operations, livelihoods, and long-term sustainability.
Korsgaden believes California can be rebuilt—like turning around a struggling business or restoring a neglected property—but it will take the right leadership and a willingness to change course.
Get Involved & Learn More
Korsgaden encourages voters to learn more about her platform and get involved:
👉 Website: stacyforinsurancecommissioner.com
Don’t Miss the Full Interview
This article only scratches the surface. The full interview between The Ag Meter’s Nick Papagni and Stacy Korsgaden dives deeper into the policies, challenges, and solutions shaping California’s future.
🎧 Listen to the full episode to hear firsthand insights on:
- The real reasons behind California’s insurance crisis
- How policy decisions impact agriculture and business
- What it will take to restore affordability and access