The California Apartment Association is backing proposed reforms to the state’s intervenor process, a system that has delayed insurance approvals and contributed to rising costs for rental housing providers.

Insurance Commissioner Ricardo Lara on Sept. 19 announced a set of proposed regulations aimed at modernizing how intervenors — third-party groups that challenge insurance rate filings — participate in the review process. Lara said the changes are designed to bring greater transparency and accountability by clarifying standards for intervenor compensation, requiring public disclosure of fees, setting firm timelines for administrative judges, and posting hearing calendars and decisions online.

The reforms come as part of the Department of Insurance’s Sustainable Insurance Strategy, which seeks to stabilize California’s market and encourage insurers to remain in or return to the state. According to Lara, the current system, last updated in 2006, has been dominated by a small number of repeat players, resulting in unnecessary delays and costs.

On Sept. 24, a coalition of more than two dozen industry and consumer groups, including CAA, sent a letter to Commissioner Lara expressing strong support for the reforms. The letter pointed to Department data showing that in 2024, rate filings without intervenor involvement averaged 256 days, while those with intervenors stretched to 529 days — nearly a year and a half.

“California’s rental housing providers are facing skyrocketing costs as insurance approvals are dragged out by groups exploiting the intervenor process for their own gain,” said Debra Carlton, executive vice president of state government affairs for CAA, in a news release. “Those fees worsen the state’s affordability crisis. Commissioner Lara’s reforms will bring accountability and help stabilize the insurance market so rental housing can remain accessible and affordable.”

Other coalition members, including the California Building Industry Association, the California Chamber of Commerce, and the California Council for Affordable Housing, also stressed how delays in rate approvals have stalled housing projects, increased costs, and limited access to coverage for families, farmers, and businesses.

The Department of Insurance has submitted the proposed regulations to the Office of Administrative Law, which will open a 45-day public comment period on Oct. 3. A public hearing is scheduled for Nov. 20 in Sacramento.

For more information and to view the official announcement from the Department of Insurance, visit the CDI website.