Business
Property owners sue California insurance companies over alleged 'collusion' following wildfires
A group of property owners affected by the January wildfires is suing major California insurance carriers, including the state’s largest, State Farm, accusing them of violating California’s antitrust and unfair competition laws.
The lawsuits follow others regarding insurers’ handling of the aftermath of the Eaton and Palisades fires, including against Insurance Commissioner Ricardo Lara and the California FAIR Plan (specifically about smoke damage), the state’s beleaguered insurance plan of last resort.
The group complaint and demand for jury trial filed Saturday in Los Angeles Superior Court allege that in a “nefarious conspiracy,” major insurers conspired to “eliminate competition between them,” thereby “intentionally and systematically” forcing homeowners to accept the California FAIR Plan.
On the same day, lawyers filed a separate class action lawsuit alleging the same thing.
“Insurance is a product that homeowners hope never to need, but rely on for peace of mind in normal times and for critical help rebuilding after a catastrophe,” Michael J. Bidart of Shernoff Bidart Echeverria LLP, one of the law firms representing the plaintiffs, said in a statement. “The complaints allege that, by colluding to push plaintiffs and so many like them to the FAIR Plan, the defendants have reaped the benefits of high premiums while depriving homeowners of coverage that they were ready, willing, and able to purchase to ensure that they could recover after a disaster like January’s wildfires.”
Representatives of the major insurance companies meet regularly to “discuss issues that we would consider to be market issues,” including the administration of the FAIR Plan, said Jamie Court, president and chair of the board of Consumer Watchdog, a Santa Monica-based, progressive nonprofit. “This was clearly a concerted attempt by the entire industry to push people in high-risk areas to lower benefit policies, and at the same time keep collecting higher premiums from everyone else.”
The FAIR Plan was established in the wake of the 1965 Watts riots, after fleeing insurers highlighted the need for a new type of carrier. The goal was to provide an insurance option for California homeowners living in places that open-market carriers refused to cover — including in communities vulnerable to wildfire.
The FAIR Plan has its own reserves, but is backstopped by California’s licensed property insurers, which are required to pay claims when the plan runs through its funds. The plan has proved pivotal due to increasingly disastrous fires in the state, including after the 2018 Camp fire that destroyed the town of Paradise and cost insurers $12.5 billion.
However, with many insurers canceling coverage for homeowners in fire-risk zones, the FAIR Plan has become overwhelmed. The number of FAIR Plan policyholders has skyrocketed from about 200,000 residential policyholders in 2020 to nearly 560,000 as of March 2025. The plan has estimated that it will lose some $4 billion on claims related to the January fires in L.A., draining its reserves and reinsurance.
In response, Lara signed a policy that was put in place last year that allows the FAIR Plan to assess its member companies $1 billion for residential claims. Those private insurers can then temporarily add surcharges to premiums paid by their policyholders to recoup 50% of that.
Those increases in premiums apply to homeowners throughout California — not just fire-prone areas. That said, Lara must consider those surcharges separately.
Opponents of the policy call it an industry “bailout” that burdens consumers.
“Homeowners across the state should not be on the hook for the L.A. fires because insurance companies abandoned those neighborhoods and dumped homeowners on the FAIR Plan,” Carmen Balber, executive director of Consumer Watchdog, told The Times in January.
The new suits allege that the state’s top insurers — those required by law to back the FAIR Plan — colluded to cancel plans, leaving homeowners underinsured under that plan, which has higher premiums than most plans on the commercial market, yet is capped at the lower coverage limit of $3 million. The plaintiffs are seeking three times the damages each has sustained.
“This is exactly the type of action that needs to happen for us to break up what is clearly cartel-like behavior,” said Court.
As of publication, representatives from State Farm and Allstate did not respond to requests for comment.
Hilary McLean, a spokesperson for the FAIR Plan, told The Times that “while the California FAIR Plan is not named in these lawsuits, the FAIR Plan does not comment on active litigation.”
Gabriel Sanchez, representing Lara’s office, said in an email, “The Department of Insurance is not involved in this matter as a party and cannot comment on the lawsuit. Our focus is, and always will be, protecting California consumers.”
Earlier this month, State Farm proposed a 17% emergency rate hike — down from an initial 22% request to state officials in February — that it said is necessary to “help stabilize State Farm General’s financial position” and prevent the carrier from having to “further constrain” its ability to provide home insurance in California.
Meanwhile, many who lost their homes in the L.A. fires are calling for a formal government investigation of major insurance providers, alleging that delays and denials have kept them in dire financial straits and housing limbo.
Times staff writer Laurence Darmiento contributed to this report.
Business
Disneyland Resort President Thomas Mazloum named parks chief
Disneyland Resort President Thomas Mazloum has been named chairman of Walt Disney Co.’s experiences division, the company said Tuesday.
Mazloum succeeds soon-to-be Disney Chief Executive Josh D’Amaro as the head of the Mouse House’s vital parks portfolio, which has become the economic engine for the Burbank media and entertainment giant. His purview includes Disney’s theme parks, famed Imagineering division, merchandise, cruise line, as well as the Aulani resort and spa in Hawaii.
Jill Estorino will become the head of Disneyland Resort in Anaheim. She previously served as president and managing director of Disney Parks International and oversaw the company’s theme parks and resorts in Europe and Asia.
Estorino and Mazloum will assume their new roles on March 18, the same day as D’Amaro and incoming Disney President and Chief Creative Officer Dana Walden.
“Thomas Mazloum is an exceptional leader with a genuine appreciation for our cast members and a proven track record of delivering growth,” D’Amaro said in a statement. “His focus on service excellence, broad international leadership and strong connection to the creativity that brings our stories to life make him the right leader to guide Disney Experiences into its next chapter.”
Mazloum had been about a year into his tenure at Disneyland. Before that, he was head of Disney Signature Experiences, which includes the cruise line. He was trained in hospitality in Europe.
In his time at Disneyland, Mazloum oversaw the park’s 70th anniversary celebration and recently pledged to eliminate time limitations for park-hopping, which are designed to manage foot traffic at Disneyland and California Adventure.
Mazloum will now oversee a 10-year, $60-billion investment plan for Disney’s overall experiences business, which includes new themed lands in Disneyland Resort and Walt Disney World. At Disneyland, that expansion could result in at least $1.9 billion of development.
The size of that investment indicates how important the parks are to Disney’s bottom line. Last year, the experiences business brought in nearly 57% of the company’s operating income. Maintaining that momentum, as well as fending off competitors such as Universal Studios, is key to Disney’s continued growth.
In his new role, Mazloum will have to keep an eye on “international visitation headwinds” at its U.S.-based parks, which the company has said probably will factor into its earnings for its fiscal second quarter. At Disneyland Resort, that dip was mitigated by the park’s high percentage of California-based visitors.
Times staff writer Todd Martens contributed to this report.
Business
What soaring gas prices mean for California’s EV market
It has been a bumpy road for the electric vehicle market as declining federal support and plateauing public interest have eaten away at sales.
But EV sellers could soon receive a boost from an unexpected source: The war in Iran is pushing up gas prices.
As Americans look to save money at the pump, more will consider switching to an electric or hybrid vehicle. Average gas prices in the U.S. have risen nearly 17% since Feb. 28 to reach $3.48 per gallon. In California, the average is $5.20 per gallon.
Electric vehicles are pricier than gasoline-powered cars and charging them isn’t cheap with current electricity prices, but sky-high gas prices can tip the scales for consumers deciding which kind of vehicle to buy next.
“We probably will see an uptick in EV adoption and particularly hybrid adoption” if gas prices stay high, said Sam Abuelsamid, an auto analyst at Telemetry Agency. “The last time we had oil prices top $100 per barrel was early 2022 and that’s when we saw EV sales really start to pick up in the U.S.”
In a 2022 AAA survey, 77% of respondents said saving money on gas was their primary motivator for purchasing an electric vehicle. That year, 25% of survey respondents said they were likely or very likely to purchase an EV.
As oil prices cooled, the number fell to16% in 2025.
In California, annual sales of new light-duty zero-emission vehicles jumped 43% in 2022, according to the state’s Energy Commission. The market share of zero-emission vehicles among all light-duty vehicles sold rose from 12% in 2021 to 19% in 2022.
“Prior to 2022, we didn’t really have EVs available when we had oil price shocks,” Abuelsamid said. “But every time we did, it coincided with a move toward more fuel-efficient vehicles.”
Dealers are anticipating a windfall.
Brian Maas, president of the California New Car Dealers Assn., predicted enthusiasm for EVs will rebound across California if oil prices don’t come down.
“If prior gasoline price spikes are any indication, you tend to see interest in more fuel-efficient vehicles,” he said.
Rising gas prices could be a lifeline for EV makers at a time when federal support for green cars has been declining.
Under President Trump, a federal $7,500 tax incentive for new electric vehicles was eliminated in September, along with a $4,000 incentive for used electric vehicles.
In California, the zero-emission vehicle share of the total new-vehicle market was 22% through the first 10 months of 2025, then dropped sharply to 12% in the last two months of the year, according to the California Auto Outlook.
Meanwhile Tesla, the most popular EV brand in the country, has grappled with an implosion of its reputation with some consumers after its chief executive, Elon Musk, became one of Trump’s most vocal supporters and helped run the controversial Department of Government Efficiency.
Over the last several months, Ford, General Motors and Stellantis have pared back EV ambitions.
Other automakers, including Nissan, announced plans to stop producing their more affordable electric models.
The Trump administration has moved to roll back federal fuel economy standards and revoked California’s permission to implement a ban on new gas-powered car sales by 2035.
David Reichmuth, a researcher with the Clean Transportation program in the Union of Concerned Scientists, said the shift in production plans will affect EV availability, even if demand surges.
That could keep people from switching to cleaner vehicles regardless of higher gas prices.
“This is a transition that we need to make for both public health and to try to slow the damage from global warming, whether or not the price of gasoline is $3 or $5 or $6 a gallon,” he said.
According to Cox Automotive, new EV sales nationally were down 41% in November from a year earlier. Used EV sales were down 14% year over year that month.
To be sure, oil prices can fluctuate wildly in times of uncertainty. It will take time for consumers to decide on new purchases.
Brian Kim, who manages used car sales at Ford of Downtown LA, said he has yet to see a jump in the number of people interested in EVs, hybrids or more fuel-efficient gas-powered engines.
Still, if the price at the pump stays stuck above its current level, it could happen soon.
“Once the gas prices hit six [dollars per gallon] or more and people feel it in their pocket, maybe things will start to change,” he said.
Business
Nearly 60 gigawatts of U.S. clean power stalled, trade group finds
A total of 59 gigawatts of U.S. clean energy projects are facing delays at a time when demand for power from AI data centers is surging, according to a trade group study.
Developers are seeing an average delay of 19 months over issues such as long interconnection times, supply constraints and regulatory barriers, the American Clean Power Assn. said in a quarterly market report.
The backlog is happening despite the growing need for power on grids that are being taxed by energy-hungry data centers and increased manufacturing. The Trump administration has implemented a slew of policies to slow the build-out of solar and wind projects, including delaying approvals on federal lands.
The potential energy generation facing delays is the equivalent of 59 traditional nuclear reactors, enough to power more than 44 million homes simultaneously.
“Current policy instability is beginning to impact investor confidence and negatively impact project timelines at a time when demand is surging,” American Clean Power Chief Policy Officer JC Sandberg said in a statement.
Despite the hurdles, developers were able to bring more than 50 gigawatts of wind, solar and batteries online in 2025, accounting for more than 90% of all new power capacity in the U.S., the report found. Clean power purchase agreements declined 36% in 2025 compared with 2024, signaling that the build-out of clean power in the U.S. could be lower in the 2028 to 2030 time period, according to the report.
Chediak writes for Bloomberg.
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