California Insurance Commissioner Ricardo Lara has finalized a regulation requiring California-domiciled insurers to assess how climate change, artificial intelligence, cybersecurity threats and other emerging risks could affect their financial strength.

The Long-Term Solvency Planning Regulation, effective October 26, 2026, requires covered insurers to make their first plans available to department examiners by January 1, 2028. Enhanced requirements apply to insurers writing more than $50 million in annual direct premiums nationwide.

The plans must consider potential effects on operations, investments and underwriting strategies, looking ahead to 2030, 2040 and 2050. The department will use the information to identify financial vulnerabilities before they threaten insurers’ ability to pay claims.

The rule adds planning and oversight requirements without changing existing policies, coverage or rates.

“Climate change, artificial intelligence, cybersecurity threats, and other developments are already reshaping the future of insurance. Waiting until those challenges become crises is not a strategy. We are acting now to ensure insurers are preparing for what lies ahead so they can continue keeping their promises to consumers. Every consumer who pays an insurance premium deserves confidence that their insurance company will be there when they need it most, not only today, but years from now.” – Commissioner Lara.