Guest Opinion | Brandon D. Lamar: Leaders Need to Hold Insurance Companies Accountable

Seven months after the wake of the devastating Eaton Fire, which ravaged thousands of homes and displaced families, many of them from historically marginalized communities, insurance companies should have been a source of relief and recovery. Instead, they’ve added insult to injury.

Not only are many policyholders still fighting to receive what they are rightfully owed, but we are now witnessing these same companies audaciously petitioning for rate increases. This is a slap in the face to fire survivors and a gross betrayal of public trust. How can insurance companies justify raising rates when they have failed to uphold their most basic obligation: protecting the people who pay them?

We’ve seen firsthand in Altadena and Pasadena how families, many of whom have paid premiums for years, are met with endless delays, denials, and lowball offers. Some insurance companies have refused to pay out altogether or have made unreasonable requests from residents who lost everything in the fire. Others have engaged in deceptive practices that may very well violate state insurance laws, all while their legal teams work overtime to limit payouts and protect corporate profit margins.

Let me be clear, this is not just unethical, it’s illegal. California law requires insurers to act in good faith and to honor the full terms of their policies. Yet countless residents report being ignored, pressured, or misled by insurers that continue to delay claims or force unnecessary investigations, pushing already-traumatized families to the brink.

And now, these same companies are asking the state for permission to increase rates, claiming rising costs and increased wildfire risk. But it’s not wildfire risk they’re concerned with; it’s their bottom line. If they can deny claims and still raise rates, they’ve created the perfect business model, one where customers pay more and receive less or nothing at all.

We cannot allow this to stand, especially when there are thousands of families still trying to rebuild their lives and hundreds still living in hotels and Airbnbs. Families that I’ve spoken to personally are relying on their insurance in order to rebuild their homes.

We need oversight. We need accountability. We also need leaders at the federal, state, and local levels to demand answers from these companies, starting with investigations into their post-fire practices and the rejection of any rate hikes until they fulfill their existing obligations.

This is about justice. When disaster strikes, our communities should be able to rely on the safety nets they paid into. If insurance companies can’t or won’t fulfill their promises, they have no business doing business here, especially not while asking families to pay even more.

The people of Altadena, Pasadena, and all Californians affected by wildfires deserve better.

Brandon D. Lamar is President of the Pasadena NAACP.