CA Insurance disruptions from Fires in 2025

Insurance Disruptions in California: The Endeavor Bank Webinar

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What Businesses Need to Know Now about the Insurance Disruptions in CA. Insights from Peter Katkov, Founder of Apex Risk, at the Endeavor Bank Webinar

California’s commercial insurance market is undergoing a major transformation, and not in a good way. That was the focus of a recent webinar hosted by Endeavor Bank, San Diego’s relationship-driven business bank, and co-led by Peter Katkov, Founder of Apex Risk and Insurance Services. The session brought together local experts and business leaders to shed light on the pressures facing policyholders, from canceled renewals to skyrocketing premiums.

While insurance may not always top the list of exciting business topics, Peter was quick to point out: it should. “It protects your business balance sheet. It protects your home. It protects your future. Yet most people treat it reactively, and that’s where they get burned,” he said.

Here are some of the key takeaways from the conversation.

Why the Insurance Market in California Is So Broken

The biggest names in insurance, national carriers, are pulling out of California or slashing coverage in wildfire-prone regions. Why?

If Endeavor Bank had to lend money at 2% while its cost of capital was 4%, they’d stop making loans. That’s exactly what’s happening in insurance. Carriers are being forced to write unprofitable business, and they’re opting out instead.

Reinsurance costs (the insurance that protects the insurers) have spiked by over 50% in the past five years due to climate-related catastrophes like California wildfires and Texas ice storms. Insurers now offload more risk to reinsurers, who pass the cost right back to you, the policyholder.

The Fallout for Business Owners

  • Premiums for many commercial property policies have doubled over the past 3–5 years.
  • Businesses are being forced into the California FAIR Plan, a last-resort coverage option that doesn’t meet the needs of most commercial operations.
  • Sudden non-renewal notices are leaving companies scrambling, often without enough time to find alternatives.

And the scariest part? Many business owners don’t know they’re at risk until it’s too late.

What Can You Do About It?

First and foremost: “Don’t accept the status quo.”

Too many policies sit untouched for years while a business evolves. New locations, acquisitions, product changes, all of these should trigger a proactive insurance review. “The problem is, brokers are often overwhelmed or lazy, and they’re not motivated to find the best options, that’s why policyholders have to take control.”

Several steps you can take now:

  • Conduct a full risk review, especially after operational changes.
  • Don’t wait until renewal. Policies can be amended any time to reflect business evolution.
  • Give your broker time. Underwriters need at least 60 days to meaningfully quote alternatives.
  • Challenge non-renewals. You have more leverage than you think.

Peter shared a personal anecdote: after receiving a non-renewal notice on his own home insurance for something as minor as moss on the roof, he took pictures, pushed back, and got the cancellation reversed. “You have to be your own advocate,” he said.

Is There Any Good News?

Yes, there’s cautious optimism. While the last few years have been rocky, we see signs that the market is stabilizing.

  • New carriers are entering California with tech-enabled underwriting tools.
  • AI is helping some underwriters make more nuanced decisions, rather than blacklisting entire ZIP codes.
  • Market competition may slowly return as legislative pressure builds.

But it won’t happen overnight, and waiting isn’t a strategy.

The Apex Risk Difference

At Apex Risk, Peter and his team specialize in complex, custom commercial insurance strategies. Their job isn’t to sell you a policy, it’s to protect your business.

  • Structured, layered policies that go beyond the FAIR Plan
  • Access to nontraditional carriers and risk-sharing models
  • Business interruption and contingent coverage strategies
  • Full risk exposure evaluations, not just a glance at your declarations page

Use Your Broker Wisely

As one Endeavor Bank panelist put it: “A good insurance broker is the least-used resource in an owner-managed business.”

Most business owners push insurance responsibilities to their controller or CFO. But in this market, it’s critical to have a risk consultant at the table, someone who sees beyond the renewal cycle and works strategically on your behalf.

Missed the Webinar?
Contact us to request a recording or schedule a consultation.

Special thanks to Endeavor Bank, San Diego’s business bank of choice, for bringing this timely and important conversation to the community.