California lawmakers were unable to reach a last-minute agreement on a plan to keep insurance companies in the state amidst growing financial risks from wildfires. The failure to pass a bill before the deadline leaves the issue unresolved for another fire season. The situation has reached a crisis point after major insurers such as State Farm, Allstate, and Farmers Insurance stopped selling new policies in the state due to high costs and increasing risk. The lack of insurance options makes it more difficult to build new homes and puts the state’s limited insurance plan, the FAIR Plan, at risk. Negotiations for a solution considered loosening regulations on the industry while maintaining protections for homeowners, but lawmakers were unable to reach a consensus. The issue is now a priority across state government, and Governor Gavin Newsom may issue an executive order or call a special legislative session to address the problem. Meanwhile, Insurance Commissioner Ricardo Lara and his department are working to reshape the insurance market through regulations, though any changes will take time to implement. The Legislature may still introduce a proposal next year based on Lara’s actions.