The recent Palisades and Eaton wildfires have once again underscored the challenges facing California’s insurance landscape. As wildfires become more frequent and severe, regulatory changes are reshaping the way insurers and claims management firms operate. At Crawford & Company, we remain steadfast in our commitment to supporting our clients with the highest level of service, empathy and expertise—even in the face of these evolving complexities.
The impact of the Palisades and Eaton wildfires
Unlike past wildfires that primarily affected rural or forested regions, the Palisades and Eaton fires tore through densely populated areas in Los Angeles County, affecting thousands of residents and businesses. This shift brought unique challenges, from delayed response times due to ongoing fire activity to complex environmental risks like lead and asbestos exposure. As one of several key partners in wildfire claims management, our priority was helping policyholders receive the timely support and guidance they needed during this devastating time.
Empathy at the forefront of claims management
Managing wildfire claims isn’t just about processing paperwork—it’s about restoring lives. Our adjusters recently completed comprehensive empathy training, reinforcing the importance of a human-first approach. As of February 2025, over 1,359 hours of empathy training have been completed by Crawford adjusters. This training prepares our adjusters to handle delicate situations with the utmost care, so that each policyholder feels understood and supported during their time of need.
"While technical expertise remained crucial, the overwhelming devastation of these fires often required an empathetic, human-first approach to addressing policyholders' immediate concerns and emotional distress."
- Rick Younger, VP - Managing Director, Field Operations
This philosophy was essential when dealing with the overwhelming number of total loss claims stemming from these fires. Policyholders were not just looking for reimbursement; they needed reassurance, guidance and a clear path forward. By deploying experienced catastrophe (CAT) and daily adjusters, we scaled our response to meet demand while delivering top quality services so that each claim was handled with care and urgency.
Navigating regulatory shifts and future challenges
California’s insurance market is undergoing significant change, with new mandates reshaping coverage availability and pricing. Historically, the state’s Fair Plan served as a last resort for homeowners who couldn’t secure coverage elsewhere. However, with many private insurers withdrawing from the California market due to rising risks, the Fair Plan is now becoming a primary option for many policyholders.
New regulatory adjustments will allow insurers to secure reinsurance, a move that could help stabilize the market but will likely lead to increased premiums for policyholders. Joseph Schaub, Managing Executive General Adjuster of Crawford’s Global Technical Services notes: “As we’ve seen in Florida, some insurers may continue operating in California but introduce new exclusions—particularly for wildfire risks. Our role as a trusted claims partner is not just to process claims efficiently but to help our clients and their policyholders understand what these changes mean for them.”
The road ahead: What’s next for California insurance
Looking forward, we anticipate further shifts in California’s insurance landscape, including:
- Expanded use of reinsurance, which could drive premium increases.
- Policy changes that may introduce new exclusions for wildfire risks.
- Increased reliance on specialty insurers and excess and surplus lines to bridge coverage gaps.
- A growing need for policyholder education, particularly around coverage limits and rebuilding timelines.
Despite these challenges, our mission remains unchanged: we are here to provide expert claims management, unwavering support and innovative solutions. Whether through adapting our CAT response strategies, educating policyholders or leveraging industry-standard and proprietary technologies, we are committed to supporting our clients—and the communities they serve—so that they are equipped for whatever comes next.
Rebuilding communities after disaster
The Palisades and Eaton wildfires tested the resilience of California’s insurance market, but they also reinforced the importance of strong partnerships in times of crisis. At Crawford, we are not just reacting to change—we are anticipating it, preparing for it and doing what we can support our clients every step of the way.
As the industry continues to evolve, we stand ready to navigate these shifts with expertise, agility and an unwavering commitment to the people who rely on us. Because when disaster strikes, it’s not just about claims—it’s about communities, recovery and rebuilding stronger than before.
To learn more about our claims management solutions, visit our loss adjusting services page.
