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CalChamber Board Explores Wildfire Challenges for Utilities, Insurers

By CalChamber
Pedro Nava, chair of the Little Hoover Commission and a former Assembly member, moderates a panel discussion with representatives from the utilities and insurance industries (both heavily regulated) at the CalChamber Board of Directors meeting on September 6. The subject: the issues being raised by the recurrence of deadly wildfires.
Kevin Sagara, chairman and CEO of San Diego Gas & Electric (SDG&E), describes how the utility has improved infrastructure (such as replacing wood power poles with steel); upgraded technology for monitoring weather, vegetation risk and history of its above-ground power lines (40% of the system); and public notification setup since a 2007 wildfire was deemed to have been caused by SDG&E equipment. The focus of company culture—from lineman to top executives—is “to keep our customers safe,” Sagara says.
CalChamber Board member Tom Conley, senior vice president of State Farm Insurance Companies/president and CEO, State Farm General Insurance Company, explains the practical and regulatory factors at play in determining whether premium pricing is adequate to match the loss risk. A question to consider, he says, is if wildfires are now like Florida hurricanes, are they being appropriately considered in the ratemaking process?
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The California Chamber of Commerce is the largest, broad-based business advocate to government in California, working at the state and federal levels to influence government actions affecting all California business. As a not-for-profit, we leverage our front-line knowledge of laws and regulations to provide affordable and easy-to-use compliance products and services.

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