Innovative City Planning and State Officials'
Leadership Pave the Way for Mercury Insurance to Begin
Offering Homeowners Coverage to Paradise Residents in the Wake
of Catastrophic Wildfire
PARADISE, Calif., Jan. 7, 2025
/PRNewswire/ -- Mercury Insurance (NYSE: MCY), a leading provider
of property and casualty insurance, announced today that the
company will begin writing new homeowners insurance policies in the
town of Paradise, CA. Mercury is
the first major insurance company to begin offering policies to
Paradise homeowners since the town
was engulfed by the "Camp Fire" in November
2018.
The move was made possible by California Department of Insurance
Commissioner Ricardo Lara's
commitment to implement his Sustainable Insurance Strategy,
which is designed to provide California consumers with a wider array of
home insurance options. The efforts of Paradise city officials and residents also
played a pivotal role in Mercury's decision to reenter the market,
as they've demonstrated a commitment to reducing wildfire risk
through forward-thinking urban planning and mitigation strategies.
"Mercury's return to offering homeowners coverage in
Paradise, California is the result
of hard work by the City and its residents, the State and
numerous individuals and organizations who have reimagined how a
town can grow and thrive in an area prone to wildfires," said
Victor Joseph, President and Chief
Operating Officer of Mercury Insurance. "Our team has taken
numerous trips to the city to see the transformation firsthand, and
what we've seen makes us confident that Paradise can serve as a model for other cities
facing similar challenges."
The rebuilding process began as soon as it was safe to return to
the area. City officials, emergency services, private residents,
grassroots organizations like the Rebuild Paradise Foundation, and
numerous other entities have led the charge on the rebuild, making
Paradise the fastest growing city
in California, according to the
California Department of Finance.
"Rebuilding the town's infrastructure while generating momentum
for our neighbors and businesses to return to Paradise has been our overarching goal," said
newly elected Mayor Steve Crowder.
"We see Mercury's return to providing coverage in Paradise as a crucial step in our rebuild
strategy and a demonstration that we have been successful in
redefining how cities can be built to lower wildfire risk."
Paradise worked closely with
the Insurance Institute for Business & Home Safety (IBHS) to
strengthen the town's resilience. The town updated its building
ordinance in July 2022 to require all
new homes be built to IBHS's Wildfire Prepared Home standard.
Wildfire Prepared is based on years of wildfire research and the
program is designed to significantly reduce a structure's risk of
ember ignition. Requirements include a Class A roof, an exterior
that features ember-resistant vents with lower six inches of
vertical space, and a noncombustible Zone 0, the five-foot buffer
around a house. The result is a community positioned to deal with
future fire events like never before.
"The Town of Paradise has been
thoughtful in its approach and is working hard to rebuild the
community in a way that will not only provide better protection,
but also make it more insurable," said Roy
Wright, IBHS President and CEO. "Wildfire has a role in
nature. Yet, the goal we aim to achieve is to keep it from entering
our neighborhoods and consuming homes. And that's where
Paradise is leading the way in
community resiliency, using our research to build back stronger.
That is more appealing for insurance companies like Mercury."
"Being part of the rebuilding process has been important to us,"
says Paradise resident,
Gary Ledbetter. "Paradise leadership has demonstrated
remarkable foresight, and the community is fully committed to
rebuilding in a way that greatly enhances the town's resiliency. As
a result, we now are getting access to more affordable home
insurance options other than the FAIR plan."
Mercury Insurance is confident the company's return to
Paradise will pave the way for
other insurance providers to follow suit. "It's vital the insurance
industry supports the efforts of communities and homeowners to
build greater resilience against wildfires," said Joseph. "We
are working with a number of communities in higher risk areas to
build on what we're doing in Paradise, and we anticipate Mercury will
continue to grow our customer base in these areas. This is the
direct result of not only the Commissioner's Sustainable Insurance
Strategy, but also the leadership and dedication of Governor
Gavin Newsom, who has significantly
grown and improved the state's ability to manage and fight
wildfires.
"If communities take proactive steps to better protect their
community and homes, we believe the insurance industry should
acknowledge these efforts by doing our part to provide coverage at
an affordable price. We're proud that Mercury is the first major
insurance company to come back to Paradise, because this town has done their
part and now it's our turn to do ours."
Mercury Insurance has remained committed to the State and has
consistently worked to support its fellow Californians. In 2024,
Mercury spearheaded an effort to maintain insurance availability
for thousands of consumers who otherwise would have lost their
coverage when Tokio-Marine America made the difficult decision to
withdraw from its personal line business in California. Mercury also announced last year
that it has partnered with the UCLA Anderson Forecast to study the
impact climate change is having on the company and its customers in
California. This research will
shed light on how Mercury and others can collaborate with various
stakeholders to provide innovative insurance products and services
specific to catastrophic weather risks, including wildfires.
About Mercury Insurance
Headquartered in Los Angeles,
Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier
offering personal auto, homeowners, and renters insurance directly
to consumers and through a network of independent agents in
Arizona, California, Georgia, Illinois, Nevada, New
Jersey, New York,
Oklahoma, Texas and Virginia, as well as auto insurance in
Florida. Mercury also writes
business owners, business auto, landlord, commercial multi-peril
and mechanical protection insurance in various states.
Since 1962, Mercury has provided customers with tremendous value
for their insurance dollar by pairing ultra-competitive rates with
excellent customer service, through nearly 4,100 employees and a
network of more than 6,500 independent agents in 11 states. Mercury
has earned "A" ratings from A.M. Best and Fitch, as well as "Best
Auto Insurance Company" designations from Forbes and Insure.com.
For more information visit www.MercuryInsurance.com or
follow the company on Twitter or Facebook.
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SOURCE Mercury General Corporation
