California Department of Insurance data show one consumer advocacy group earned $1.4 million in fees last year from a program that pays people and advocates to intervene in rate hearings.
Consumer Watchdog received $1,427,280.80 in fees from the state’s inventor compensation program in 2025, according to the CDI. The figure represents nearly all the funds awarded by the department that year.
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The intervenor program has come under scrutiny as carriers began pulling back from the wildfire-prone state.
California Insurance Commissioner Ricardo Lara last year proposed modernizing the program to diversify the recipients of intervenor funds, which is part of the state’s insurance law, Proposition 103.
According to Lara, some stakeholders have expressed concerns that the process lacks transparency, is dominated by a small number of recurring participants and can lead to delays and more costs for consumers and taxpayers.
Consumer Watchdog said the compensation they received last year was for work challenging excessive rates dating back to 2021. It includes payment in 14 rate challenges the commissioner delayed payment that approvals were finally issued for in May.
The difficulty of getting paid for intervening is a primary barrier for organizations to participate in the program, according to the group.
Related: Insurance Payments Now at $22.4B From LA Wildfires One Year Ago
Changes to the intervenor program proposed by Lara would include:
- Clarifying the “substantial contribution” standard for intervenor compensation.
- Requiring public reporting on intervenor activity and compensation.
- Establishing timelines and responsibilities for administrative law judges, including mandatory 30-day status updates on pending cases to the public.
- Requiring the CDI to post public documents online 鈥� including hearing calendars and decisions 鈥� making them accessible to all Californians and replacing outdated physical viewing rooms.
Consumer Watchdog said Lara’s proposal to change the rules that govern consumer rights to scrutinize and challenge unjustified rates would “derail the public participation process set up by insurance reform Proposition 103.”
Topics California Pricing Trends
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