Bernie Sanders backs progressive Jane Kim in California insurance commissioner race

• Progressives are backing Jane Kim for California state insurance commissioner.
• Senator Bernie Sanders is campaigning for Kim and progressive candidates.
• Kim proposes a state-managed universal disaster insurance system.
• Ben Allen advocates for extending current policies and reducing fire risk.
• California faces an insurance market crisis with many residents lacking private coverage.
• The state insurance commissioner has significant regulatory powers.

Progressives are backing Jane Kim, a Democrat and former San Francisco official, in her bid to become California's next state insurance commissioner, with Senator Bernie Sanders campaigning for her. The race highlights a divide within the Democratic Party over how to address the state's insurance market crisis.

Sanders has been rallying support for Kim, advocating for a tax on billionaires and a more assertive state role in insurance. For progressives, the insurance commissioner post is seen as a powerful regulatory position that could enact transformative policy changes in the nation's most populous state. This effort comes after a previous gubernatorial primary where billionaire Tom Steyer's campaign faltered.

Kim is competing against state Senator Ben Allen, marking the first time two Democrats have vied for the elected position since it was established in 1990. A recent poll indicated a narrow preference for Kim, though a significant portion of voters remain undecided ahead of the Nov. 3 contest.

California is currently experiencing a severe insurance market crunch, with over half a million people unable to secure private insurance due to a combination of factors including wildfires and strict price regulations. The state's insurance commissioner holds substantial authority, including the power to limit price increases, investigate insurers, and propose legislative changes.

Kim proposes a significant shift towards a state-managed system for natural disaster insurance, which would be funded through a charge on home insurance policies. This plan aims to make coverage automatic and universal, pooling premiums to fund home and community hardening efforts. In contrast, Allen advocates for extending current policies and implementing measures to reduce fire risk, aiming to attract insurers back to the market. He criticizes Kim's plan as lacking a clear roadmap for consumers.

Outgoing Commissioner Ricardo Lara has spent three years attempting to stabilize the market by allowing insurers to price policies based on future climate risk and to pass on some costs associated with rising natural disasters. While Lara and insurers believe these policies are aiding recovery, some consumer groups have voiced concerns that they are too favorable to the industry.