California may be on the verge of another insurance crisis. In the wake of several years of highly destructive wildfires, the prospect of more ahead as climate change intensifies, and increasing costs of construction and rebuilding, State Farm has announced that it will no longer write new homeowners policies in California. This won’t affect existing policyholders and it will stay in the auto insurance business, but State Farm says it can’t afford to insure any more homes in the state. It’s not the first major insurer to make this decision recently, with Chubb Insurance and AIG announcing similar moves. What does this mean for California homeowners and consumers, and could there be a domino effect with more companies following suit?

For more, KCBS Radio political insider and State of California host Doug Sovern spoke with Harvey Rosenfield, founder of the California group Consumer Watchdog and the author of California’s Proposition 103, which created the elected office of Insurance Commissioner in 1988 and required companies to get state approval to raise their rates.