Insurance Premiums and Climate Withdrawals — 2026-09-25

Top developments

HHS cancels health insurance of 760,000 healthcare.gov enrollees

In a first for the ACA marketplace, the Department of Health and Human Services announced it has cancelled the coverage of 760,000 individuals enrolled in healthcare.gov plans. Combined with the expiration of enhanced premium tax credits, households now face both losing coverage and higher premiums at open-enrollment time — with Dec. 15 the key deadline to avoid cost spikes in 2027.

California FAIR Plan holds near 697,000 policies; insurers' new-policy pledges questioned

California insurers have committed to writing new policies under the state's catastrophe-model rules, but FAIR Plan enrollment remains near 697,000 amid a dispute over how much progress has actually been made. CalMatters reports that few home insurance policies are genuinely being written for Californians in high-risk areas despite incentives — meaning many households' only option remains the state's last-resort insurer, where coverage is costlier and thinner.

Insurers refusing even low-risk California properties

The LA Times (Sept. 20) documented major carriers refusing to insure even low-risk, minimally fire-exposed properties in California, triggering a "we were panicking" scramble among homebuyers. A companion piece traces the rise of the state's troubled FAIR Plan from its Watts origins to its current role as the wildfire-era safety net — a signal that climate-driven withdrawal is no longer confined to high-fire zones.

New Zealand health insurance disputes up 91%

NZ Herald reports health insurance disputes have risen 91% as premiums climb and insurers increasingly refuse to cover the full cost of expensive medical treatments — leaving policyholders footing unexpected bills. It's a stark case study in how rising premiums can come paired with shrinking coverage value.

Japan: Sompo adds another ~5% auto rate hike for January 2027

Asahi Shimbun confirms Sompo Japan will raise auto insurance premiums by about 5% on average in January 2027 — its second hike within a year (up ~1.8% last July) — citing surging repair costs from rising labor and parts prices. Japanese drivers thus face compounding increases on top of November's already-scheduled mandatory liability premium rise.

Local view

Colorado: InsuranceNewsNet relays that Colorado faces double-digit hikes, though the state's division said premiums are increasing less than the national median — "faring better than other states."

Massachusetts: Cambridge Day (Sept. 23) reports local residents "feel squeezed" as health premiums are set to rise double digits again in 2027, blaming consolidation, new drugs and inflation.

Florida: Capital & Main chronicles how Florida's climate crisis has "come due" as a higher insurance premium, with voters arguing not about emissions but about who pays when extreme weather hits.

Context & numbers

• FAIR Plan enrollment: near 697,000 policyholders, effectively California's fastest-growing insurer of last resort
• Cancelled ACA plans: 760,000 individuals
• NZ health insurance disputes: +91%
• Sompo Japan auto: +~5% (Jan 2027), following +~1.8% (July 2026)

On the radar

• El Niño-driven 2027 wildfire risk: experts at New York Climate Week warned post-El Niño conditions could raise wildfire activity in 2027, with correlated catastrophe losses potentially underpriced by reinsurers — a likely driver of further rate filings and stricter coverage.
• Mitigation not being rewarded: also at NY Climate Week (Sept. 24), experts said insurers fall short in recognizing risk-reduction efforts — watch for pressure on rate credits for wildfire hardening.
• Dec. 15 enrollment deadline: Forbes flags open-enrollment timing, the ACA subsidy cliff and Medicare drug plan changes consumers must check before year-end.
• California record El Niño state of emergency announced this week — watch for flood-zone coverage tension and FAIR-plan stress.