Reinsurance is when insurance companies buy insurance for themselves to protect against very big losses. It’s like a car owner getting extra coverage from another company so that if there's a serious accident, the financial hit isn’t all on one company. This helps insurance companies stay stable and able to pay out when disasters happen.
wildfire catastrophe modelstechnical
Wildfire catastrophe models are computer tools that combine maps, weather patterns, vegetation, and building information to estimate the likelihood and potential financial damage of major fires. Think of them as a weather forecast tied to a damage calculator: they produce scenarios and loss estimates that insurers, investors and property owners use to price risk, set reserves, decide where to invest, and plan for potential payouts. These models help translate natural hazards into financial numbers that guide capital decisions.
ember-resistant ventstechnical
Ember-resistant vents are vent covers or assemblies designed to block burning sparks and hot debris from entering a building’s attic or wall cavities during a wildfire, acting like a fine metal screen that keeps embers out while still allowing airflow. For investors, they matter because they lower the chance of catastrophic fire damage, can reduce insurance costs, help meet safety regulations, and preserve property value and operating continuity for real estate and infrastructure assets.
class a roofingtechnical
Class A roofing is the highest fire-resistance rating for roof coverings, meaning the materials resist flame spread and withstand severe exposure to fire without contributing significantly to a blaze. For investors, it matters because Class A roofs reduce fire risk, can lower insurance costs, affect regulatory compliance and property value, and signal lower long-term maintenance or liability—like choosing a safer, more durable battery for a device.
defensible spacetechnical
A defensible space is a cleared and managed area around a building or development designed to reduce the spread of hazards—most commonly wildfire—by removing flammable materials and creating conditions that allow responders to operate safely. For investors, it matters because effective defensible space lowers the risk of catastrophic property loss, can reduce insurance costs, influence regulatory compliance, and protect asset value in regions prone to natural hazards—think of it as a protective buffer that preserves an investment’s resilience.
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Participation reflects positive outlook for the California market and will increase choice for homeowners
HARTFORD, Conn.--(BUSINESS WIRE)--
The Travelers Companies, Inc. (NYSE: TRV) today announced its voluntary participation in California’s Sustainable Insurance Strategy (SIS), notifying the California Department of Insurance (CDI) of its intention to expand homeowners insurance availability across the state. Championed by Insurance Commissioner Ricardo Lara, the SIS allows participating carriers to incorporate forward-looking wildfire catastrophe models and reinsurance costs into rates along with plans to write in high-risk communities.
“California homeowners want access to reliable, fairly priced coverage and service from financially strong insurers they can count on,” said Michael Klein, Executive Vice President and President of Personal Insurance at Travelers. “Offering risk-based pricing for coverage facilitates a fair, competitive and healthy market for all participants. It will also allow us to responsibly operate throughout the state while supporting our ability to meet our obligations and fulfill our promise to customers.”
Travelers is supportive of the state’s efforts to offer access to coverage in areas that have been underserved due to wildfire exposure – another key element of the SIS.
In addition, Travelers is increasing its discounts for homeowners who invest in wildfire mitigation. Updates such as ember-resistant vents, Class A roofing and defensible space can improve both eligibility and pricing.
Consumers with questions can reach out to their local independent agent or a Travelers representative.
About Travelers
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of nearly $49 billion in 2025. For more information, visit Travelers.com.
