- Welcome to "Inland Edition" where we have conversations with people who make decisions that affect our everyday lives.

I'm Joe Richardson, an attorney, Inland Empire resident, and your host.

And today, we're gonna chat with California's insurance commissioner.

Raised in East Los Angeles by his immigrant parents, Ricardo Lara made history [background music] in 2018 by becoming the first openly gay person in California's history to be elected to statewide office.

He wrote Senate Bill 4, which led to health care for nearly 200,000 undocumented immigrant children.

He's also passed bills that enforced cleaning product chemical disclosures, and prevented California law enforcement from creating a registry based on religion, ethnicity, or national origin.

He's determined, he's dedicated, and he's vibrant, and it's time to meet him now.

[gentle upbeat music] ♪ ♪ ♪ - [Joe] Happy to welcome State Insurance Commissioner Ricardo Lara to "Inland Edition."

Thanks for being here!

- It's great to be back.

- Yeah, it's fantastic.

This is your area.

- Yes!

- It is the IE!

- It is the IE.

- It hasn't changed.

Some things don't change, right?

- [Ricardo] I love this place.

I started my political career here, so I'm happy to be back.

- Yeah.

So, we're thrilled to have you.

And so, let's get into it, because there's a lot to talk about because you've got quite a story, right?

Is there, as you go along, some aha moment in terms of you knowing that you wanted to be in, you know, elected politics, et cetera?

Or is it just a series of moments that have led to this "aha"; now bam, you're the insurance commissioner?

- (laughs) No.

There was definitely-- I would say a couple benchmark moments in my life where I realized that it was important to be at the table, be the people working on the agenda and making these important decisions.

For me, it was really eye-opening when I went to college.

I actually have a journalism major.

- Okay.

Yeah.

- I wanted to-- Remember, we used to have magazines back in the day, right?

- Yeah, sure!

Yeah.

- And, I wanted to be a reporter for "National Geographic."

I wanted to travel the world and write about these exotic animals.

And so, I went to college to San Diego State to do just that.

- Wow.

- And, it was during the time of Governor Pete Wilson in the early '90s when we started seeing a lot of the same rhetoric, ironically, that you're seeing now at the national level.

And, having some-- you know, coming from an immigrant background, having two undocumented parents at the time, and really seeing this kind of vitriol against immigrants and against refugees.

And I decided, "So, what are you gonna do?

"Are you gonna stand up and fight?

Or, are you gonna just pretend that doesn't affect you?"

And so, I decided to stand up and fight, and get involved.

And, that's where I got involved politically on campus.

And, you know, got involved in student government and became the student body vice president of the university.

And, after that, I decided to work in politics which brought me here to the Inland Empire.

And, worked for then-Assemblymember Nell Soto out of Pomona, and then, Senator Soto that included all of the IE, and why I fell in love with this community.

'Cause not only is there a great need, but it was so unrepresented at the time.

And, to be part of her staff in the district, I got to know all this area and this beautiful community.

And so, it's really great to be back.

I love the IE.

- So, you've really done a lot.

You started on it a bit.

But you've been a chief of staff- - Yeah!

(Ricardo chuckles) - Which to me is like the boss.

'Cause the chief of staff actually understands policy.

- Right!

- They understand what's supposed to happen.

You've been a district director.

Then, you get into being an elected assemblyperson, senator, and now insurance commissioner.

Tell me about how each of those experiences really informs what you do now.

- Well, that's a great question.

You know, I would say being a staff really gives you an opportunity to dive in to not only the policy work, but the district needs in the community, right?

You become much more attuned of what the community needs, what the community looks like, and you're engaging with community leaders every day.

And so, you get to understand what the needs are, and then communicate-- to be able to communicate that in a way that's succinct to the legislator.

Because as you can imagine, as a legislator, you're constantly being bombarded by people that want things or interest groups and so forth.

So, you have a very limited time with your boss.

And, you have to be as succinct, as passionate and come in with ideas, right?

Like, Senator Soto would always say, "It's easy to come with problems.

Give me solutions."

- Mm hm.

- So, you had to be able to do that quickly because the member was busy running around doing a million things.

And so, that job was allowed me to be succinct, to really think about multiple ways of attacking a problem.

But also really, I think in the end, really appreciate staff, and understand that you have to develop the next generation of leaders, you have to support your staff, be empowering so that they can feel themselves not only empowered, but see themselves in future positions of power, as well.

Because what good is it if you're not developing a farm team to take on these positions as you move forward?

And, I'm blessed to have had really a group of bosses that empowered me to take the step in times when I was scared to do that.

And, I felt that maybe I belong, you know, behind the camera or just belonged-- just be a staffer.

'Cause, you know, taking that step is scary, you know?

- Right.

- 'Cause there's something about-- you know, I can sell you a candidate.

It's very different when it's your face on the flyer- - Sure.

- and you have to sell yourself.

- So, as the insurance commissioner, I think one of the things that I learned in law school-- that I didn't learn in law school!

(Ricardo chuckles) I learned later that I didn't learn it in law school!

- Right!

(laughs) - You guys are following me, right?

Was that insurance rules the world.

It affects everything and everyone.

So, talk to us a bit about what the insurance commissioner does, and about the various functions that your office actually has.

Because, I think that it's a very well-kept secret and it's still a relatively new job, right?

It's only been around for about 35 years.

- Right.

- There's always been a governor.

There's always been a lieutenant governor.

But, the insurance commissioner is as vital as any of the others, but it's the newbie, relatively speaking.

- Right.

- So, talk about what the insurance commissioner does, and all of the areas that you guys actually operate in.

- Absolutely.

You know, the insurance commissioner position, in my position, is one of the most important ones in our state level.

We were created to be the consumer advocate and be that advocate for our average working men and women who often have to take on big insurance companies.

At the same time, my job is to oversee our insurance market in California, to make sure that we have a stable and strong market so that the insurance companies can pay out the claims for the consumers.

And so, I have essentially two big jobs: to fight on behalf of consumers, and to make sure we have a strong and thriving market.

So, what does that mean?

You're absolutely right.

Insurance touches every aspect of our life, from health, property and casualty, to making sure that your assets are protected.

And, also how do you use insurance to build wealth for you and your family?

You know, through a life insurance policy, for example.

These are all things that, you know, wealthy people have been utilizing these financial instruments for generation.

A lot of our working class folks may not understand how important a life insurance policy is, and that you leave a nest egg for the next generation to either go to college, be able buy a home, build your business.

And so, you know, we've been doing a lot of that work.

And, people don't understand that those are insurance financial instruments that are essential to building wealth, to protecting you and your family as we're seeing climate change, and seeing wildfires ravage so many of our communities, especially here in the Inland Empire.

And also, you know, life insurance policies that can be used to build wealth, generational wealth for communities.

- Talk about, if you will, a bit: (clears throat) affordability.

- Yes.

- The whole notion that there are, you know, and as a plaintiff's attorney, we pay attention to this 'cause we always ask less than sheepishly, "Where's the pocket?"

- Right.

- If there's a wrong to be addressed and redress to be made, it's gotta come from somewhere.

- Right.

- And, how does that happen?

But, talk to me about-- there are good people in the state of California that are paying $6 a gallon for gas and they gotta make a decision between gas and insurance.

- Right.

- And, they're choosing gas.

You know what I mean?

- Right.

- Talk about some of the battlegrounds related to affordability, because California is a huge state of a lot of people and everything's expensive.

But, that's the reason why insurance is so important.

That actually doesn't-- you know, it's not mutually exclusive.

No.

This is why they're important!

This all works together and it makes it all the more important.

So, talk about some of those challenges.

- Absolutely.

You know, it's important to remind Californians that California is the largest insurance market in the country, fourth in the world.

So, we are a very important economic engine for the state and for the country.

Now with that said, you rightfully said, insurance is becoming much more-- much less affordable and you're seeing a lack of availability, as well.

You're seeing an insurance market now that's really contracting because of what we're seeing around climate.

We're still suffering the economic effects of the pandemic, and now we have record inflation.

So, these things have always existed.

This is the first time that these three issues are impacting us simultaneously.

And, that is why you're seeing an insurance market really contract and rates are going up, and the availability is also-- is going down.

And so, this is why it's important for us to really start thinking out of the box.

Because, unlike utilities, insurance companies are private business.

People tell me all the time, "I've been with the same "insurance carrier for 30 years "and they just canceled my policy.

How could they do that?"

Insurance companies are not utilities.

They're not obligated by law to continue providing a service.

They're a private business.

And, if they're losing money, and if, you know, they're not making a reasonable return to be able to pay out claims, they're gonna stop-- either they're gonna redo their underwriting or they're gonna, you know, really stop writing new business.

Which is what you're seeing in California and, quite frankly, around the country and in the world.

I mean, look at what's happening in Florida, for example.

Right?

- Sure, sure.

- And so, what we're doing now is working with the industry to figure out, before we even get to affordability, is how do we get to availability?

How do we make sure that consumers have available options for traditional insurance coverage so that then you have insurance companies fighting again for the consumer's business, driving those costs down?

And, the answer to us is mitigation.

How do we help consumers understand that if you "harden" your home, what does that mean?

If you have the appropriate roofing, if you have the appropriate defensible space, the five feet around your house, you could actually save your property.

You could bring the cost of your insurance down.

And now, through new regulation that I'm working on, and that I implemented, I should say, you're actually gonna get a discount on your insurance for doing what's right.

Really bringing down the cost of your home by hardening it, protecting it against wildfire, which ultimately protects your family, protects your investment, and you'll get cheaper insurance.

So now, we're starting to work on the things that we actually can control, which is making communities safer and incentivizing consumers to protect their property by giving them a discount.

We are the first state in the country to do that.

- Mm hm.

- Again, incentivizing consumers to do the right thing by giving them an actual discount on their insurance policy is gonna make a world of a difference for those folks that rightfully were in tough economic times.

They have to make decisions: "Do I put a brand new roof over my property?

"Do I create this defensible space?

Do I remove all this vegetation that's gonna cost money?"

And now, we're saying, "If you do this, you're gonna get a discount on your insurance."

So, you're actually getting some monetary incentive to do that.

And, the insurance companies have agreed that if you do that, you get a discount, because you're bringing down the risk for your property.

Now, imagine.

As communities do this as a whole, communities become safer, especially for our long-- our traditional communities that have existed here for generations that maybe have not hardened their homes, right?

'Cause we haven't had-- you know, climate is changing.

Hot-- summers are gonna become hotter; winters are gonna become wetter.

That, then, feed the fuel for the fires.

So, as you can imagine, I'm no longer the most popular person at anybody's party anymore.

'Cause I'm looking at your brush, I'm looking at your roof!

(chuckles) But, these are things that are important for people to understand that there are strategies out there to bring your risk down, bring the cost of your insurance down.

And also, the important thing is, I always tell people, "Look, when you're gonna enter into an insurance policy, "I know those commercials are adorable.

"They make it seem that they're gonna be there.

"That they're cute and they're funny.

"But, you're entering into a business contract.

Don't be fooled."

Well, one thing I always say, "Before you sign, an insurance company is always gonna tell you what you're covered.

You should then turn around and ask, 'What am I not covered- - Sure.

- under this policy?'"

So, that you're going into this business contractual obligation and agreement with your eyes open understanding what your coverage is, and what you're not covered for.

- Regardless of what, and I've had a lot of people sit in that chair, people in all kinds of different positions.

People at the federal level, the local level, the state level.

And, climate change always comes up because of how important it is.

It seems to me that there are some clear ways, not only some clear things that we have to do related to climate change, but talk about how your office actually innovates as it pertains to dealing with climate change.

- You're absolutely right.

And, you know, I don't understand how climate has been politicized because all you gotta do is open any newspaper, turn on any TV.

You know, at a given point, 17 parishes in Louisiana are, you know, under fire.

You're seeing what's happened in the Northeast around flooding.

God forbid what's been going on in Florida.

And, in California where it's such a beautiful place to live, but we get everything: floods, fires, earthquakes.

- Yes, we do.

- You name it.

Sea level rise.

And so, it would be reckless as a public official not to see the warning signs and see what's been going on.

The first thing I did when I got elected to this position is actually create a Climate and Resiliency branch within the Department of Insurance, the first in the nation.

- Right.

- 'Cause I realized that if we're gonna have much more devastating and cataclysmic environmental issues, that's gonna affect the insurance market.

- Right.

- And, I hate to say that I was right, but look at us now, where these fires have really, you know, done a number on who gets insurance, and who doesn't, and the cost.

And so, we have to have-- You know?

Insurance can no longer be an afterthought in this climate discussion.

Insurance and the insurance industry have to be brought in since the inception of us having these discussions around climate, fires, and floods.

Because, what happens after a flood?

Look at what happened in Pajaro up in Central California.

- That's right.

- You know, out of all thousands of people living there, only 500 people had flood insurance policies.

Who's gonna help them recover?

Who pays for them-- for the rest of the community who doesn't have flood insurance?

It's government.

So, it makes sense for government officials to start looking at creative ways to providing at least a minimal level of coverage for the entire community.

Because, what's gonna happen?

It's gonna exacerbate other problems.

If our low-income folks that might not have a flood insurance policy have to stay in their flooded home, well, guess what?

Mold sets in.

You don't have access to your medication, to food, 'cause most likely the electricity's out of your home.

And, if you're forced to still live in those conditions, you're gonna get asthma issues.

You're gonna get a whole host of other things that then just further complicate the cost for government.

So, why not work on creative solutions around climate insurance policies- which we're gonna be working on next year- to provide a minimal level of coverage for everyone so that everybody can get removed from their homes, find 'em a place to live, give them the resources they need to continue on with their lives?

And then, make sure that their home is, you know, taken care of so that they could come back to a nice, safe home.

And also, how do we use our natural resources to actually help us protect communities from future floods?

So, this is the exciting part for me around insurance, right?

Because, we get to now innovate.

And, you know, Mother Nature is the biggest advocate for what we're doing, because she's not letting up and she's forcing us to be very, very, very creative in a space and in an industry that traditionally has been very conservative and not wanting to be part of this kind of global discussion.

And so, now, I'm telling you, insurance and the insurance industry is there because we cannot live in a world that's not insurable.

- Mm hm.

- And, that's not the option.

The option is for us to be creative and help communities not only obtain insurance, making sure that our vulnerable areas are covered, but that it's also affordable so that working-class communities can actually afford to protect their investment.

- I was talking with one of your distinguished staffers before you got here and they said something that I want you to follow up on.

They said, "So, one of the things I like "about the commissioner is that he sees what he does through a social justice lens."

(Ricardo chuckles) Talk about that some, because a lot of folks don't get the piece-- here we are, state of California; diverse; going where the country will go.

In 2043, we'll be majority-minority.

That's what we are now already in California with all of its incumbent challenges and opportunities.

And so, it would seem like most of what one does, they would need to see through a social justice lens.

But, you do, and I'm glad that you do.

So, talk a little bit about that and educate us on that.

- Thank you.

That's an important question.

And, I'll tell you.

For me, it's really-- that's the only lens to look through because of just the historic disadvantages that I wouldn't even say "people of color".

I would just say "low-income folks" have suffered.

Because poverty is universal.

It's all colors, all ethnicities, all genders.

And, if you don't have that lens through-- sift everything through, then you're always gonna leave people behind.

- Mm hm.

- Again, when we talk about who has access to life insurance policies or where do insurance companies invest?

'Cause we're mandating them to invest in certain communities, right?

You can't just take, you know, people of color's premiums, and then invest them somewhere else.

You wanna invest them back in those communities.

- Sure.

- Because that's important, and that's part of our fabric of who we are as Californians, right?

And, the challenges that we, as Californians, face first because of how big we are or how diverse we are, gives you a preview of to what the country's gonna go through, you know, say in a couple years.

I always say, you know, "Stay tuned, 'cause whatever happens in California, you're gonna see in a neighborhood near you."

But, honestly, I'll tell you.

I'll never forget working for Senator Soto.

And, she would drive me through Pomona and pinpoint, you know, "This neighborhood here?

They lack water infrastructure."

And then, "Oh, look at this neighborhood over here.

They don't have sidewalks."

Or, "We've been trying to get a business district "in this part of Pomona because it's been, you know, abandoned for so long."

She's like, "Everything?

You look through this lens to make sure that you're helping our most vulnerable people."

And, those are the lessons that you learned as a staffer, and where you feel-?

You know, I felt her passion about giving back, because I'll tell you, public service is lonely.

It's exhausting, you know?

And sometimes, you feel like you just can't get it right.

Or, one mistake and there goes your entire political career, right?

And so, those are the things that, at the end of the day, make me get up in the morning and continue to fight, even after a fumble or a stumble, because I'm human.

Or, when you feel exhausted and you just feel like, "You know, should I continue doing this?"

It's those moments when you're able to help somebody, or when you kind of think back about seeing how proud she was about serving the Inland Empire and fighting for those communities, those are the moments that you have to reach back and bring back to the forefront and remind you of why it's important to do what you do.

Or, when-- you know, I have the honor to being the first openly gay person to win statewide office in California.

You would think this would've happened a long time ago.

But, when I get a letter from an LGBTQ child, or I'm in a school and somebody says, "I never thought I could be in politics until I met you"?

I mean, God, those are the moments that you have to grasp on!

And, after that, it doesn't matter what headline you read, or what negative comment you'll see, or what troll you'll read on the social media.

You're focused.

You're centered again, and you keep fighting.

And, those are the moments that I would say are the ones that, you know, remind you of how important your sacrifice and the hours that you put in to public service.

'Cause, look.

At the end of the day, where else than in California or in the United States can the son of a seamstress and a farmworker now serve the fifth largest economy in the world?

Or, be the first LGBTQ statewide elected official?

That doesn't happen anywhere in the world, but in the United States and here in California.

You know, we're not perfect as a country, definitely not as a state, but these stories are only possible in this amazing country of ours.

- That's excellent.

So, give us some homework.

How do we follow up with the Department of Insurance?

Can people walk in?

Or-?

And, how do we follow you on social media and those types of things where people can follow up and get more information?

- Absolutely.

I think the best way, you know, COVID has changed everything.

Really, our website.

There's a plethora of resources there at insurance.ca.gov There's a live chat feature where you can actually chat with somebody, real time, and you can get any answers to any of your insurance issues that you might have.

Again, everything from helping you understand your policy, to helping you understand what current, you know, policy you're in.

Or, you're opening a new business: "What kind of insurance do I need for, you know, my new taco truck?"

Or, taco shop?

Or, you know, beauty salon?

Those are all kind of different businesses.

We also have an outreach team that is committed to going out to city councils, county governments, which is also something new that we never had.

You know, I really wanted to get the department out of Sacramento, out of downtown LA, and into the community.

So, reach out to us.

If you're a local council member that wants more information around climate change and insurance, or how that's affecting premiums, we'll send somebody to your community, town council, city council, county government, to help explain.

Again, insurance touches every aspect of our life and now has become much more important during, you know, this climate challenge that we have.

So, we're here to help you and to assist you in whatever you need.

- So, Insurance Commissioner Ricardo Lara, thank you so much for being on.

I really appreciate the discussion.

- Thank you.

It's good to be here.

- And, we are glad that you joined us.

Keep joining us.

You can watch this episode, let other folks know they can watch it on our YouTube channel, just in case you don't catch it when it first runs.

Please continue to join us as we walk down the road to building bridges one conversation at a time.

Till then, thanks.

[uplifting music and vocals] ♪ ♪ ♪ ♪ [softer music] ♪ [hopeful flute/percussion] ♪ ♪ [music fades]