Consumer Watchdog has successfully negotiated a settlement with Stillwater Insurance Company, leading to a significant reduction in a proposed rate increase for homeowners’ insurance. This agreement, finalized on September 23, 2025, will save over 73,000 policyholders approximately $13 million.
Initially, Stillwater sought a 27.5% rate increase. However, after Consumer Watchdog challenged this proposal, arguing it was excessive, the California Department of Insurance intervened. The challenge was based on California’s Proposition 103, which mandates that insurers justify rate changes before implementation.
Successful Negotiations Yield Lower Rate Increase
Consumer Watchdog targeted Stillwater’s methodology for estimating projected losses, asserting that it inflated the rate indication. Following several discussions and shared information between the parties’ actuaries, they reached a consensus on a 12.4% rate increase—less than half of what was originally requested.
Ryan Mellino, a staff attorney at Consumer Watchdog, emphasized the effectiveness of Proposition 103’s consumer intervention provisions. He stated, “This rate proceeding demonstrates how Proposition 103’s consumer intervention provisions work effectively when insurers come to the table in good faith.” The timely resolution reflects the collaborative effort between Consumer Watchdog and Stillwater, benefiting both the company and its policyholders.
The newly approved rate is set to take effect on November 27, 2025. As part of California’s voter-approved insurance reform law, Proposition 103 requires insurers to maintain transparency regarding their financial needs when proposing rate increases. This law enables consumer representatives to review and contest unjustified rates and practices.
Impact of Proposition 103 on California Consumers
According to the Consumer Federation of America, Proposition 103 has saved California motorists over $154 billion since its inception in 1989. Over the past 22 years, Consumer Watchdog has successfully challenged unfair rates, saving California consumers more than $6.5 billion across various sectors, including auto, home, and medical malpractice insurance.
This settlement not only highlights the importance of regulatory oversight in the insurance industry but also underscores the role of consumer advocacy in protecting homeowners from excessive rate hikes. For further details about Proposition 103, interested parties can visit the Consumer Watchdog website.
This successful settlement illustrates the ongoing efforts to ensure that insurance rates remain fair and justified, ultimately benefiting consumers across California.
