California’s insurance market is in upheaval, and award winning Neera Sharma isn’t sugarcoating what that means for brokers.
As president of wholesale brokerage Coastal Brokers Insurance Services, Sharma has been navigating an increasingly volatile landscape where carriers are pulling out, risks are mounting, and brokers are left scrambling to secure coverage. “It is a very, very challenging time for California,” she said bluntly. “A lot of insurance companies are not willing to offer, and this has become our biggest headache.”
At the heart of the disruption is the state’s FAIR Plan - originally designed as a last-resort option for high-risk properties, which is now dominating swaths of the market and displacing private insurers.
“Most of the time, what we're hearing back is, ‘Hey, Nira, our client has decided to go with the FAIR Plan property quote,’” Sharma explained. “So can you just quote the GL?” That leaves brokers like Coastal providing only general liability (GL) coverage, while the FAIR Plan captures the property portion. “We’re not losing to another private insurer,” she said. “We’re losing the business to the FAIR Plan.”
The insurers’ retreat stems from mounting financial losses tied to wildfires, landslides, and earthquakes. For Sharma, the focus has shifted to innovation - keeping coverage available even as traditional options dwindle. “We're trying to find ways to write coverage,” she said. “Maybe offering a new product that excludes fire, pairing that with non-fire property coverage, GL, and the remnants of the property site.”
This creative approach requires close collaboration with carriers willing to entertain new solutions. “We’re pushing the markets to think differently,” she added, “because the conventional models aren’t holding.”
Looking to 2025, Sharma sees both challenge and opportunity. “The new product I want to focus on recognizes that the FAIR Plan is going to take the property side,” she said. “We need to develop wrap products that combine the leftovers - business income, GL - and package them for clients.” It’s a strategic pivot: identifying gaps left by major carriers and tailoring solutions that serve both brokers and insureds.
But beyond immediate survival, Sharma is eyeing broader economic shifts. One potential bright spot? The resurgence of domestic manufacturing. “I’m hopeful that some manufacturing will return from Mexico,” she said. “That gives me hope to write more products. We’ll be focusing more on new GL options - and, as always, we’ll have to be innovative.”
The road ahead won’t be easy. The insurance market’s complexity is only increasing, and the risks aren’t going anywhere. But Sharma remains convinced that adaptability is the broker’s best weapon. “Yeah, yeah. We’ll have to be innovative in order to survive. That’s what it is,” she said. “If we lose one, we’re going to find the next product.”
For brokers, the challenge isn’t merely about securing coverage - it’s about keeping pace with a rapidly evolving industry. Sharma sees this firsthand, especially as many veteran brokers prepare to retire. “A lot of baby boomers are leaving the market. But I see this as an opportunity - to embrace technology, to learn the products, and to move faster.”
In her view, long-term success rests on three pillars: speed, product knowledge, and pricing. “A combination of the three is still a winner,” she said. Staying ahead of market shifts, pricing swings, and emerging risks is key. But above all, Sharma emphasizes the human element. “If you’re innovative, if you’re picking up the phone, talking to clients, providing the knowledge they need, and educating newcomers, you’ll win.”
Her message is clear: complacency has no place in California’s insurance market. As carriers exit and risks escalate, it’s the brokers and MGAs willing to reinvent themselves who will endure. “It’s about survival,” Sharma said. “And survival means finding the next solution - because waiting for the old market to come back? That’s not happening.”
