Impacted by wildfires or winter weather? Whether you have a business that's been affected or your personal home and assets are damaged, know that you have a team of people to support you. Find resources here.
On this leg of our road trip across America, we are hitting the open road, taking in the rugged coastlines of the Pacific—stopping for fresh Dungeness crab in Washington, savoring a poke bowl in Hawaii, and grabbing a burrito in California. Our trip along Interstate and across the Pacific Ocean will take us through Alaska, California, Hawaii, Oregon, and Washington.
From the icy fjords of Alaska’s Inside Passage to the sun-drenched vineyards of Napa Valley, the volcanic peaks of Hawaii’s Big Island, and the lush forests of the Pacific Northwest, buckle up as we explore the twists and turns of the Pacific insurance landscape in 2026. We’ll review the risks that shape the region, the challenges facing home and auto insurance, the legislative developments, and the emerging liability and cyber threats that could impact your coverage and costs.
Our road trip begins in Alaska, where winter storms are the expectation, not the exception. While cruising the Seward Highway with snow-dusted peaks in the background, icy roads and heavy snowfall can cause costly damage to homes and vehicles. The remnants of Typhoon Halong brought hurricane-force winds to the western part of the state last year. The flooding displaced over 1,500 people, destroyed approximately 90% of homes in Kipnuk, and swept away about one-third of homes in Kwigillingok.
As we roll south into Washington and Oregon, coffee cups multiply as the aroma of freshly brewed blends fills the air and lush forests stretch endlessly. But the smell of wildfire smoke has followed us here, too. The Rowena fire in Oregon and the Burdoin fire in Washington burned thousands of acres and devastated neighborhoods last year as well. Flooding is another risk in Washington. Recently, intense rainfall led to historic river flooding in December, burst levees, and forced evacuations for tens of thousands in western Washington.
Heading south to California, the air warms, and suddenly we’re flanked by redwoods, palm trees, and sun-bleached highways. But beneath California’s golden glow lies a constant threat crackling in the hills. Beneath the Golden State’s towering redwoods is the ongoing battle to prevent and contain wildfire outbreaks. Thousands of wildfires burned through more than half a million acres in 2025, with the devastating Los Angeles County wildfires in January 2025 burning for several weeks. The Palisades and Eaton wildfires, the second and third most destructive fires in California’s history, ripped through over 50,000 acres and destroyed nearly 16,000 homes and businesses, driven by Santa Ana wind gusts over 80 mph. A drought, high grass loads, and weakening coastal moisture contribute to the wildfire threat in the southern part of the state. As a result, many insurers have reduced their coverage or withdrawn from high-risk areas of the state.
"Weathered: After the LA Firestorm" PBS Documentary from January 2026.
And if the road suddenly rattles? That’s not just a bad suspension. Earthquakes are another significant risk to consider, particularly with the San Andreas Fault running through California. A 5.2-magnitude earthquake rocked San Diego in 2025—rattling homes and zoo animals at the famed San Diego Zoo.
Now we hop a plane—because even the best road trip needs a break from the open road—and touch down in Hawaii. Palm trees sway, poke bowls beckon, and the sunsets are unreal. However, beneath the postcard-perfect image lie risks from tropical cyclones, tsunamis, flash flooding, and relentless rainfall. Paradise, as it turns out, carries a premium price tag. We catch a red-eye back to San Francisco and find ourselves among the painted ladies and hilly neighborhoods of the Golden State.
We're easing off the gas as we creep down Lombard Street in San Francisco—famously dubbed the “crookedest street in the world.” With its hairpin turns and steep winding hills, it mirrors California’s homeowners' insurance market, where capacity remains tight, as carriers pull back from wildfire-prone and high-net-worth areas. Homeowners are experiencing rising premiums, but our team of insurance professionals believes that allowing rates to climb is necessary to restore market balance and bring back competition, which is ultimately what consumers need in this region.
Homeowner insurance rates for California residents.
In the lush, evergreen landscapes of Oregon and Washington, the road smooths out a bit, but wildfire smoke still lingers in the air. Here, homeowners' insurance rates level off, with these states boasting some of the lowest rates in the country. The journey hasn’t been without a few potholes—Oregon lost several insurance carriers in the last four years due to the rough economy and rapid inflation. Our team of advisors encourages homeowners to think about insurance as a long-term relationship, not just an annual bill to shop for. They recommend checking the financial security rating of insurers to help ensure they will be in business long-term to protect your assets.
Hawaii also consistently ranks among the most affordable states in the nation for homeowners' insurance. Still, the frequency of natural disasters makes supplemental coverages, such as hurricane or windstorm insurance, a consideration for many homeowners. Hurricane deductibles are often based on a percentage of the property value, meaning deductibles for named storms can come with a much larger out-of-pocket expense compared to many other losses. The market has seen a decline in insurer participation, particularly for new hurricane policies, resulting in fewer carriers offering extensive coverage. Legislators are working to improve the market by expanding the Hawaii Property Insurance Association’s powers and reactivating hurricane relief funds.
The homeowners' insurance market in Alaska is generally more affordable than in other parts of the Pacific and the country. Annual premiums for standard homeowners policies often fall well below the national average. Due to Alaska’s unique geography, remote or high-risk areas often face higher premiums or limited options, primarily due to logistical challenges and underwriting caution.
During a California wildfire and wind event, one of our clients’ homes was damaged by smoke and soot. Thanks to first responders applying fire retardant around the property, the house survived.
Our client reported the claim, and the insurer arranged inspections of the home and landscaping. Stains settled into the interior and exterior of the property, and there was damage to the roof and stucco. The insurer’s appraiser estimated repair costs, while the client gathered contractor estimates.
Initially, the insurer challenged the claim, disputing contractor labor rates, applying two separate deductibles for wind and fire damage, and denying coverage for landscaping damaged by the fire retardant. The insurer argued landscaping was only covered if damaged directly by fire, not by fire retardant.
Working closely with the client, our advisors reviewed pre-fire photos and consulted contractors to clarify repair needs, held multiple meetings and inspections. Ultimately, the insurer agreed to cover the client's initial ask and consolidated all damages under one claim—saving our client valuable time and potentially reducing out-of-pocket costs.
On the open road along the Pacific coast, the speedometer on auto insurance is rising in California. The Golden State leads the Pacific region with rate increases fueled by tight capacity and rising claims costs. It’s like trying to find a parking spot in downtown Los Angeles on a Friday night—the odds are not in your favor.
Auto insurance rates for California residents.
Overall, Americans are paying almost 20% more on average than they did a decade ago due to higher repair costs, government regulations, and severe weather. Trends show that drivers in Alaska, Washington, Hawaii, and Oregon pay less than the national monthly average of $180 for full coverage insurance, with Alaska drivers receiving some of the most affordable rates at $114 per month.
Every good road trip needs a passenger watching closely for signs—looking out for the next gas station, exits, and detours.
California Senate Bill 446 requires businesses and individuals that experience a data breach involving the personal information of California residents to notify affected consumers within 30 days of discovering the breach. They must also submit a sample notification to the California Attorney General within 15 days if the breach involves more than 500 residents.
Oregon is putting up clearer signs to help drivers understand the twists and turns in their premium journey. House Bill 2563 requires insurers to provide a plain-language explanation if your insurance premium takes an unexpected turn upward at renewal, but only if you ask. It’s like finally getting a heads-up on why traffic’s backed up ahead, making the ride a little less stressful and more transparent.
Meanwhile, Senate Bill 752 in Hawaii requires insurers to provide at least 30 days' notice before policy cancellation and 60 days' notice before nonrenewal. That extra time gives policyholders more time to secure alternative coverage and reduce disruptions.
Liability insurance in the Pacific is a challenging market, especially in California, where high social verdicts drive up costs. California residents face a heightened risk of costly civil lawsuits, with Los Angeles courts frequently labeled as a “Judicial Hellhole” by the American Tort Reform Foundation due to their plaintiff-friendly rulings—which included a nearly $1 billion punitive damages award issued in October 2025 against Johnson & Johnson.
Washington courts, particularly in King County, are also considered plaintiff-friendly, contributing to the state’s high tort tax ranking. The Evergreen State ranked among the states with the highest per-capita nuclear verdicts in recent years, driven by toxic exposure cases that have resulted in verdicts far above typical damages.
Liability insurance rates for California residents.
This road trip takes place on a high-tech toll road, where there’s a growing threat of cyberattacks. We brace for a bumpy ride where every click and connection can cause our navigation system to crash.
Alaska: In 2025, Alaska faced several cybersecurity issues, including a reported data breach at an Anchorage health clinic affecting around 60,000 patients after hackers claimed to leak records. Additionally, federal authorities issued warnings about botnets, DDoS attacks, internet fraud, and scams targeting Alaskans’ internet-connected devices.
California: An emergency notification system used by several Northern California counties was hacked, exposing user data like names, addresses, and phone numbers.
Hawaii: In 2025, Hawaiian Airlines disclosed a cybersecurity incident affecting some of its IT systems, although flight operations reportedly continued; this underscores cyber risk to critical travel infrastructure in Hawaii.
Oregon: Oregon experienced a significant ransomware-related episode in which a group stole and uploaded millions of Oregon Department of Environmental Quality files to the dark web, interrupting services like vehicle emissions testing and exposing sensitive data.
Washington: The state saw an all-time high in data breach notifications reported through its Attorney General’s office in 2024. Despite a decrease in 2025 of more than $8 million in associated costs, Washingtonians were still affected.
Before we hit the final stretch of highway, let’s do a quick safety check. Last September, we hosted our inaugural Risk and Resiliency Symposium, bringing together experienced professionals to share strategies for tackling climate risks and building stronger communities. In the Pacific region, insurers are increasingly looking for proof that your home can handle fire, wind, water, and the unexpected. These upgrades and habits may make a positive impression on insurers when it comes to resiliene, pricing, and long-term insurability:
The key to navigating 2026’s insurance landscape in the Pacific is preparation and partnership. From California’s wildfires to Hawaii’s hurricane season, understanding the unique risks and market dynamics in each state empowers you to make informed decisions.
Insurance isn’t a one-time ticket—it’s a long-haul companion. Review your coverage regularly, invest in resilience, and choose carriers wisely. And when the road gets rough, consider working with experienced Marsh McLennan Agency insurance brokers to help guide you through your options.
Request an insurance review with an experienced Personal Risk Advisor to ensure you're adequately insured for whatever life may bring.
Portland, OR
San Diego, CA
Butte, MT
