California’s Insurance Commissioner Ricardo Lara has come under scrutiny after an investigation by ABC 7 News concluded he spent thousands of dollars of taxpayers’ money on trips bearing little relation to the insurance industry.
Newsweek contacted Lara and California Governor Gavin Newsom for comment on Thursday via email outside of regular office hours.
Why It Matters
California’s insurance industry has been under significant pressure in recent years with a number of major companies seeking to raise their prices in response to what they argue is an increasing risk from extreme weather.
In January swaths of Los Angeles County were devastated by wildfires that damaged or destroyed over 17,000 structures, causing billions of dollars’ worth of damage in what is estimated to be the largest wildfire insured loss in American history.
What To Know
Lara reportedly visited the United Kingdom, Egypt, Chile, Costa Rica, Uruguay, France, Japan, Singapore, Switzerland, Ireland, South Africa, Colombia and Guatemala as commissioner.
Visits cited by ABC7 News included a stay in New York City for PrideFest, which reportedly cost taxpayers over $11,600 for security, hotel stays and a rooftop party with “DJ Kitty Glitter” but featured “no insurance-related meetings.”
Similarly taxpayers were reportedly billed over $24,000 for Lara to attend an LGBTI Political Leaders Conference in Bogota, Colombia, including $7,000 for taxi fares, with no insurance meetings listed.
Referring to the event, Evan Low, a former Democratic South Bay Assembly member who runs the LGBTQ+ Victory Institute, said: “I don’t know the substance of what was discussed during that period of time, but the organization does convene a number of LGBT elected officials to talk about their experiences.”
Lara reportedly also claimed over $33,000 for his security detail alone for a two-and-a-half week stay in South Africa, which included just a two-day insurance conference after which he went on safari. According to ABC 7 News “receipts show taxpayers paid for his entire two-and-a-half-week stay” with expenses including hiking equipment.
California’s Insurance Deputy Commissioner Michael Soller said “tangible results” gained from Lara’s travel included “leading the fight against the Trump administration’s anti-woman and anti-gay healthcare regulations,” “climate risk reporting” and developing an “extreme heat ranking system.”
According to the San Jose Mercury News, Governor Newsom, a potential 2028 presidential candidate, has instructed his state insurance department and other agencies to investigate how to stop spiraling insurance costs in California.
What People Are Saying
Regarding Lara’s trip to Bogota his office said: “As the first openly gay person elected to lead a statewide office in California history, and one of the nation’s most visible gay leaders, Commissioner Lara was invited to speak on the fight for human rights — at the same time he was leading the fight for health insurance equality with other state insurance commissioners.”
Soller commented: “For all Department-funded travel, we comply with FPPC [California Fair Political Practices Commission] rules and reporting requirements.”
What Happens Next
The California Department of Insurance insists Lara complied with the relevant regulations regarding expenses. However, he could face pressure over his actions from the public and political rivals.
