Consumer Watchdog Wants to Cash In on Another Catastrophe

To: Interested Parties

From: Nicole Ganley, APCIA

Re: Consumer Watchdog Attempting to Cash in on Catastrophe - Again

It's no secret that Consumer Watchdog-an organization that admitted to the Department of Insurance that it has zero members - has pocketed tens of millions of dollars in Intervenor Fees from the Department's Intervenor Fee program , which it created decades ago when it wrote Prop 103. In fact, a report last week revealed that Consumer Watchdog's Santa Monica advocates received 100 percent of CDI's intervenor funds in 2024 , billing more than $650 per hour for its services.

But wait. There's more! Now, Consumer Watchdog is aiming to cash in on another catastrophe!

In January, the Department launched the Pre-Application Required Information Determination (PRID) process for its catastrophic modeling program, part of the Department's new Sustainable Insurance Strategy. The process is designed to ensure transparency, accountability, and public participation in reviewing catastrophe models used for insurance rates.

Consumer Watchdog has said it wants in on the PRID process and wants to charge the state hundreds of thousands of dollarsfor its participation.

One new filing with CDI shows that Consumer Watchdog wants to charge the state at least $177,375 in consulting fees as a "Model Advisor" for catastrophe modeling. The group's founder Harvey Rosenfield demands $695 per hour just to "Participate in discussions on Consumer Watchdog's positions, particularly as they relate to compliance with Prop 103." And they're not stopping there. The group is also proposing the state pay for an army of other lawyers it employs.

Another filing asks for $179,625 for similar "services."

While yet another filing requests $167,375 for additional consulting.

In total, Consumer Watchdog hopes to pocket a whopping $524,375 for its participation in the PRID process.

Meanwhile, none of the other entities applying to participate in the PRID process requested a dime in their proposals, including the California Fire Safe Council, Stanford's Climate and Energy Policy Program, and RAND's Kenneth R. Feinberg Center for Catastrophic Risk Management and Compensation.

Consumer Watchdog claims to represent consumers, but it's clear they're only out for themselves.