The California insurance crisis laid bare by the Los Angeles fires was fueled by "regulatory failure," economist Nancy Wallace told Newsweek.

In a new commentary, AM Best notes that policyholders in California had increasingly turned to the state's insurer of last resort and nonadmitted market for homeowners' coverage prior to the wildfires due to reduced availability from primary insurers.

The nation’s growing home insurance crisis is in the spotlight as Californians begin the long road to rebuilding after the deadly Eaton and Palisades wildfires.