(2) The costs and benefits of authorizing insurers to include the cost of reinsurance as part of the rate for residential property insurance, including an analysis of the impact that reinsurance costs, or a portion thereof, would have on residential property insurance, consumers, and the marketplace if permitted within an approved insurance rate. The report shall also analyze the extent to which it is possible to separate out the risk of wildfires in California from the overall reinsurance premium price that reinsurers charge to admitted insurers for reinsurance, and the extent to which it is possible to separate out the reinsurance costs paid by insurers for insuring homes in high fire risk areas.
(3) The extent to which the establishment of a public wildfire catastrophe model would be appropriate for use in residential property insurance ratemaking. The report shall include an analysis regarding the best methodology that will support the use of probabilistic catastrophe loss modeling, subject to, and consistent with, the requirements of Proposition 103, approved by the voters at the November 8, 1988, general election, preserving public access and peer review of the public wildfire catastrophe model, and providing a means for public education on high priority actions that may be taken to reduce wildfire risks.
(b) For each aspect of the investigation, study, and report required by subdivision (a), the commissioner shall ensure public participation and conduct proceedings in accordance with Section 1861.10.
(c) On or before July 1, 2022, the commissioner shall submit the report required by subdivision (a) to the Chairpersons of the Assembly and Senate Committees on Insurance, the Speaker of the Assembly, the President pro Tempore of the Senate, and the Governor.