California's levy of $1 billion on private insurers to help pay out wildfire claims in its state-run program has renewed focus on the challenges the industry faces in a market already losing appeal rapidly,

The bailout will be funded by the state's private insurers, but a new rule says they they can pass up to half of the cost on to customers.

The move will likely lead to higher costs for households across the state, and may push more insurers to leave, intensifying a home insurance crisis.