This paper proposes the creation of the California Wildfire Authority (CWA), a public-private reinsurance mechanism designed to stabilize California’s homeowners insurance market and sustain insurer participation amid escalating wildfire risk. Drawing on global catastrophe insurance programs, the paper identifies design principles that enhance resilience while preserving private market incentives. The proposed structure features mandatory insurer participation, layered cost-sharing across households, insurers, and government, actuarially sound and transparent pricing with targeted affordability support, and integration of verified mitigation measures. Pooling catastrophic losses statewide could reduce volatility, expand access to reinsurance and capital markets, and strengthen incentives for risk reduction. The analysis illustrates how a carefully designed wildfire program could enhance market stability and reduce reliance on ad hoc post-disaster interventions.