The Hartford confirmed this week it is going to discontinue writing new owners insurance policies in California.
The service reportedly has lower than 1% of the state’s owners market.
The Hartford issued the next assertion follwing a request for remark for this text:
“The owners’ insurance coverage setting in California has distinctive challenges which have required us to rethink the viability of writing new owners’ enterprise within the state. Primarily based on these challenges and our evaluation of the developments, we now have determined to cease providing new owners insurance policies beginning Feb. 1, 2024. We don’t enter into this choice evenly, and we admire and help efforts like Commissioner Lara’s Sustainability Insurance coverage Technique to assist deliver stability to the market.”
The Hartford stated it will likely be watching these efforts, and it proceed to jot down all its different present merchandise in California, comparable to enterprise insurance coverage and private auto, and can proceed to resume present owners’ enterprise in line with its underwriting pointers.
State Farm Common Insurance coverage Co. introduced on the finish of Might that it had stopped accepting new coverage functions for property/casualty insurance coverage in California for causes together with elevated dangers from wildfires and inflation. The choice adopted the same transfer by Allstate Corp. final yr.
Different giant carriers which have introduced a lowered urge for food for writing California owners insurance coverage embody American Worldwide Group (AIG) and Chubb.
A brand new report from Gallagher Re launched late final yr confirmed the specter of damaging wildfires along with inflation and pricing challenges has led to a distressed insurance coverage and reinsurance market, notably in California.
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