The Hartford to Discontinue Writing New Householders Insurance policies in California

The Hartford confirmed this week it is going to discontinue writing new householders insurance policies in California.

The provider reportedly has lower than 1% of the state’s householders market.

The Hartford issued the next assertion follwing a request for remark for this text:

“The householders’ insurance coverage atmosphere in California has distinctive challenges which have required us to rethink the viability of writing new householders’ enterprise within the state. Based mostly on these challenges and our evaluation of the developments, we have now determined to cease providing new householders insurance policies beginning Feb. 1, 2024. We don’t enter into this determination calmly, and we admire and help efforts like Commissioner Lara’s Sustainability Insurance coverage Technique to assist convey stability to the market.”

The Hartford mentioned will probably be watching these efforts, and it proceed to jot down all its different current merchandise in California, resembling enterprise insurance coverage and private auto, and can proceed to resume current householders’ enterprise in line with its underwriting tips.

State Farm Common Insurance coverage Co. introduced on the finish of Could that it had stopped accepting new coverage purposes 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 massive carriers which have introduced a decreased urge for food for writing California householders insurance coverage embrace American Worldwide Group (AIG) and Chubb.

A brand new report from Gallagher Re launched late final yr confirmed the specter of damaging wildfires along side inflation and pricing challenges has led to a distressed insurance coverage and reinsurance market, significantly in California.

Associated:

Subjects
California
Householders