The Hartford confirmed this week it should discontinue writing new owners insurance policies in California.

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

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

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

The Hartford stated it is going to be watching these efforts, and it proceed to write down all its different present merchandise in California, reminiscent of enterprise insurance coverage and private auto, and can proceed to resume present owners’ enterprise in step with its underwriting tips.

State Farm Normal 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 an identical transfer by Allstate Corp. final 12 months.

Different massive carriers which have introduced a lowered urge for food for writing California owners insurance coverage embrace American Worldwide Group (AIG) and Chubb.

A brand new report from Gallagher Re launched late final 12 months confirmed the specter of damaging wildfires along with inflation and pricing challenges has led to a distressed insurance coverage and reinsurance market, significantly in California.

Associated:

Matters
California
Owners