The corporate’s withdrawal from the California owners market follows comparable actions by State Farm, Allstate, Farmers Insurance coverage, USAA, Kemper, and CSE Insurance coverage Group based mostly in Beaverton, Oregon. Inside a span of lower than a yr, all seven insurers have both diminished protection or exited the state, as beforehand reported.
Confirming the transfer, Suzanne Barlyn, a spokesperson for The Hartford, based mostly in Connecticut, reiterated the corporate’s stance by means of a proper assertion.
The choice underscores the evolving dynamics inside the insurance coverage trade, notably in areas like California, the place insurers face mounting challenges amid shifting regulatory landscapes and escalating dangers related to local weather change and pure disasters.
The insurer said the choice doesn’t impression its different merchandise.
“(We) proceed to put in writing all our different current merchandise in California, reminiscent of enterprise insurance coverage and private auto, and can proceed to resume current owners’ enterprise in step with our underwriting pointers,” the assertion revealed.
It continued: “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 traits, we’ve got determined to cease providing new owners insurance policies beginning Feb. 1, 2024.”
The Hartford declined to offer particular feedback concerning the impression on owners within the North Bay area. Nevertheless, knowledge from S&P Capital IQ signifies that The Hartford’s market share for owners’ insurance coverage in California is lower than 1%. Notably, The Hartford serves because the unique supplier of residence insurance coverage for AARP members, suggesting that the 55-plus demographic in California could be disproportionately affected by the insurer’s choice. Regardless of inquiries, each AARP and The Hartford avoided addressing this concern.
California’s Insurance coverage Commissioner, Ricardo Lara, launched the Sustainability Insurance coverage Technique in September, hailed as essentially the most important insurance coverage reform within the state in 35 years. The technique goals to reinforce insurance coverage choices and safeguard Californians from escalating local weather threats whereas making certain the long-term sustainability of the state’s largest insurance coverage market.
Though The insurer didn’t explicitly attribute its choice to years of main wildfires, floods, or different climate-related hazards in California, its assertion suggests a correlation with these components.
“We don’t enter into this choice evenly, and we admire and assist efforts like Commissioner Lara’s Sustainability Insurance coverage Technique to assist convey stability to the market. We shall be watching these efforts carefully,” the official assertion stated.