State Farm To Longer Accept Any New Property, Casualty Insurance Applications In CA
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State Farm Insurance, the largest property and casualty insurance company in California, announced Friday they would no longer be accepting new applications for any kind of insurance other than personal vehicle insurance due to large increases in construction costs and inflation.
The Illinois-based company specifically noted in a press release on Friday that all new applications for business and personal lines property and casualty insurance will no longer be accepted in California beginning May 27th.
“State Farm General Insurance Company, State Farm’s provider of homeowners insurance in California, will cease accepting new applications including all business and personal lines property and casualty insurance, effective May 27, 2023,” said the company in a press release on Friday. “This decision does not impact personal auto insurance. State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.”
“We take seriously our responsibility to manage risk. We recognize the Governor’s administration, legislators, and the California Department of Insurance (CDI) for their wildfire loss mitigation efforts. We pledge to work constructively with the CDI and policymakers to help build market capacity in California. However, it’s necessary to take these actions now to improve the company’s financial strength. We will continue to evaluate our approach based on changing market conditions. State Farm independent contractor agents licensed and authorized in California will continue to serve existing customers for these products and new customers for products not impacted by this decision.”
While insurance companies have been reducing their presence in California in the past few years, some have made it harder for residents to obtain insurance, such as GEICO closing down all 38 of their offices in the state last year and State Farm raising driving insurance rates in March. A complete pull out of new insurance applications deals a major blow to the state.
“Costs, inflation, growing catastrophe exposure, that last one meaning wildfires, have all played a part in insurance companies balking at California,” explained Trevor Connery, a lobbyist who has worked for insurance companies in the past, to the Globe on Friday. “But even Farmers, GEICO, and others still off full services. State Farm has just been seeing too many claims and really doesn’t want to risk more right now.”
This begs the question whether other insurers will see an opportunity to pick up market share, or will believe that there’s no benefit in holding market share in a market that poses no possibility of profit and follow State Farm out the door.
Like a good neighbor State Farm is where?
When a company is paying out $1.30 for every dollar they take in, they can’t make it up in volume!
We need to manage our forests and open space to reduce the risk of wildfires that our devastating our state. And wouldn’t that lumber help bring down the cost of rebuilding if we didn’t withhold it all from the markets?
The reality of the stupid Eco Environmentalists is hitting home.
No prescribed burns, no fire breaks, allowing non native species to take over forests…..getting it yety.
Terrible policies fueled by Socialists Dictators, and now they want to destroy water storage.
Does it get much better for Capitalists and Small Gov. advocates?
AOC hires a Communist for years to run her offices. Democrats in the North East advocate Revolution. Denver attacks Capitalism….
And you voted Democrat why?
If you wanted professional, unbiased, factual, state of the art, coherent, apolitical, and meaningful news that supports the decline in America under the Marxist democrat led onslaught… this is it.
Insurers keep very close tabs on the cause and effect of government interference in the private sector. It reacts quickly to every factor that matters in our economy. Its business model demands it.
America is on the skids heading toward a recession and the commander in chief’s administration is working diligently to grease the skids. And lying about it.
Time to wake up America. Send the woke dysfunctional democrat incumbents home to stew in their multi million dollar estates. They have failed us miserably. VOTE IN the Patriots we need to Make America Great Again. Again.
An old friend told me in 1980 that environmentalists are going to destroy California.
Since then, paying attention to stupid decisions made by California politicians driven by asinine environmentalists, I have seen what he warned us about 40 years ago.
With so many people in California finally realizing the destruction caused by democrats, you have to wonder why and how so many democrats continue to get elected in this declining state.
I believe it proves there is no such thing as an honest election in California.
Money and political power buys elections and democrats have the most money and currently power.
Socialism, almost communism, is alive and growing in our once great state of California.
All part of the plan to make everyone dependent on the government, the elite already are but they benefit from the oligarchy. The rest are slaves to it.