The Hartford latest to pull back from California homeowners insurance
The Hartford latest to pull back from California homeowners insurance | Insurance Business America
Property
The Hartford latest to pull back from California homeowners insurance
California homeowners insurance pause follows Allstate, State Farm, USAA actions
The Hartford has become the latest insurer to pull back from homeowners insurance in California.
The Hartford will no longer offer new personal property insurance coverage in California from February 1, a spokesperson confirmed to Insurance Business.
“The homeowners’ insurance environment in California has unique challenges that have required us to reconsider the viability of writing new homeowners’ business in the state,” The Hartford spokesperson said. “Based on these challenges and our analysis of the trends, we have decided to stop offering new homeowners policies starting Feb. 1, 2024.
The homeowners pull back does not affect The Hartford’s other existing products in California, including business insurance and personal auto insurance.
The Hartford will “continue to renew existing homeowners’ business consistent with our underwriting guidelines,” the spokesperson said.
The insurer has a homeowners insurance market share of less than 1% in the state, according to S&P Capital IQ data.
The Hartford is the latest insurer to push pause on California’s trouble homeowners insurance market
The Hartford’s new homeowners insurance business pause, first reported by The San Francisco Standard, is the latest in a tide of insurer pullbacks from the wildfire-prone state.
Other insurers to have announced withdrawals include Kemper and CSE Insurance Group.
California Insurance Commissioner Ricardo Lara has introduced reforms aimed at stemming an insurer exodus
California’s Insurance Commissioner Ricardo Lara has sought to tackle the homeowners insurer exodus with the Sustainability Insurance Strategy, hailed as the largest insurance reform initiative since the introduction of Proposition 103 in 1988.
The strategy was welcomed by the American Property & Casualty Insurance Association (APCIA) as including the “first steps of many” needed to address California’s spiraling insurance crisis, though a California broker association leader has deemed them “long on hope and short on specifics”.
“We do not enter into this decision lightly, and we appreciate and support efforts like Commissioner Lara’s Sustainability Insurance Strategy to help bring stability to the market,” The Hartford spokesperson told Insurance Business.
The insurer spokesperson said it will be “watching those efforts closely”.
Got something to say about California insurance exits and The Hartford’s pull back? Sound off in the comments below.
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