The mass migration persists
Several sources indicate that two more insurance companies are leaving the struggling California homes market.
In the next months, AmGUARD Insurance and Falls Lake Insurance will join other large insurers like State Farm, Allstate, and Farmers in ending their home insurance offerings.
The San Francisco Standard reported last month that the two corporations made their plans clear in papers with state officials.
In 2022, AmGUARD, a Berkshire Hathaway company, had homeowner insurance coverage for more than 50,000 people.
Losses “that were unusually high and not typical of the market as a whole,” as the deputy insurance commissioner Michael Soller phrased it, have plagued the company since its 2019 arrival in California.
He also noted that Falls Lake’s portion of the market is much smaller, with only about 900 residents.
Neither company has commented on their decision to leave, but other insurers have pointed to rising costs, an increase in the likelihood of natural disasters, and a regulatory climate that makes it difficult to get rate hikes authorised swiftly as reasons for their departure.
According to the North Bay Business Journal, more than a hundred companies are still active in the California house insurance market. The state’s FAIR Plan is another insurance option, however it is the “insurer of last resort.”
Experts in the insurance business are concerned that the exodus from the Californian vehicle insurance market will continue.
The American Agents Alliance, a trade group for independent insurance agents and brokers, has declared that “the automobile insurance market is in turmoil.” “As insurers terminate agency appointments and restrict the submission of business, our agents and the customers we serve are losing access to insurance markets.”
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