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California loses two more property insurers in growing crisis

Two more insurance companies are ending property and casualty coverage in California, adding to the growing list of insurers fleeing the state as the crisis worsens.

Tokio Marine Holdings’ companies Tokio Marine America Insurance Company and Transpacific Insurance Company have filed notices with the California Department of Insurance saying they will no longer offer homeowners and umbrella insurance in the Golden State.

California homeowners are facing loss of insurance coverage and rising premiums as companies flee the state. (Photographer: David Paul Morris/Bloomberg via Getty Images/Getty Images)

The measure will affect more than 12,500 policyholders, who are expected to receive non-renewal notices from July 1.

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Tokio Marine Holdings said in an emailed statement: “Given the small scale of our personal line business and rising costs, we are unable to sustainably support personal line coverage. I have no plans to return.” to bloomberg. “We remain fully committed to our commercial routes in California and across the nation, supporting our agents and customers with exceptional service through this transition.”

FOX Business has reached out to Tokio Marine Holdings for comment.

Street in Fremont, California

Property and casualty insurance companies are leaving California in what the state’s insurance commissioner has described as a “real crisis.” (license/image)

The decision was the latest blow. california property ownersas insurance companies continue to raise rates or drop coverage for their customers.

In 2022, insurance giant Allstate suspended the sale of new home insurance policies in California, citing wildfires and rising costs of doing business in the state.

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State Farm also announced last year that it would no longer accept new home insurance applications in California, citing “historic” increases in construction costs and inflation.

state farm insurance sign

A sign posted in front of the State Farm Insurance office in Berkeley, California, on January 3, 2024. State Farm announced on March 20 that it would terminate 72,000 insurance policies in the Golden State. (Justin Sullivan/Getty Images/Getty Images)

California Insurance Commissioner Ricardo Lara after State Farm announced last month that it would cut insurance coverage for 72,000 California homes and apartments, citing inflation, regulatory costs and increased risk from catastrophes. said the following: told KCRA“This is a real crisis.”

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According to KCRA, seven of California’s 12 largest insurance groups have suspended or limited insurance policies for new homeowners in the past year.

FOX Business’ Chris Pandolfo and Kristine Parks contributed to this report.

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