Travelers is looking at raising insurance rates for homeowners in California. Michael Klein is the company’s president of personal insurance. He said after two years of heavy losses in a row, “I think the discussion and the debate about the environment is pretty broad and pretty public.”
He said Travelers is currently in discussions with the California Department of Insurance to increase homeowners prices. In the fourth quarter of last year, between the California wildfires and Hurricane Michael, Travelers lost $610 million.
That’s an increase of 22%.
Those conversations are including Travelers not renewing some of the business it does in the state. Travelers — with department approval — originally began restricting the appetite for new business in 2017.
The company wants to add even more underwriting procedures that will limit what it writes.
Insurance and political experts say it is very likely this is just the tip of the proverbial ice berg.
Source link: Insurance Business America