Allstate Says it Might Return to California’s Homeowners Market

Allstate stopped issuing new policies in California a couple of years ago. The company is now thinking of returning to the market. It does — however — depend on whether Allstate can use catastrophe modeling as a tool for rate increases.

"Once home insurance rates fully reflect the cost of providing protection to consumers, we’ll be able to offer home insurance policies to more Californians with timely rate approvals, the use of our advanced wildfire modeling and reinsurance costs,” Allstate said in a news release.

Time will tell whether Allstate returns or not.

On another note, Victoria Roach — president of California’s FAIR Plan — said the insurer of last resort is now one of the largest insurer of residential property in California. This, in spite of trying to push many policies back into the private sector.

And it, too, is trying to get the California Department of Insurance to let the FAIR Plan raise its rates.

Source link: Insurance Business America — https://bit.ly/3JIVrqi