The Hartford has pulled the plug on writing new homeowners policies in California. It joins State Farm, Farmers, USAA and other insurers in bolting from the state’s homeowners market.
The decision was announced with very little notice to consumers. A company spokesperson said The Hartford will not be offering new policies in California starting on February 1st.
“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 person said. “Based on these challenges and our analysis of the trends, we have decided to stop offering new homeowners policies starting Feb. 1, 2024.
To be fair, unlike State Farm and Farmers, The Hartford doesn’t have that many insureds in California and has less that 1% of the homeowners market share.
As for existing policies, the company said it will continue to renew them but with a keen eye on underwriting guidelines.
And like State Farm, Farmers and the other companies leaving the California homeowners market, The Hartford will still be writing policies for its other products including personal auto and business insurance.
The company’s decision to leave the market comes in spite of California Insurance Commissioner Ricardo Lara’s push to stop the insurer exodus and get companies to return. Supporters are calling his Sustainability Insurance Strategy as the most important insurance reform since Proposition 103 in 1988.
Many insurance associations like the PIA are watching Lara’s plan with a hopeful but wary eye. So is The Hartford.
“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 said.
The homeowners pull back does not affect The Hartford’s other existing products in California, including business insurance and personal auto insurance.
Source link: Insurance Business America — https://bit.ly/3vTKtKJ