Update: Allstate Will Return to California on One Condition

Weekly Industry News ran a story last week explaining that Allstate is considering returning to California’s homeowners market. At that time the company had very little to say other than it is thinking of returning and let quotes by Allstate senior vice president of government relations, Gerald Zimmerman stand. He spoke up at a public hearing on California Insurance Commissioner Ricardo Lara’s attempt to update the state’s rate raising regulations and said if the new regulations on catastrophe modeling are adopted, Allstate will return.

“If the regulations were in effect today, we would begin selling new homeowner insurance policies tomorrow,” Zimmerman said. “Let me repeat that: As soon as we can use catastrophe modeling and incorporate the net cost of reinsurance into our rates, we will be open to business in nearly every part of California.”

Zimmerman’s statement makes Allstate the first insurer to say it will return to the California market if those changes are made. With those changes, Allstate says, it wants to increase its share of the state’s homeowners market.

Lara hopes to have his reforms completed by the end of 2024 and does not need legislative approval to put them into practice.

Source link: PropertyCasualty360.com — https://bit.ly/4dxXElO

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