California Sees Two More Property Insurers Exit From Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 18 2024
0mins
Source: Bloomberg
- California Property Insurance Market Challenges:
- Two insurers, Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., are planning to withdraw from California due to wildfire risks.
- The decision will impact 12,556 policies with premiums totaling $11.3 million.
- Other major insurers in California have also reduced or ended coverage due to natural disaster risks.
- Efforts to Stabilize the Market:
- California's Insurance Commissioner announced a regulatory overhaul to address climate risks and reinsurance costs for insurers.
- The plan aims to encourage insurers to offer more coverage in fire-prone areas.
- Details of the regulatory changes are still pending, with potential implementation by December.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
