California Sees Two More Property Insurers Withdraw From Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 18 2024
0mins
Source: Bloomberg
- California Property Insurance Market: Facing challenges as two insurers, Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., plan to withdraw from the state due to wildfire risks.
- Impact of Withdrawal: 12,556 policies with premiums of $11.3 million will be affected by the decision.
- Trend Among Insurers: Major insurers in California are reducing coverage due to risks from wildfires and climate change.
- Regulatory Response: California's Insurance Commissioner announced a regulatory overhaul to encourage insurers to return by allowing them to consider future climate risks in pricing.
- Future Outlook: Details of the regulatory changes are pending, with potential implementation by December to stabilize the market.
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.
