Yet another home insurance giant quietly stops writing new policies in California

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June 1, 2023
Homes burned in the Mosquito Fire are seen in Placer County in September. Fire risk was one reason cited by State Farm for ceasing to write new home insurance policies in California. What prompted a similar pullback from Allstate last year was not immediately clear.
Homes burned in the Mosquito Fire are seen in Placer County in September. Fire risk was one reason cited by State Farm for ceasing to write new home insurance policies in California. What prompted a similar pullback from Allstate last year was not immediately clear.Andri Tambunan/Special to The Chronicle

 

Allstate has stopped writing new homeowner, condominium and commercial insurance policies in California, the company confirmed to The Chronicle.

The insurer, the fourth largest property and casualty insurance provider in the state in 2021, paused new policies “so we can continue to protect current customers,” spokesperson Brittany Nash wrote in an email to the Chronicle.

The pause began last year but appeared to receive only a passing mention in industry publications. The Chronicle learned of the development this week, after reviewing an Allstate rate increase request to the California Department of Insurance.

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It was not immediately clear what prompted Allstate’s pullback on new policies. But State Farm, the largest provider of property and casualty insurance in California, made waves in late May by announcing it would stop issuing new homeowner policies in the state due to inflation, wildfires and rising reinsurance costs.

That Allstate quietly did the same thing last year signals that insurance woes in the state may be more severe than the public is aware of…

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Article URL : https://www.sfchronicle.com/california/article/insurance-allstate-fires-18130622.php