Posted 3/23/2024, 10:00:42 AM
State Farm Drops 72K Policies in California, Intensifying Insurance Crisis
- State Farm not renewing 72,000 home and commercial insurance policies in California, worsening ongoing insurance crisis
- Companies citing high inflation, catastrophe exposure, reinsurance costs as reasons for scaling back policies
- Thousands turning to state-backed FAIR Plan as insurer of last resort, putting financial strain on program
- Insurance Commissioner proposed new rules to raise rates but require insurers to cover more homes to slow premium hikes
- State Farm cancellations may pressure Department of Insurance to expedite reforms to address crisis
