The Hartford newest to tug again from California owners insurance coverage

The Hartford has turn into the newest insurer to tug again from owners insurance coverage in California.

The Hartford will not provide new private property insurance coverage protection in California from February 1, a spokesperson confirmed to Insurance Business.

“The homeowners’ insurance environment in California has unique challenges that have required us to reconsider the viability of writing new homeowners’ business in the state,” The Hartford spokesperson stated. “Based on these challenges and our evaluation of the tendencies, we’ve determined to cease providing new owners insurance policies beginning Feb. 1, 2024.

The owners pull again doesn’t have an effect on The Hartford’s different current merchandise in California, together with enterprise insurance coverage and private auto insurance coverage.

The Hartford will “continue to renew existing homeowners’ business consistent with our underwriting guidelines,” the spokesperson stated.

The insurer has a owners insurance coverage market share of lower than 1% within the state, in line with S&P Capital IQ information.

The Hartford is the newest insurer to push pause on California’s hassle owners insurance coverage market

The Hartford’s new owners insurance coverage enterprise pause, first reported by The San Francisco Standard, is the newest in a tide of insurer pullbacks from the wildfire-prone state.

Other insurers to have introduced withdrawals embody Kemper and CSE Insurance Group.

California Insurance Commissioner Ricardo Lara has launched reforms aimed toward stemming an insurer exodus

California’s Insurance Commissioner Ricardo Lara has sought to sort out the owners insurer exodus with the Sustainability Insurance Strategy, hailed as the biggest insurance coverage reform initiative because the introduction of Proposition 103 in 1988.

The technique was welcomed by the American Property & Casualty Insurance Association (APCIA) as together with the “first steps of many” wanted to deal with California’s spiraling insurance coverage disaster, although a California dealer affiliation chief has deemed them “long on hope and short on specifics”.

“We do not enter into this decision lightly, and we appreciate and support efforts like Commissioner Lara’s Sustainability Insurance Strategy to help bring stability to the market,” The Hartford spokesperson instructed Insurance Business.

The insurer spokesperson stated will probably be “watching those efforts closely”.

Got one thing to say about California insurance coverage exits and The Hartford’s pull again? Sound off within the feedback under.