![]() "Earthquake insurers currently build their earthquake rates using these very same models, so it's not like these models are scary black boxes," Frazier said. One such change is using forward-looking models to project losses instead of the current rule that requires insurers to take the average of actual losses for the previous 20 years to determine their rate requests. State regulations governing rate increases need several changes, Rex Frazier, president of the Personal Insurance Federation of California, said in an email to S&P Global Market Intelligence. Both Chubb and Allstate said their decisions were driven by the inability to achieve sufficient rate increases to cover wildfire losses. announced that month that it would not write any new homeowners business in the state. reduced its exposure to the California market in November 2021, and The Allstate Corp. exited the market in January 2022, while Chubb Ltd. That decision by State Farm, which had the largest share of the California homeowners market in 2022 at 20.6%, made it the fourth major insurer to either restrict or cancel homeowners coverage in the state's admitted market since November 2021.Īmerican International Group Inc. said in a news release that, as of May 27, it would no longer honor new applications for property and casualty insurance in either its business lines or its personal lines, except for auto coverage, in the Golden State. Source: Getty Images.Ī decision by California's largest homeowners insurer to stop writing new property and casualty policies has hastened calls to revise the state insurance regulator's rate approval mechanism. Fire blazes through the Long Meadow Grove of giant sequoia trees near The Trail of 100 Giants in Sequoia National Forest on Sept.
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