https://www.wsj.com/articles/state-farm ... a-5748c771State Farm is stopping the sale of new home-insurance policies in California effective Saturday, because of wildfire risk and rapid inflation in construction costs. The move by one of California’s biggest insurers is a blow to the state’s efforts for years to maintain a vibrant market for homeowners in the wildfire-prone state. Nationally, inflation has been a serious problem for home and car insurers since last year, and many have posted underwriting losses as they continue to seek regulatory approvals for rate increases that they say they need for catching up with the surging costs.
State Farm is the nation’s biggest car and home insurer by premium volume. It said it “made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.” It posted the statement on its website and referred questions to trade groups. The insurer’s move doesn’t affect existing home-insurance policyholders, whose policies will remain in effect, according to the statement and a representative of the state Department of Insurance. The insurer said it would also quit accepting new applications for business policies, but it would continue selling new personal auto policies.
According to the CA Insurance Commissioner, State Farm has the largest share of the property and casualty insurance market in CA.
https://www.insurance.ca.gov/01-consume ... evised.pdf