State Farm's Decision: Non-Renewal of 72,000 California Policies

1 min read
Source: KTLA Los Angeles
State Farm's Decision: Non-Renewal of 72,000 California Policies
Photo: KTLA Los Angeles
TL;DR

State Farm General Insurance Company plans to non-renew 72,000 policies in California, including 30,000 property insurance and 42,000 commercial apartment policies, citing the need for long-term sustainability due to financial challenges such as inflation and reinsurance costs. The company's decision to withdraw from the commercial apartment market in California and non-renew certain property insurance policies is a response to the state's insurance regulations and its efforts to establish an environment where insurance rates better align with risk. This move follows State Farm's previous decision to stop accepting new insurance applications for all business and personal property in California, with other companies like Allstate also making similar announcements.

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