Several insurers have pulled the plug on their home insurance business in California due to high fire risks.
Tokio Marine America Insurance and Trans Pacific, subsidiaries of Tokio Marine Holdings, recently announced their intention to leave the California market on 1 July 2024.
This plan, which was filed with the California Department of Insurance, would affect 12 556 policies worth 11.3 million USD in premiums.
The two companies are joining a number of other insurers operating in the US State, which have terminated or reduced their coverage of risks linked to forest fires and other natural disasters due to climate change.
State Farm General Insurance announced, in March 2024, its intention to terminate 72 000 home insurance policies in California [4]. A few months earlier, the same company had stopped underwriting new home policies in the State.
Other insurers, including Allstate and Farmers Group, have stopped issuing new policies.