Allstate Insurance may soon start offering new homeowners policies in California again, provided the state Department of Insurance allows the use of catastrophic modeling when requesting rate increases.
The news comes after Tokio Marine and Trans Pacific brought the number of insurers to announce their exit from the beleaguered state, to 10, just last week.
Allstate halted new policies in the state two years ago due to concerns over wildfire risks, the cost of rebuilding homes, and the increasing price of reinsurance.
The company has continued renewing existing policies during this time, but the company stated it would consider offering new policies if home insurance rates can accurately reflect the cost of providing protection to consumers. The insurer said the importance of using advanced wildfire modeling and considering reinsurance costs.
The statement read: “Once home insurance rates fully reflect the cost of providing protection to consumers, we’ll be able to offer home insurance policies to more Californians with timely rate approvals, the use of our advanced wildfire modeling and reinsurance costs.”
Today, the Little Hoover Commission held a public hearing in Sacramento to discuss the state’s home insurance market, featuring input from the governor’s Office of Emergency Services and California’s FAIR plan, among others.
Additionally, a town hall meeting was set for Hillsborough, where state Senator Josh Becker, experts from the Department of Insurance, and united policyholders were scheduled to discuss the ongoing insurance crisis in California.
