Insurance company State Farm is halting new property insurance policies in the state of California as the firm battles inflationary pressures and increasing exposure to wildfire risks.
In California, State Farm will “cease accepting new applications including all business and personal lines property and casualty insurance, effective May 27, 2023,” the firm said in a May 26 statement. The company “made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.” State Farm agents will continue to serve existing customers for these insurance products. The decision also does not impact personal auto insurance.
State Farm isn’t the first insurer to cut back on their homeowners business in California. Last year, the American International Group notified its high-net-worth clients that the company would stop renewing their policies….