California Insurance Market

[NotEnough]

Howdy Everyone,

How is everyone in California's situation like? I'm with an Affinity Captive carrier - not so much restrictions yet. I saw Allstate, State Farm, and now Farmers halted Home insurance.

I want to go independent but looks like the personal auto market is frozen too except for some of the big name carriers.

 

[tikibarrister]

Live footage of the California P&C market:

 

[Markthebroker]

I feel this may be a better description of the Ca market, below. It's bad, really bad. I'm a commercial p&c broker. I am at a reasonbly large agency, so I still have plenty of markets, but the walls are closing in.

 

[ValeRosso]

I feel this may be a better description of the Ca market, below. It's bad, really bad. I'm a commercial p&c broker. I am at a reasonbly large agency, so I still have plenty of markets, but the walls are closing in.

For those who aren’t in P&C, can you explain why the walls are closing in? Is this about the vacancy rates?

 

[Markthebroker]

For those who aren’t in P&C, can you explain why the walls are closing in? Is this about the vacancy rates?

It's a number of different things all at once creating the perfect storm.

Costs to rebuild structures repairs are going up substantially.
Claims from wildfires and the lockdowns are weighing on balance sheets.
Reinsurance costs are going up.

There are a number of things state to state, but those are three of the main bullet points.

 

[ValeRosso]

Thanks for explaining. Now that I remember...Allstate and State Farm no longer insure in CA. Clearly they’re having major issues like you mentioned.

 

[Markthebroker]

Thanks for explaining. Now that I remember...Allstate and State Farm no longer insure in CA. Clearly they’re having major issues like you mentioned.

Yeah, along with NY and FL, California is going through the worst of it.

Ca allows people to shoplift stores, plus we got hit really hard with the wildfires, and were overly zealous with the lockdowns. Furthermore the DOI isn't approving rate increases, so carriers are leaving the state left and right. It's a real shi#show out here.

 

[ValeRosso]

Yeah, along with NY and FL, California is going through the worst of it.

Ca allows people to shoplift stores, plus we got hit really hard with the wildfires, and were overly zealous with the lockdowns. Furthermore the DOI isn't approving rate increases, so carriers are leaving the state left and right. It's a real shi#show out here.

That’s insanity. Ive heard a lot about “decriminalization” in CA of theft under $950, and then I hear about XYC company closing their stores or several stores in certain areas and then same thing with the insurance companies. Really makes you wonder when the breaking point will be and how bad things will get.

 

[Markthebroker]

That’s insanity. Ive heard a lot about “decriminalization” in CA of theft under $950, and then I hear about XYC company closing their stores or several stores in certain areas and then same thing with the insurance companies. Really makes you wonder when the breaking point will be and how bad things will get.

Well, California has for the first time in history had a population decline.

How much worse will it get? Much. It looks like Gavin Newsom will likely be president at some point in the near future.

Buckle your seatbelts.

 

[ValeRosso]

Well, California has for the first time in history had a population decline.

How much worse will it get? Much. It looks like Gavin Newsom will likely be president at some point in the near future.

Buckle your seatbelts.

When I saw Newsom do an interview with Hannity...I knew right then he was prepping for running for President lol