State Farm and Allstate have pulled back from California’s home insurance market, saying that increasing wildfire risk and soaring construction costs mean they’ll no longer write new policies in the nation’s most populous state. Insurers have retreated from regions that have been hit repeatedly by severe weather, even after raising premiums for years to cover those losses. The increasing frequency of extreme weather from hurricanes and wildfires to high winds and hail, are leading to disruptions in the insurance industry with some companies pulling out of states that are getting hit hard, such as Florida and California.Ĭatastrophe losses at Travelers jumped to $1.48 billion for the three-month period ending on June 30, up from $746 million in the same period last year.

Travelers, considered a bellwether for the insurance industry due to its size, said catastrophe losses doubled in its most recent quarter and the company swung to a loss as severe wind and hailstorms in a number of regions led to rising coverage claims.

Golden v. state farm insurance