Two additional insurance companies are pulling out of California. Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., will not renew their customers’ home insurance policies, the California Department of Insurance confirmed to KQED in an email. The companies will begin mailing customers nonrenewal notices this summer.
Compared with some high-profile departures, these companies are relatively small, together insuring around 12,000 homeowners. “Given the companies’ minimal market share, we do not expect this to affect the California market as consumers have other options,” Jazmín Ortega, deputy press secretary for the state’s insurance department, wrote to KQED.
However, their departure could worsen the insurance availability crisis at a time when more than 90% of companies within the admitted California insurance market are either not offering new property insurance or have heavy restrictions. Even among the companies listed in the California Department of Insurance’s Home Insurance Finder tool, the majority — about 70% — are not currently offering new plans, according to data gathered by the Susman Insurance Agency and shared with KQED.
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.