State Farm

California Insurance Commissioner Ricardo Lara was speaking about climate change's impact on insurance pricing at the Bermuda Climate Summit.

CPI figures show loss costs are cooling, and if rate levels cannot reach adequacy we are likely to see more pausing from the industry beyond State Farm, Allstate and Nationwide.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

Other carriers reportedly pulling back from writing business in California recently include Mercury General and Safeco, while Oregon Mutual is said to have exited the California market altogether.

Continuing rises in loss frequency and severity plus a difficult regulatory framework make the situation in California highly challenging for carriers.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

Need to Know

The company wrote the most California homeowners multi-peril insurance, at $2.56bn, and fire lines and home multi-peril insurance, at $2.66bn, in 2022, according to AM Best data.

High-impact rate filings in California have driven increases nationwide.

The new 2022 stat data shows personal lines premium has grown year-over-year, but the loss ratios have been hit hard by catastrophes and loss cost inflation.

Rate action for personal auto insurers has been increasing in 2023 to balance rising loss cost trends

Personal lines insurers see a vastly different outlook in 2022 than 2021 and their reserve development reflects this.