Business & Tech
Massive Decline In State Farm Policies Projected For CA: Report
State Farm General is seeking to raise rates by at least 30 percent to avoid possible insolvency, according to the San Francisco Chronicle.
CALIFORNIA — State Farm policies could decrease by over a million in California within five years, dropping from 3.1 million in late 2023 to slightly more than 2 million in 2028, the company projected in recent state filings, according to the San Francisco Chronicle.
State Farm has not offered new business or personal property insurance since May 2023 and it started dropping about 72,000 policies over the past summer, the Chronicle reported.
State Farm General, which covers property insurance for the company, is California’s biggest home insurer, underwriting a fifth of the market, according to the Chronicle, but its surplus has been declining since the 2017 wildfires.
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State Farm General is seeking to raise rates by at least 30 percent to avoid possible insolvency after hiking rates 20 percent on average for homeowners statewide earlier in the year, the Chronicle reported, although it anticipates relief when California’s Sustainable Insurance Strategy for reform goes into effect later this year.
Find out what's happening in Across Californiafor free with the latest updates from Patch.
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