California's insurance commissioner Ricardo Lara spoke out after the state's largest home insurance provider announced that it would discontinue coverage for tens of thousands of policies this summer. State Farm announced on March 20 that it would cut 72,000 home and apartment policies in California because of inflation, regulatory costs and increasing risks from catastrophes.
Insurance companies are not like utility companies," he told KABC. "By law, they don't have to be here, and when we try to overregulate, we'll see what happened after the Northridge earthquake, when the legislature came in and tried to overregulate, and they no longer write earthquake insurance in California." Lara is spearheading an effort to enact the largest insurance reform in more than 30 years in California.
Lara told KABC that his proposed reforms would increase transparency and allow insurance companies to better assess risk, lower rates and expand insurance coverage for Californians. "We bring the risk down in these communities, we keep insurers writing, then you get more insurers writing, you bring down the cost," he said.
Source: News Formal (newsformal.com)
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
State Farm won’t renew 72,000 insurance policies in California, worsening the state's insurance crisisState Farm announced this week it will not renew 72,000 policies in California amid a tight insurance market.
Source: latimes - 🏆 11. / 82 Read more »
State Farm discontinuing 72,000 home insurance policies in California in latest blow to state marketInsurance giant State Farm says it will discontinue coverage for 72,000 houses and apartments in California starting this summer
Source: sdut - 🏆 5. / 95 Read more »
State Farm discontinuing 72,000 home policies in California in latest blow to state insurance marketInsurance giant State Farm says it will discontinue coverage for 72,000 houses and apartments in California starting this summer. The announcement this week comes nine months after the Illinois-based company said it would not issue new home policies in the state.
Source: AP - 🏆 728. / 51 Read more »
State Farm discontinuing 72,000 home policies in California in latest blow to state insurance marketInsurance giant State Farm says it will discontinue coverage for 72,000 houses and apartments in California starting this summer.
Source: ksatnews - 🏆 442. / 53 Read more »
State Farm discontinuing 72,000 home policies in California in latest blow to state insurance marketInsurance giant State Farm says it will discontinue coverage for 72,000 houses and apartments in California starting this summer.
Source: wjxt4 - 🏆 246. / 63 Read more »
State Farm discontinuing 72,000 home policies in California in latest blow to state insurance marketInsurance giant State Farm says it will discontinue coverage for 72,000 houses and apartments in California starting this summer.
Source: 10News - 🏆 732. / 50 Read more »