The wildfires in California have led to an unprecedented insurance crisis. (iStock )
The California wildfires have brought widespread disaster to communities in Southern California. It’s also contributed to a serious insurance crisis happening in the state. Many insurers have pulled out of the state or have paused coverage.
AIG left the state in 2022, while Chubb and Allstate limited their coverage options in the last few years. An even larger blow, State Farm pulled their 72,000 policies in 2024.
“It often takes [admitted carriers] a long time to adjust, so their only options are to try to turn things around or gradually pull out, which is where the E&S market steps in,” Christopher Hatt, managing director of Lloyd’s facilities and US personal lines at Novatae Risk Group said.
California’s FAIR Plan, a last-resort insurer, faces uncertainty as well, adding to the…
