Insurance giant suspends sales of new home insurance due to wildfires in California | California
US insurance giant State Farm Biggest Auto and home insurers by total premium will stop selling new home insurance in California, citing wildfire risk and rising construction costs.
Starting Saturday, the company will no longer accept claims for property and casualty insurance for businesses and individuals. The company will continue to accept auto insurance applicants.
“State Farm General Insurance Company made this decision because of historical increases in construction costs that have outpaced inflation, rapidly increasing catastrophe risk, and a difficult reinsurance market,” the company said. rice field. in the statement.
“We take our risk management responsibilities seriously. California We thank the Department of Insurance (CDI) for their efforts to mitigate losses from wildfires. We are committed to working constructively with the CDI and policymakers to help build California’s market capacity. But to improve the company’s financial strength, these steps must be taken now. ”
Existing customers insured by State Farm will not be affected by this decision.
In response to State Farm’s statement, a spokesperson for the California Department of Insurance said: told Fox Business News What we are doing to protect homeowners.
“The factors driving State Farm’s decisions are beyond our control, including climate change, reinsurance costs affecting the insurance industry as a whole, and global inflation,” the spokesperson said.
State Farm is not the only insurer to suspend wildfire coverage. Multinational insurer American International Group last year told thousands of California homeowners that they would not renew their policies. wall street journal report.
State Farm’s latest statement comes after last year’s wildfires in California. Wildfires are not uncommon in the western United States, but the climate crisis is exacerbating the problem. especially in California.
california saw 7,490 wildfires in 2022, will increase year-over-year, according to California government data. Wildfires in northern California have destroyed 100 homes and other buildings. reported by NBC News.
The severity of wildfires has destroyed homes, injured and killed people, deteriorating air qualitymillions are exposed to smoke and ash.
The climate crisis is making California’s climate warmer and drier, increasing the frequency and intensity of wildfires in the state. A recent study found that nearly 40% of the forest area burned in the western United States and parts of Canada between 1986 and 2021 could be attributed to fossil fuels. The Washington Post reported.
In addition, California has record wildfire experience in the last 6 years. The state was home to eight of the deadliest fires in U.S. history, and three of the five deadliest fires.
Summarize this content to 100 words US insurance giant State Farm Biggest Auto and home insurers by total premium will stop selling new home insurance in California, citing wildfire risk and rising construction costs.Starting Saturday, the company will no longer accept claims for property and casualty insurance for businesses and individuals. The company will continue to accept auto insurance applicants.”State Farm General Insurance Company made this decision because of historical increases in construction costs that have outpaced inflation, rapidly increasing catastrophe risk, and a difficult reinsurance market,” the company said. rice field. in the statement.“We take our risk management responsibilities seriously. California We thank the Department of Insurance (CDI) for their efforts to mitigate losses from wildfires. We are committed to working constructively with the CDI and policymakers to help build California’s market capacity. But to improve the company’s financial strength, these steps must be taken now. ”Existing customers insured by State Farm will not be affected by this decision.In response to State Farm’s statement, a spokesperson for the California Department of Insurance said: told Fox Business News What we are doing to protect homeowners.”The factors driving State Farm’s decisions are beyond our control, including climate change, reinsurance costs affecting the insurance industry as a whole, and global inflation,” the spokesperson said.State Farm is not the only insurer to suspend wildfire coverage. Multinational insurer American International Group last year told thousands of California homeowners that they would not renew their policies. wall street journal report.State Farm’s latest statement comes after last year’s wildfires in California. Wildfires are not uncommon in the western United States, but the climate crisis is exacerbating the problem. especially in California.california saw 7,490 wildfires in 2022, will increase year-over-year, according to California government data. Wildfires in northern California have destroyed 100 homes and other buildings. reported by NBC News.The severity of wildfires has destroyed homes, injured and killed people, deteriorating air qualitymillions are exposed to smoke and ash.The climate crisis is making California’s climate warmer and drier, increasing the frequency and intensity of wildfires in the state. A recent study found that nearly 40% of the forest area burned in the western United States and parts of Canada between 1986 and 2021 could be attributed to fossil fuels. The Washington Post reported.In addition, California has record wildfire experience in the last 6 years. The state was home to eight of the deadliest fires in U.S. history, and three of the five deadliest fires.
https://www.theguardian.com/us-news/2023/may/27/state-farm-home-insurance-california-wildfires Insurance giant suspends sales of new home insurance due to wildfires in California | California