By admin 
After freezing new home insurance policies in California in 2022 and 2023, Allstate and State Farm are seeking a limited return to writing new residential policies.
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In separate filings, the companies proposed reopening to new business in the state, state Insurance Commissioner Ricardo Lara’s office said in a Wednesday news release.
Allstate proposed issuing at least 2,064 new home insurance policies in California if it receives approval for an overall 1.4% rate hike, Insurance Business reported.
State Farm said it will consider issuing policies to homes that meet the strictest Insurance Institute for Business & Home Safety standards for wildfire safety, Lara’s office said.
Both proposals are under review and have not been approved.
“Options for Californians are increasing,” Lara said in the release. “A filing is a starting point, not a finish line.”
Lara said decisions by Allstate in 2022 and State Farm in 2023 to cease writing new home insurance policies were considered signs of a market in crisis. He called the new filings an “equally clear signal in the other direction.”
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But Jamie Court, president of Consumer Watchdog, said the proposed changes would result in very few new policies being written.
“It’s not going to be a substantive change in the market,” Court said. “It’s still a crisis situation.”
He said State Farm did not commit to a number, while Allstate would offer 2,064 policies in return for a $10 million rate hike.
Lara’s office called the filings a sign that California’s insurance is “turning a corner.”
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