“State Farm is unusual in that it announces such underwriting actions. That Allstate quietly did the same thing last year signals that insurance woes in the state may be more severe than the public is aware of. State Farm, the largest provider of property and casualty insurance in California, made waves in late May by announcing it would stop issuing new homeowner policies in the state due to inflation, wildfires and rising reinsurance costs. The Chronicle learned of the development this week, after reviewing an Allstate rate increase request to the California Department of Insurance. The pause began last year but appeared to receive only a passing mention in industry publications. The cost of rebuilding has increased with inflation, but Allstate can't adjust prices quickly due to state regulation, Nash wrote. "The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes, and higher reinsurance premiums," Nash wrote in a follow-up email on Friday. The insurer, the fourth largest property and casualty insurance provider in the state in 2021, paused new policies “so we can continue to protect current customers,” spokesperson Brittany Nash wrote in a Thursday email to The Chronicle.
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