Update on the Property & Casualty Insurance Market

August 10, 2023

We appreciate your business with our family agency and wanted to update you on the current Property & Casualty Insurance Market. 2023 has been a challenging year with majority of insurance carriers struggling to stay profitable in California and therefore pausing or cancelling insurance policies. This is a complicated issue that comes down to the insurance companies being able to stay profitable. Since 2017, the wildfires wiped out billions of dollars and decades of profits. Claims are rising in frequency and severity and theres been a surge in labor and materials post pandemic. Meanwhile the insurance companies have had issues getting rate approval through the CA Department of Insurance to offset the losses in a timely manner. Insurance companies have not been able to increase rates at a pace that adequately matches the increasing exposure in other words, they are losing money on writing business in California. What can you do about it?

  • Pay your bill ahead of time, do not let your policy lapse for any reason. Most carriers have made big changes to grace periods.

  • Read your insurance mail I know, in what spare time? This is not the time to put it off! Your company may be sending you important compliance requests. If they dont hear back from you, they can cancel your policy per the terms of the policy.

  • If you are unable to find insurance call us and if we cant find a solution for you then contact your local legislator and ask them what they are doing to help in this crisis.