State Farm announced May 26 that it will stop accepting new applications for personal and business property insurance in California, citing “rapidly growing catastrophe exposure” due to fires such as this 2020 blaze in Pope Valley. Critics say it is part of a strategy to force regulators to approve far higher rates. The New York TimesLawson-Remer is vice chair of the San Diego County Board of Supervisors. She represents District 3 and lives in Encinitas.
People trust that their insurers are assessing risks and planning accordingly to provide security when it is needed most. To now declare that the risk is too high, effectively abandoning policyholders, is nothing short of betrayal. This is not just a failure of corporate responsibility, it is a direct affront to the very people who have kept these companies profitable.
Despite these efforts, some consumer watchdog groups argue that insurers are using policy cancellations as leverage to secure more favorable regulations. This manipulation underscores the need for immediate and decisive action from both state officials and community leaders.