The Insurer Exits And Signs of the Time
Very intriguing that State Farm, a major US insurance company, is exiting a segment of insurance business in California, due to frequent 'catastrophe risks like wildfires, rising construction costs and "a challenging reinsurance market."' Indeed, when markets turn, even with your money, you may not have providers to buy the service. This thing called global warming is real.
New homeowners who live in California will no longer be able to get insurance through State Farm because of catastrophe risks like wildfires, rising construction costs and "a challenging reinsurance market," The Wall Street Journal reports. State Farm said its decision will not impact existing homeowners or its personal auto policies, but it will halt new applications for business policies. In the meantime, the insurer has announced plans to work with the California Department of Insurance and policymakers in order to improve its "financial strength."