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California Insurance Carriers Update -Allstate No New HO Policies


California Insurance Carriers Update Allstate Says No New HO Policies

Two California insurance carriers are now not writing new policies in certain lines of insurance.

As I predicted in last week’s article on State Farm leaving California, another major carrier has not stopped accepting new insurance applications.   Yes, as seen in the nationwide worker’s comp insurance crisis of the 1990s, California insurance carriers have no obligation (except for Assigned Risk) to remain writing new business in states where the risk outweighs the premium.

pic Winchester Mystery House California Insurance Carriers
Public Use License – Ben Franske

Financial Excerpt

Why would Allstate cease writing Homeowner’s policies – check out its shareholder’s statement from December 2022.

  • Net loss applicable to common shareholders was $694 million in the third quarter of 2022 compared to the income of
    $508 million in the prior year’s quarter, primarily due to an underwriting loss and equity valuation declines.
  • Adjusted net loss* was $420 million, or $1.56 per diluted share, compared to adjusted net income* of $217 million
    generated in the prior-year quarter. The decline reflects increased claims severity, higher unfavorable prior year
    reserve reestimates, and lower net investment income.

The $1 billion swing from a $694 million income to a $508 million loss in just one year shows that changes can occur very rapidly with a California insurance carrier or underwriting in any state.

That makes two MAJOR California insurance carriers that have ceased writing new policies in within a few weeks’ time.  According to USA Today, Allstate ceased writing new homeowners’ policies last year.  Wow, that was a quiet move.

Our HQ state – North Carolina saw large insurance carriers leaving the state in droves due to an NC Supreme Court decision that gave basically all worker’s compensation files lifetime medical benefits – later fixed with the passing of a bill that corrected the decision.

Bottom Line – California Insurance Carriers

Yes, I am mixing California insurance carriers with other states and lines of insurance – homeowners vs. workers comp.  The main takeaway is that an insurance carrier writing coverage in any state can cease at any time.




James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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