Two major insurance companies, Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., have announced their intention to withdraw from the insurance market in California, according to filings from the state’s Department of Insurance.
Withdrawal Plans
Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., both subsidiaries of Tokio Marine Holdings Inc., a Japanese company, revealed their decision to withdraw from the homeowners and personal umbrella insurance markets in the Golden State. Together, these companies provide 12,556 homeowner insurance policies with $11.3 million in premiums. Additionally, Tokio Marine holds 2,732 personal umbrella policies for liability, valued at approximately $400,000.
Impact on Policyholders
Affected policyholders will begin receiving nonrenewal notices starting July 1, with the proposed effective date for these changes set for August 1, 2025. Unfortunately, neither company has disclosed the reasons behind their withdrawal in the documents filed with the state’s Department of Insurance. Despite attempts by KTLA to reach out to Tokio Marine for clarification, no response was received in time for publication.
Growing Trend
Tokio Marine America Insurance Co. and Trans Pacific Insurance Co. are the latest additions to a growing list of insurance companies scaling back their operations in California. This trend makes it increasingly challenging for residents to secure home coverage in the state.
Previous Withdrawals
In March, State Farm General Insurance Company announced plans to non-renew approximately 72,000 policies in California, affecting property insurance and commercial apartment policies. Furthermore, last year, State Farm ceased accepting new insurance applications for all business and personal property in the state. Other companies such as Allstate, Farmer’s Insurance, and The Hartford insurance have also made similar announcements, further impacting the insurance landscape in California.
Conclusion: Impact on California Residents
The withdrawal of Tokio Marine America Insurance Co. and Trans Pacific Insurance Co. from the California insurance market adds to the challenges already faced by residents in obtaining adequate home coverage. With a series of insurance companies scaling back or ceasing operations in the state, it is imperative for Californians to stay informed about their insurance options and take proactive steps to secure their assets and properties.
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