Two more insurance companies, Tokio Marine America and TransPacific, have announced plans to withdraw from California's homeowners and personal umbrella insurance markets. According to FOX5 San Diego, the move will impact more than 12,500 policyholders, who will begin receiving non-renewal notices starting July 1st. The proposed effective date for these filings will take place on August 1, 2025.
Both entities are subsidiaries of Tokio Marine Holdings Inc., a Japanese company. Together, the two companies provide 12,556 homeowner insurance policies with $11.3 million in premiums. Tokio Marine also has 2,732 personal umbrella policies for liability worth about $400,000.
The companies did not disclose the reason behind their withdrawal. However, Tokio Marine America issued a statement indicating that given the small segment of personal lines business they write and escalating costs, they cannot sustainably support personal lines coverages and do not plan to return. They remain committed to commercial lines in California and across the country.
This decision follows a growing trend of insurance companies limiting or completely withdrawing their business in California. In March, State Farm General Insurance Company announced plans to non-renew about 72,000 policies in California, impacting property insurance and commercial apartment policies. Last year, the company also announced it would stop accepting new insurance applications for all business and personal property in California. Other companies like Allstate, Farmerās Insurance, and The Hartford insurance have announced similar moves.
California Insurance Commissioner Ricardo Lara has proposed a slate of reforms known as the Sustainable Insurance Strategy, designed to attract insurers back to the state.
These reforms are set to take effect at the end of the year.