California Faces Escalating Home Insurance Crisis as More Companies Exit

Two more insurers, Tokio Marine and Trans Pacific, announce departure from California's market, citing unsustainable costs and outdated technology.

Tokio Marine America Insurance Co. and Trans Pacific Insurance Co. will not renew over 12,500 homeowner policies starting July 1 due to high wildfire risks and rising operational costs.
State Farm and other major insurers have also reduced their market presence in California, impacting tens of thousands of policyholders.
Insurance Commissioner Ricardo Lara is pushing for regulatory changes to include future climate risks and reinsurance costs in premiums to attract insurers back.
Consumer advocates express concerns over potential transparency issues and the burden of increased premiums on homeowners.
The ongoing exodus of insurers from California highlights the broader impact of climate change and escalating costs on the property insurance industry.