State Farm to Drop 72,000 Policies in California Amid Insurance Crisis

The insurer's decision highlights the deepening challenges in the state's insurance market, with reforms proposed to stabilize the situation.

State Farm General Insurance announced it will not renew 72,000 property insurance policies in California, affecting both residential and commercial properties.
The decision is part of a broader trend of insurers scaling back in California due to high inflation, natural disaster risks, and regulatory challenges.
The California FAIR Plan, a last-resort insurance option, is under financial strain as more Californians turn to it amid the market turmoil.
Insurance Commissioner Ricardo Lara has proposed reforms to address the crisis, including allowing insurers to raise rates to cover reinsurance costs.
Experts warn that without rapid regulatory changes, the insurance market instability could worsen, putting consumers at risk.