California insurance market rattled by withdrawal of major companies

Two insurance industry giants have stepped back from the California marketplace. They say that wildfire risk and soaring construction costs have prompted them to stop writing new policies. State Farm announced last week it would stop accepting applications for all business and personal lines of property and casualty insurance. Allstate announced in November it would pause new homeowners, condo and commercial insurance policies in the state. California’s unsettled market aligns with trends across the country. Insurance companies are boosting rates, limiting coverage or pulling out completely from regions susceptible to wildfires and other natural disasters.