Daily P&C Insurance Agent News
- November 27, 2025
- Tony Veteto
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P&C Insurance Daily
Industry News for Insurance Professionals
Today’s Top Stories
Farmers Insurance Eliminates Cap on Homeowners Policies in California
November 24, 2025
Farmers Insurance has removed the cap on new homeowners insurance policies it offers in California, eliminating the previous 9,500 monthly policy limit and planning to market directly to approximately 300,000 consumers in distressed areas beginning in early 2026. The company has also filed a new rating plan requesting a 6.99% average statewide rate increase and offering an improved 22% Home/Auto bundle discount, up from 15%.
Why California’s Homeowners Insurance Market Collapsed
May 12, 2025
California’s homeowners insurance crisis stems from devastating wildfires combined with an inefficient regulatory framework that has suppressed rates and limited catastrophe modeling, causing seven of the twelve largest insurers to restrict new policies since 2022. The state’s FAIR Plan is overwhelmed with approximately 4% of the residential market, and insurance companies face potential billions in additional liability if it becomes insolvent.
Commissioner Lara Expands FAIR Plan Coverage and Sustainable Insurance Strategy
2025
Insurance Commissioner Ricardo Lara continues to expand FAIR Plan coverage for high-value commercial properties and homeowners associations while implementing reforms to restore the FAIR Plan to its original purpose as a temporary solution rather than a permanent fixture. The Sustainable Insurance Strategy includes requiring insurance companies to write policies in wildfire-distressed areas if they want to use forward-looking catastrophe models or reinsurance costs in their rate calculations.
California Wildfires Generated $50 Billion in Q1 2025 Claims
Q3 2025
Eleven California wildfires generated $50 billion in insurance claims during the first quarter of 2025, adding approximately three percentage points to the industry’s net combined ratio and depleting nearly half of the industry’s annual catastrophe budget. Insurers are adapting strategies by becoming more selective with risk appetites in high-risk areas and enhancing underwriting measures to mitigate potential losses.
US Property/Casualty Industry Reports $1.1 Billion Underwriting Loss in Q1 2025
Q1 2025
The US property and casualty industry recorded a $1.1 billion net underwriting loss in the first quarter of 2025, a significant decline from the $9.4 billion gain reported in the same period the previous year, primarily driven by catastrophic wildfire losses in California. The industry is forecasting 5.5% direct premium written growth for 2025 and 4% growth for 2026 as the market continues to stabilize.
Stay informed with the latest developments impacting insurance professionals and the P&C industry.
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