Daily P&C Insurance News

The California Department of Insurance has approved an average 8.2% rate hike for personal auto policies from State Farm, Allstate, and GEICO, citing unprecedented repair costs and litigation expenses.
Agents report this marks the third consecutive year of double-digit increases as carriers struggle with California’s volatile market conditions.

Early estimates show the LA County wildfires have generated $2.4 billion in insured losses, primarily affecting homeowners and commercial property portfolios.
Reinsurers are activating catastrophe bonds while primary carriers brace for significant reserve impacts in Q2 earnings.

Farmers announced it will non-renew 150,000 homeowner policies across high-risk California counties, accelerating the market dislocation.
Independent agents report E&S carriers filling the gap at 40-60% premium increases as admitted markets continue to contract.

AB-1247 mandates insurers disclose AI algorithms used in underwriting and pricing decisions, with $500K fines for non-compliance.
The measure targets perceived discrimination in auto and property rating but carriers warn it could drive more capacity from the state.

Lemonade introduced instant-issue parametric wildfire coverage for California small businesses, paying claims when fire perimeters reach within 5 miles of insured locations.
The product bypasses traditional adjusters using satellite imagery and aims to capture market share from exiting carriers.