California, September 8, 2025
News Summary
QBE Insurance Corp. plans to exit the U.S. home insurance market, affecting over 37,000 policyholders in California. Ceasing new policies and initiating nonrenewal notices, QBE’s retreat reflects industry trends driven by wildfire risks and repair cost inflation. Builders Reciprocal Insurance Exchange aims to take on QBE’s customers, pending regulatory approval. This strategic retreat highlights challenges within California’s home insurance landscape, prompting insurers to reassess their market positions amidst evolving conditions.
California
QBE Insurance Corp., an international insurer, is set to exit the U.S. home insurance market, which will directly impact more than 37,000 policyholders in California. This decision comes as the company aims to narrow its market focus and manage its financial performance amidst evolving conditions in the insurance industry.
QBE has ceased writing new homeowners’ policies in California as of last month, and reports indicate that they were providing coverage for 37,774 homes within the state as of April 2024. This withdrawal process begins with nonrenewal notices to existing policyholders following regulatory approvals.
In an effort to alleviate the impact of this exit, Builders Reciprocal Insurance Exchange, a Texas-based insurer, is positioned to take on most of QBE’s customers, contingent upon receiving regulatory approval to operate in California. The management’s strategy reflects a broader trend in the insurance market where several major providers such as State Farm and Allstate have either reduced or halted the writing of new policies in California. This shift has largely resulted from escalating wildfire risks, increasing inflation-driven repair costs, and regulatory pricing constraints impacting how insurers function in the state.
Further compounding the issue, other insurers like Tokio Marine Holdings recently announced intentions to exit the home insurance market, impacting over 12,500 homes. This was remedied partially when they arranged to transfer most of their affected customers to Mercury Insurance. Another instance includes Crestbrook Insurance Co., a subsidiary of Nationwide, which began its exit in June while offering transitions to Acceptance Casualty Insurance Co., a non-admitted insurance carrier.
The specific timeline for QBE’s withdrawal from the California market is governed by state regulations, which typically require insurers to provide policyholders with 75 days’ notice before nonrenewal takes effect. Insurers generally must work within a timeline that aligns with annual policy renewal dates, making the full exit process take approximately one year. Moreover, if a state of emergency is declared, insurance companies are prohibited from nonrenewing affected customers for up to two years.
As part of its strategy to streamline operations, QBE plans to initiate nonrenewal notices once Builders Reciprocal Insurance Exchange secures regulatory approval to begin writing homeowners’ policies in California. This will ensure that the transition for policyholders is as smooth as possible amid these developments in the U.S. home insurance landscape.
Context and Background
Over the past few years, California’s home insurance market has undergone significant changes driven by various factors including climate risks linked to wildfires and the increasing costs associated with repair and rebuilding efforts. These realities have prompted several key players in the market to reassess their operations and exposure in the region. Understanding these changes is crucial for policyholders and potential customers as they navigate their insurance options.
FAQ Section
What does QBE Insurance Corp.’s exit from the U.S. home insurance market entail?
QBE Insurance Corp. will stop writing new homeowners’ policies and will provide nonrenewal notices to over 37,000 policyholders in California as part of its exit from the U.S. home insurance market.
How many policyholders does QBE Insurance currently have in California?
As of April 2024, QBE Insurance Corp. provided coverage to approximately 37,774 homes in California.
What options do affected policyholders have?
Affected policyholders may transition to Builders Reciprocal Insurance Exchange if they receive regulatory approval to operate in California, which could absorb many QBE customers and provide necessary coverage.
Why are insurers exiting the California home insurance market?
Insurers are exiting the market primarily due to increasing wildfire risks, rising inflation-driven repair costs, and regulatory pricing constraints that make it difficult to maintain profitability in California.
Key Features Chart
| Feature | Details |
|---|---|
| Company Exiting | QBE Insurance Corp. |
| Impact | Over 37,000 policyholders in California |
| Current Coverage | 37,774 homes |
| Future Insurer | Builders Reciprocal Insurance Exchange |
| Market Share | 0.36% of California’s home insurance market in 2024 |
| Notices Period | 75 days before nonrenewal |
| Exit Duration | Typically one year |
| State of Emergency Regulation | Two-year moratorium on nonrenewals |
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle: QBE to Exit California Home Insurance
- State Farm: Understanding the Issues in California
- Insurance Business: QBE to Exit U.S. Home Insurance Market
- Newsweek: California Ruling Could Change Home Insurance Rules
- San Francisco Chronicle: California Home Insurance Tool – State Farm
- Wikipedia: Home Insurance
- Google Search: California home insurance
- Google Scholar: California home insurance market
- Encyclopedia Britannica: Home Insurance
- Google News: California home insurance issues
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
