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Allstate considers underwriting in California, under one condition…

CENTRAL COAST, Calif. -(KION-TV)- Allstate Insurance announced on Thursday that it's considering underwriting in the state of California once more.

This all hinges on the State's Department of Insurance to offer "catastrophic modeling," which is an automated risk management tool that helps insurers, businesses and the government better assess potential catastrophic losses, both man-made and/or natural.

Gabriel Sanchez with the California Department of Insurance informed KION what this means for homeowners and business owners in the state:

“California’s insurance crisis is decades in the making, and we are staying on track to implement all changes this year so insurance companies [can] start writing more policies in all areas," Sanchez said. "We are balancing the urgent needs of homeowners with a need for transparency and we will review all public comments as we move forward with bringing companies back to California."

Last year, California Insurance Commissioner Ricardo Lara unveiled the state's Sustainable Insurance Strategy, a multi-tiered plan that's currently rolling out in face of California's increasingly volatile environment changes.

"California is battling a 21st-century insurance crisis with 20th-century rules," said Sanchez. "With climate change affecting every aspect of our lives, just relying on what we did in the past won’t improve insurance choices for homeowners and businesses."

KION reached out to Allstate insurance for a statement about their potential return to the golden state. Teny Josephbek responded that the company is currently working with the Department of Insurance to try and strike a compromise for improved insurance throughout the state.

"Once home insurance rates fully reflect the cost of providing protection to consumers, we’ll be able to offer home insurance policies to more Californians with timely rate approvals [with] the use of our advanced wildfire modeling and reinsurance costs."- Teny Josephbek who is an Allstate spokesperson

Josephbek also said that Allstate continues to offer auto insurance policies to Californians.

Allstate stopped underwriting new policies for business and homeowners two years ago but continued to renew existing policies.

“Our goal is to safeguard the integrity of the insurance market to benefit consumers," said Sanchez. "Not kowtow to the whims of entrenched interests that have secretly benefited from a dysfunctional marketplace for decades."

Article Topic Follows: California News
California insurance
monterey county
santa cruz
santa cruz county

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Jeanette Bent

I’ve been an international professional writer and performer for over 25 years. With a background in journalism, creative writing, dance and aerial, I find the intersection between all of these skills lands itself somewhere under the term “storytelling.”


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