Insurance

Another insurer exits California

Oct 18, 2023 1 year ago

Withdrawal has been in motion since last year, says state regulator

By Mika Pangilinan

Oct 18, 2023 Share

CSE Insurance Group has recently announced its decision to phase out coverage in California, becoming the latest carrier to withdraw from the state in recent months.

The Oregon-headquartered insurer reportedly informed agents that it would cease providing quotes for all California policies as of October 9.

According to a copy of the message shared with the North Bay Business Journal, the company would issue letters to policyholders informing them that automobile coverage would not be renewed if it expired on or after November 17. Renewals for all other policies set to expire on January 1 would also be terminated.

The message went on to note that the company would assist brokerages in finding alternative coverage options for policyholders.

CSE is a relatively small player in the state, representing only 0.4% of the homeowners market and 0.2% of the auto market, according to the California Department of Insurance (CDI).

Amid news of CSE’s withdrawal, state officials were quick to emphasize that the move should not be viewed as a sign that recent efforts to retain insurance options are failing.

“CSE informed the department last year of plans to leave the market while providing a soft landing for policyholders with a comparable policy,” CDI spokesperson Michael Soller told the North Bay Business Journal. “We are working on the rate filings that will help transition policyholders with as little disruption as possible.”

Insurance commissioner Ricardo Lara had recently announced plans to enact reforms aimed at alleviating California’s insurance woes, which includes changes to the state-run FAIR Plan and a deal with insurers that would allow more people to transition back to the regular insurance market.

Over the past few months, California has been faced with the departures or pullbacks of major carriers like State Farm, Allstate, Farmers, USAA, and Kemper.

What are your thoughts on this story? Feel free to share your comments below.