California, September 8, 2025
News Summary
QBE Insurance Corp. plans to withdraw from the U.S. home insurance market, affecting over 37,000 policyholders in California. This follows a pattern of major insurers like State Farm and Allstate also reducing their market presence due to escalating risks like wildfires and rising costs. Builders Reciprocal Insurance Exchange might take on some QBE customers, pending approval. As insurers continue to exit, homeowners face the challenge of finding new coverage, and the state’s insurance landscape is set for further changes.
California Faces Shift in Home Insurance Market as QBE Insurance Corp. Exits
QBE Insurance Corp. has announced plans to exit the U.S. home insurance market, a move that will directly impact over 37,000 policyholders in California. This decision comes as QBE halted the issuance of new homeowners’ policies in the state last month, reflecting a strategic shift to narrow its market focus. As of April 2024, the company provided coverage to approximately 37,774 homes in California.
In response to QBE’s withdrawal, Builders Reciprocal Insurance Exchange, a Texas-based insurer, is poised to take on many of QBE’s customers, pending regulatory approval to operate within California. Currently, QBE represents 0.36% of California’s home insurance market as of 2024.
Reasons Behind Industry Changes
QBE’s decision aligns with a broader trend in the California home insurance market, where prominent providers like State Farm and Allstate have also reduced or ceased issuing new policies. These adjustments are largely attributed to increasing challenges, including soaring wildfire risks, inflation-driven repair costs, and regulatory pricing constraints that have made it difficult for insurers to operate profitably in the state.
Additionally, in April 2024, Tokio Marine Holdings announced its intention to leave the home insurance market, impacting 12,556 homes. They subsequently arranged with Mercury Insurance to transition most of those customers to a new insurer. Crestbrook Insurance Co., a subsidiary of Nationwide, also began its phase-out in June but allowed its customers to transition to Acceptance Casualty Insurance Co., a non-admitted carrier.
Regulatory Guidelines for Insurer Withdrawals
The state’s regulations require insurers to notify policyholders at least 75 days before nonrenewal of coverage. Generally, the complete withdrawal process can take up to a year for an insurer, in conjunction with individual policy renewal dates. Furthermore, in situations where a state of emergency is declared, insurers are temporarily prohibited from nonrenewing affected customers, extending this protection for up to two years.
QBE intends to begin issuing nonrenewal notices once Builders Reciprocal Insurance Exchange receives the necessary approval to write new homeowners’ policies in California. This timing indicates a potential change in the landscape of home insurance in the state as existing customers may find alternative options.
Impact on California Policyholders
The exit of QBE and other major insurers from the California home insurance sector poses several challenges for homeowners. Policyholders currently insured by QBE will need to seek new insurance coverage, and the transition process could create uncertainty as they navigate their options. With an ongoing trend of insurers pulling back from the market, consumers may face increased competition and higher fees when searching for replacements for their home insurance needs.
Conclusion
The withdrawal of QBE Insurance Corp. from the California home insurance market is part of a significant trend affecting homeowners across the state. As policyholders prepare for the transition and seek new coverage options, the insurance landscape in California is likely to continue evolving in response to rising risks and economic pressures.
FAQ
1. What will happen to QBE policyholders in California?
QBE policyholders in California will need to find new homeowners’ insurance coverage as the company ceases to renew policies. Currently, Builders Reciprocal Insurance Exchange may absorb many of these clients if approved to operate in California.
2. How many homes does QBE currently cover in California?
As of April 2024, QBE covers approximately 37,774 homes in California.
3. Why are major insurers leaving the California home insurance market?
Insurers are leaving due to a combination of rising wildfire risks, increased repair costs due to inflation, and regulatory constraints limiting pricing options in California.
4. How long will it take for QBE to exit the California market?
The complete exit process typically takes about a year, aligning with individual policy renewal dates and requiring a minimum 75 days’ notice before nonrenewal.
5. Are there protections for policyholders during emergencies?
Yes, during declared state of emergencies, insurers cannot nonrenew policies for affected customers, which can extend this protection for up to two years.
Key Features of QBE’s Withdrawal from California
| Feature | Details |
|---|---|
| Impact on Policyholders | Over 37,000 customers affected |
| Market Position | QBE accounts for 0.36% of the home insurance market in California |
| Customer Transfer | Builders Reciprocal Insurance Exchange may take on QBE customers |
| Nonrenewal Notice Time | Policyholders given 75 days’ notice before nonrenewal |
| Exit Timeline | Typically up to one year aligns with policy renewals |
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle: California Home Insurance Tool
- Insurance Business: QBE to Exit US Home Insurance Market
- San Francisco Chronicle: Home Insurance Issues with QBE
- State Farm: Understanding Home Insurance Issues in California
- Newsweek: California Ruling on Home Insurance Rules
- Wikipedia: Home Insurance
- Google Search: California Home Insurance Crisis
- Google Scholar: Home Insurance California
- Encyclopedia Britannica: Home Insurance
- Google News: California Insurance Market
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles 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 Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
