California, September 8, 2025
News Summary
QBE Insurance Corp. is exiting the U.S. home insurance market, impacting over 37,000 policyholders in California. The decision comes as part of a strategy to address rising risks from wildfires and inflation. While QBE stops renewing policies, it is working with Builders Reciprocal Insurance Exchange to transition existing customers, pending regulatory approval. This withdrawal reflects a trend among major insurers leaving the state amid challenging market conditions.
California is set to see significant changes in its home insurance landscape as QBE Insurance Corp. announces its exit from the U.S. home insurance market. This move will affect more than 37,000 policyholders in the state. QBE, which ceased writing new homeowners’ policies in California last month, currently covers 37,774 homes, accounting for approximately 0.36% of California’s home insurance market.
The decision to withdraw is part of QBE’s strategy to narrow its market focus amidst challenging conditions in the industry. Other major insurers, including State Farm and Allstate, have also reduced their presence in California, citing rising risks from wildfires, inflation-driven repair costs, and regulatory pricing constraints. The wave of withdrawals signifies concerns over the sustainability of home insurance underwriting in California.
In an effort to retain as many customers as possible, QBE is aligned with Builders Reciprocal Insurance Exchange, a Texas-based insurer that may take on most of QBE’s existing customers. However, this transition is contingent on Builders Reciprocal obtaining the necessary regulatory approval to operate in California.
As per California’s insurance regulations, firms withdrawing from the market must provide their customers with a 75-day notice prior to nonrenewal. The complete process of withdrawal typically spans up to a year, aligning with policy renewal dates. Notably, in scenarios where a state of emergency is declared, insurers are prevented from nonrenewing affected customers for a period of up to two years.
This news follows a trend in the industry; in April 2024, subsidiaries of Tokio Marine Holdings also planned their exit from the home insurance market, impacting 12,556 homes, before establishing an arrangement with Mercury Insurance to transition most of those customers. Crestbrook Insurance Co., a subsidiary of Nationwide, began its exit in June and has offered a transition pathway to Acceptance Casualty Insurance Co., a non-admitted carrier, for its customers.
The withdrawal of insurers from the California home insurance market underscores the growing challenge of providing sufficient coverage in areas that are increasingly prone to natural disasters like wildfires. The trend reflects the broader context of escalating insurance premiums and increasingly stringent underwriting standards, which are prompting some companies to reassess their risks and operations.
Implications for California Policyholders
For the affected homeowners, they will begin to receive nonrenewal notices from QBE following the approval of Builders Reciprocal Insurance Exchange to operate in the state. Policyholders will need to explore alternative insurance options to ensure they remain adequately covered.
Conclusion
The exit of QBE Insurance Corp. represents a pivotal moment in California’s home insurance market, highlighting the challenges faced by insurers in a state grappling with the realities of climate change and economic pressures. Policyholders are urged to stay informed about their insurance options and seek assistance in transitioning to new coverage as necessary.
FAQ Section
What is QBE Insurance Corp. planning to do?
QBE Insurance Corp. plans to exit the U.S. home insurance market, affecting over 37,000 policyholders in California.
How will this affect current policyholders in California?
Current policyholders will begin receiving nonrenewal notices from QBE and will need to find alternative insurance options.
Why are major insurers leaving the California market?
Insurers are leaving the market due to rising wildfire risks, inflation-driven repair costs, and regulatory pricing constraints.
What happens to QBE’s customers after the exit?
If Builders Reciprocal Insurance Exchange receives regulatory approval, they may take on most of QBE’s existing customers.
How long will the transition process take?
The complete withdrawal process for insurers typically takes a year, with a mandatory 75-day notice before nonrenewal.
Key Features of QBE Insurance Corp. Exit
| Feature | Details |
|---|---|
| Number of Affected Policyholders | 37,774 |
| Market Share | 0.36% of California’s home insurance market |
| Withdrawal Process Duration | Up to one year, with 75 days’ notice |
| Potential New Insurer | Builders Reciprocal Insurance Exchange (pending approval) |
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle: QBE to Leave California Home Insurance Market
- Newsweek: California Ruling Could Change Home Insurance Rules
- Insurance Business: QBE to Exit U.S. Home Insurance Market
- The Mortgage Point: California’s Insurance Crisis After Wildfires
- State Farm Newsroom: Understanding the Issues in California
- Wikipedia: California
- Google Search: California home insurance
- Google Scholar: California insurance market
- Encyclopedia Britannica: California insurance
- Google News: California home insurance news
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange 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 major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
