California, September 8, 2025
News Summary
California faces significant upheaval in its home insurance sector as QBE Insurance Corp. announces its exit from the U.S. home insurance market. This decision affects over 37,000 policyholders in the state, pointing to ongoing challenges from environmental risks and stringent regulations. QBE has ceased writing new policies and will issue nonrenewal notices over the next year, leaving policyholders to seek alternative coverage. Meanwhile, Builders Reciprocal Insurance Exchange is poised to take on many of QBE’s clients, pending regulatory approval.
California is set to witness significant changes in its home insurance landscape as QBE Insurance Corp. announces its exit from the U.S. home insurance market. This withdrawal will directly affect more than 37,000 policyholders across the state, highlighting ongoing challenges in the home insurance sector attributed to environmental risks and regulatory issues.
As part of its strategic decision to narrow its market focus, QBE stopped writing new homeowners’ policies in California last month and has indicated its plans to begin issuing nonrenewal notices shortly. This decision must comply with California’s regulations mandating that insurers provide a 75-day notice before non-renewal, making this exit process likely to span over a year, during which current policyholders will continue to be covered until their respective policy renewal dates approach.
As of April 2024, QBE Insurance Corp. covered 37,774 homes within the state, representing approximately 0.36% of California’s home insurance market. With its departure, there are concerns about the insurance coverage options available to the affected policyholders, especially in a climate where other major insurers such as State Farm and Allstate have also reduced or ceased new business in California. The primary reasons for this contraction include rising wildfire risks, surging repair costs due to inflation, and stringent regulatory constraints on pricing. As the insurance market adapts to these evolving challenges, the sustainability of home insurance remains uncertain.
In an effort to assist current QBE customers, Builders Reciprocal Insurance Exchange, based in Texas, plans to take on most of QBE’s clientele, contingent upon receiving regulatory approval to operate in California. This step could provide a safety net for those seeking new coverage after QBE’s exit. However, the timeline for this transition will depend significantly on regulatory processes.
Notably, this is not an isolated incident. In April of this year, subsidiaries of Tokio Marine Holdings also announced their exit from the California home insurance market, impacting 12,556 homes. They subsequently formed an agreement with Mercury Insurance to help transition most of those affected customers. Similarly, Crestbrook Insurance Co., a Nationwide subsidiary, initiated its exit in June but offered existing customers a transition option to Acceptance Casualty Insurance Co., which operates as a non-admitted carrier.
California’s regulatory framework restricts insurers from non-renewing affected customers during a declared state of emergency for up to two years, providing an additional layer of protection for homeowners at risk during emergencies. While the procedure to withdraw from the market follows set protocols, the implications for homeowners in California are considerable, underscoring the urgent need for alternative solutions and adaptative measures in a changing climate.
Critical Insights on the Current Insurance Market
- QBE Insurance Corp. exits California affecting 37,774 homeowners.
- Transition of clients may occur with Builders Reciprocal Insurance Exchange.
- California’s home insurance market faces challenges from inflation and natural disasters.
- Major insurers like State Farm, Allstate, and Tokio Marine Holdings have also retrenched recently.
- Regulatory frameworks exist to protect homeowners during the transition.
FAQ Section
What does QBE’s exit from the home insurance market mean for policyholders?
QBE’s exit from the home insurance market means its more than 37,000 California policyholders will need to find new insurance coverage as their policies expire.
How long will policyholders remain covered after QBE’s exit?
Policyholders will remain covered until their respective policy renewal dates, as QBE must issue nonrenewal notices 75 days prior to the expiration of their policies.
Who may take over QBE’s policyholders?
Builders Reciprocal Insurance Exchange has plans to take over most of QBE’s customers, pending regulatory approval to operate in California.
Are other insurers experiencing similar exits from the market?
Yes, other major insurers like State Farm and Allstate have also begun reducing or ceasing business in California due to growing wildfire risks and rising repair costs.
What protections are in place for policyholders during this transition?
California laws prohibit insurers from nonrenewing policies during declared states of emergency for up to two years, offering some level of security for affected homeowners.
Key Features of the QBE Exit from the Home Insurance Market
| Feature | Details |
|---|---|
| Insurer Exiting | QBE Insurance Corp. |
| Effected Policyholders | More than 37,000 in California |
| New Business Halt | Stopped writing new policies in California last month |
| Market Share | 0.36% of California’s home insurance market |
| Possible Buyer | Builders Reciprocal Insurance Exchange, pending approval |
| Regulatory Requirements | 75-day notice before nonrenewal |
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 QBE Leave
- State Farm: Understanding the Issues in California
- Newsweek: California Ruling Could Force Change Home Insurance Rules
- Wikipedia: Home Insurance
- Google Search: California Home Insurance
- Google Scholar: California Home Insurance Market
- Encyclopedia Britannica: Home Insurance
- Google News: California Home Insurance Crisis
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, 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 the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
