In this week's news will talk about Safeco to exit specialty insurance lines in California by 2026, New York governor signs 2 insurance-related laws, and much more…
Safeco to exit specialty insurance lines in California by 2026
Safeco, a subsidiary of Liberty Mutual, will exit several smaller insurance lines in California due to increasing market risk and volatility, according to a company spokesperson.
The changes will affect a range of products over the next two years as the insurer adjusts its focus in the state.
While Safeco will continue offering home insurance in California, it will stop writing new policies for condominium, renters, and watercraft insurance beginning in early 2025. The exit will also include certain home insurance products written by other Liberty Mutual subsidiaries.
Starting in 2026, Safeco will cease underwriting new policies for specialty vehicles, motorcycles, and non-good driver (standard) auto products. At the same time, the company will begin non-renewing policies in these lines and others it had already stopped offering to new customers, including Liberty Mutual-branded condo and renters insurance, which were closed to new business in 2023.
The changes will affect a range of products over the next two years as the insurer adjusts its focus in the state.
While Safeco will continue offering home insurance in California, it will stop writing new policies for condominium, renters, and watercraft insurance beginning in early 2025. The exit will also include certain home insurance products written by other Liberty Mutual subsidiaries.
Starting in 2026, Safeco will cease underwriting new policies for specialty vehicles, motorcycles, and non-good driver (standard) auto products. At the same time, the company will begin non-renewing policies in these lines and others it had already stopped offering to new customers, including Liberty Mutual-branded condo and renters insurance, which were closed to new business in 2023.
New bill seeks higher auto insurance limits in DC
The District of Columbia city council is reviewing legislation that would raise mandatory minimum auto insurance limits for property damage and third-party liability and require insurers to offer enhanced underinsured motorist (UIM) coverage.
The proposed changes are outlined in the Motor Vehicle Insurance Modernization Act of 2024.
The legislation proposes increasing mandatory minimum limits from $25,000 to $50,000 per person injured in an accident and from $50,000 to $100,000 for all persons injured. The minimum coverage amounts would be tied to the Consumer Price Index to adjust for inflation, according to the bill.
The act would also require carriers to offer enhanced UIM coverage, which provides the same protection as standard UIM but prevents insurers from offsetting payments by factoring in the at-fault driver’s insurance, according to a report from AM Best.
The proposed changes are outlined in the Motor Vehicle Insurance Modernization Act of 2024.
The legislation proposes increasing mandatory minimum limits from $25,000 to $50,000 per person injured in an accident and from $50,000 to $100,000 for all persons injured. The minimum coverage amounts would be tied to the Consumer Price Index to adjust for inflation, according to the bill.
The act would also require carriers to offer enhanced UIM coverage, which provides the same protection as standard UIM but prevents insurers from offsetting payments by factoring in the at-fault driver’s insurance, according to a report from AM Best.
The Hilb Group buys Texas-based property & casualty business
The Hilb Group said it has acquired a Texas-based property and casualty business to expand its presence in the state.
The financial terms of the acquisition, which took effect Dec. 1, were not disclosed.
The unnamed business will be added to the company’s growing property and casualty portfolio in the state and region.
Hilb Group, a portfolio company of global investment firm The Carlyle Group, is a property and casualty and employee benefits insurance brokerage and advisory firm based in Richmond, Va.
The financial terms of the acquisition, which took effect Dec. 1, were not disclosed.
The unnamed business will be added to the company’s growing property and casualty portfolio in the state and region.
Hilb Group, a portfolio company of global investment firm The Carlyle Group, is a property and casualty and employee benefits insurance brokerage and advisory firm based in Richmond, Va.
New York governor signs 2 insurance-related laws
New York Gov. Kathy Hochul has signed two insurance-related laws on Tuesday, one allowing the sale of parametric policies covering weather-related events, and the second expanding eligibility for the state’s home insurance-focused Coastal Market Assistance (C-MAP) program.
The first law, which allows the sale of parametric policies against weather events, was developed at the request of the New York Department of Financial Services. It is expected to go into effect on Jan. 12.
Under that law, parametric policies will be based on the proximity and severity of the events as reported by a state or federal agency. It also requires the policies to be sold by licensed insurance agents and mandates the maintenance of consumer protection at a level similar to traditional personal line policies.
Insurers are also required to disclose that these parametric policies should not be used as substitutes for the more comprehensive property and flood insurance because they might not meet insurance requirements.
The first law, which allows the sale of parametric policies against weather events, was developed at the request of the New York Department of Financial Services. It is expected to go into effect on Jan. 12.
Under that law, parametric policies will be based on the proximity and severity of the events as reported by a state or federal agency. It also requires the policies to be sold by licensed insurance agents and mandates the maintenance of consumer protection at a level similar to traditional personal line policies.
Insurers are also required to disclose that these parametric policies should not be used as substitutes for the more comprehensive property and flood insurance because they might not meet insurance requirements.
US faces growing flood insurance gap – Neptune Flood
A recent report from Neptune Flood explores the widening gap in flood insurance coverage across the United States, as millions of homes face rising risks from climate-driven flooding.
The analysis focuses on the potential of private insurers to step in where federal programs fall short, emphasizing urgent reforms to close this critical gap. With over 20 million homes at moderate to severe flood risk and only 3.8 million insured, the report highlights the need for a collaborative effort to protect homeowners.
The report reveals that private insurers have the capacity to address much of the unmet demand. According to Neptune’s analysis, 90-95% of policies under the National Flood Insurance Program (NFIP) meet private market risk criteria.
The analysis focuses on the potential of private insurers to step in where federal programs fall short, emphasizing urgent reforms to close this critical gap. With over 20 million homes at moderate to severe flood risk and only 3.8 million insured, the report highlights the need for a collaborative effort to protect homeowners.
The report reveals that private insurers have the capacity to address much of the unmet demand. According to Neptune’s analysis, 90-95% of policies under the National Flood Insurance Program (NFIP) meet private market risk criteria.
