California, September 8, 2025
News Summary
QBE Insurance Corp. has announced its exit from the U.S. home insurance market, affecting over 37,000 policyholders in California. The company halted writing new homeowners’ policies and will begin nonrenewal notices under California law. This decision reflects larger industry challenges driven by rising wildfire risks and inflation. Other insurers have also scaled back operations in California, signaling a significant shift in the home insurance landscape. As the market evolves, policyholders will need to seek alternative coverage options.
California
QBE Insurance Corp. has announced its decision to exit the U.S. home insurance market, a move that will significantly affect more than 37,000 policyholders in California. The insurer halted the writing of new homeowners’ policies in the state last month, taking one more step toward its planned withdrawal from the market.
As of April, QBE was responsible for insuring 37,774 homes across California. This strategic pivot aims to narrow the company’s market focus amid significant challenges in the industry, particularly in California. The insurer accounted for 0.36% of the state’s home insurance market as stated in reports for 2024.
Amid increasing pressures from rising wildfire risks and inflation-driven repair costs, many insurers have reconsidered their business strategies in California. State Farm and Allstate are among prominent companies that have either ceased or scaled back their operations in the state. The shift is part of a broader trend where major insurers are grappling with regulatory pricing constraints that have made offering home insurance less viable.
Impact on Policyholders
QBE’s withdrawal from the California home insurance market is expected to lead to a substantial disruption for its existing customers. Under California law, an insurer must provide customers with 75 days’ notice before nonrenewal of their policies. This ensures that policyholders have adequate time to seek alternatives.
The overall process of exiting the market typically takes about one year to complete, as it aligns with the policy renewal dates. Additionally, should a state of emergency be declared, insurers are prohibited from nonrenewing impacted customers for up to two years.
In an effort to provide a smoother transition, Builders Reciprocal Insurance Exchange, a Texas-based insurer, is seeking regulatory approval to operate in California and potentially take on most of QBE’s policyholders. If this approval is granted, QBE plans to begin issuing nonrenewal notices to its customers thereafter.
Recent Trends in Home Insurance Market
QBE’s withdrawal joins a list of similar actions from other insurers. In April 2024, subsidiaries of Tokio Marine Holdings announced their plans to exit the home insurance market, affecting 12,556 homes. This move was followed by an arrangement with Mercury Insurance to transition most of those customers. Meanwhile, Crestbrook Insurance Co., a subsidiary of Nationwide, started its exit process in June and has provided customers with an option to transition to Acceptance Casualty Insurance Co., a non-admitted carrier.
The challenges in California’s home insurance market reflect broader issues facing the insurance industry, particularly in regions prone to significant natural disasters. As companies continue to adapt to these changing conditions, consumers may find themselves facing fewer options for coverage.
Conclusion
The exit of QBE Insurance Corp. from the U.S. home insurance market serves as a significant reminder of the complexities and challenges present in the insurance industry today. With other major insurers also scaling back operations in California, policyholders may need to remain vigilant and proactive in seeking out suitable coverage options as the landscape evolves.
FAQ
Why is QBE Insurance withdrawing from the California home insurance market?
QBE is exiting the market as part of a strategy to narrow its focus amidst challenges such as rising wildfire risks and inflation-driven repair costs.
How will this affect policyholders in California?
Over 37,000 policyholders will be impacted, as QBE will begin issuing nonrenewal notices and customers will have 75 days to find new insurance.
What options do policyholders have after QBE exits?
Policyholders will need to seek coverage with other insurers, with some options like Builders Reciprocal Insurance Exchange being considered for taking over QBE customers.
Key Features of the QBE Withdrawal
| Feature | Details |
|---|---|
| Insurance Provider | QBE Insurance Corp. |
| Market Exit | U.S. Home Insurance Market |
| Policyholders Affected | 37,000+ in California |
| Withdrawal Notice Period | 75 days |
| Market Share | 0.36% in California |
| Transition Options | Builders Reciprocal Insurance Exchange (pending approval) |
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle: California Home Insurance Tool
- Insurance Business: QBE to Exit U.S. Home Insurance Market
- San Francisco Chronicle: Home Insurance – QBE Exit
- State Farm Newsroom: Understanding the Issues in California
- Wikipedia: Insurance in the United States
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego 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 Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
