Property Insurers in California: Understanding Their Withdrawal and Its Impact on State Insurance Regulation

Summary

This practice note will explore the decisions of major property insurers to no longer issue types of property insurance in California. It analyzes the market-driven and climate-related reasons for insurers' flight from the state, explains the role that California's regulatory scheme played in events, guides practitioners that represent insurers through the steps of withdrawing from a line of business in California, and underscores the parallels between California's property insurance and cannabis insurance markets. The significant ways that this behavior in the insurance sector influences the legal industry is also discussed.