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. This move is part of a broader trend among insurers responding to increasing risks and costs associated with home insurance in the state. Other companies, including State Farm and Allstate, have also curtailed operations due to similar pressures. Builders Reciprocal Insurance Exchange may take on QBE’s customers if approved. Homeowners are encouraged to seek alternative coverage as the market undergoes significant shifts.
California to See Major Changes in Home Insurance Coverage
QBE Insurance Corp. has announced its decision to exit the U.S. home insurance market, a move that will impact more than 37,000 policyholders in California. This announcement comes after the company stopped writing new homeowners’ policies in the state as of last month, with QBE currently covering 37,774 homes in California as of April.
The company’s withdrawal is part of a broader strategy to narrow its market focus, aiming to concentrate its efforts on more profitable ventures. Currently, QBE holds a minimal share of 0.36% of California’s home insurance market as of 2024. This exit is not an isolated incident; it reflects a growing trend among major insurance providers responding to elevated risks and economic pressures affecting the home insurance sector in California.
In light of its departure, QBE has indicated that Builders Reciprocal Insurance Exchange, a Texas-based insurer, may assume most of QBE’s California customers, provided it obtains regulatory approval to operate in the state. This potential transition underscores the challenges that policyholders may face in securing new insurance coverage.
Regulatory Context and Insurance Market Challenges
The insurance industry in California has been grappling with numerous challenges including rising risks from wildfires, climbing repair costs driven by inflation, and stringent regulatory pricing constraints. Notably, other major insurers like State Farm and Allstate have also curbed or suspended new business in the state in response to these pressures. For example, earlier in April 2024, Tokio Marine Holdings subsidiaries announced their exit from the home insurance market, affecting about 12,556 homes. They later initiated a partnership with Mercury Insurance to ensure a smoother transition for most of their customers.
Similarly, Crestbrook Insurance Co., a subsidiary of Nationwide, began its withdrawal process in June and has provided a transition plan for customers to switch to Acceptance Casualty Insurance Co., which is classified as a non-admitted carrier. As insurers leave the market, the state mandates that they offer policyholders 75 days notice before nonrenewal, providing some time for customers to secure alternative coverage.
Legal Framework for Policy Nonrenewals
While QBE plans to begin issuing nonrenewal notices, it is essential to note that the process of total withdrawal typically spans a year and aligns with standard policy renewal dates. Moreover, in situations where a declared state of emergency exists, insurers are prevented from nonrenewing affected customers for up to two years, thus offering policyholders some degree of protection during crises.
The looming exit of QBE and other insurance companies from California’s home insurance market highlights the persistent challenges that policyholders face—from securing new coverage to addressing rising costs and risks associated with natural disasters. As the landscape continues to evolve, affected homeowners are urged to explore all available options and stay informed about regulatory changes that may impact their coverage.
Conclusion
The exit of QBE Insurance Corp. from the U.S. home insurance market adds urgency to discussions about the shifting insurance landscape in California and underscores the need for policyholders to proactively seek alternative coverage.
Frequently Asked Questions
1. Why is QBE Insurance exiting the U.S. home insurance market?
QBE Insurance Corp. is narrowing its market focus as part of a strategy to improve profitability, resulting in its exit from the California home insurance market.
2. How many policyholders will be affected by this decision?
Over 37,000 policyholders in California will be impacted by QBE’s withdrawal from the home insurance market.
3. What alternatives do policyholders have?
Builders Reciprocal Insurance Exchange may take on most of QBE’s customers if they receive regulatory approval to operate in California, providing a potential alternative for affected homeowners.
4. What is the process for nonrenewal of policies following QBE’s exit?
Insurers must give customers 75 days notice before nonrenewal and the full withdrawal from the market typically takes a year, aligning with policy renewal dates.
Key Features of QBE’s Exit from the Home Insurance Market
| Feature | Details |
|---|---|
| Company Exiting | QBE Insurance Corp. |
| Number of Affected Policyholders | Over 37,000 in California |
| Market Share (2024) | 0.36% |
| Regulatory Notice for Nonrenewal | 75 days before nonrenewal |
| Alternative Insurer Potential | Builders Reciprocal Insurance Exchange (pending approval) |
| Withdrawal Process Duration | Typically one year |
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle: Home Insurance QBE Leave
- Insurance Business: QBE to Exit US Home Insurance Market
- State Farm: Understanding the Issues in California
- Newsweek: California Ruling Could Force Change in Home Insurance Rules
- Wikipedia: Home Insurance
Author: STAFF HERE MISSION VIEJO WRITER
MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
