The Allstate Corporation filed plans with the California Department of Insurance to resume writing new homeowners policies. The insurer previously paused new business in the state in 2022 due to wildfire risks and rising costs.
Insurance Commissioner Ricardo Lara announced the proposal as part of California's Sustainable Insurance Strategy. The regulatory reform allows insurers to use advanced catastrophe modeling for rate setting to restore market availability.
Insurers must commit to writing more policies in wildfire-prone areas under the new agreement. The Department of Insurance is currently reviewing the filing.
Neither Allstate nor State Farm are accepting new business yet while their respective plans undergo state review.