California, September 8, 2025
News Summary
QBE Insurance Corp. will exit the U.S. home insurance market, affecting over 37,000 policyholders in California. This move follows a broader trend among insurers grappling with rising wildfire risks and regulatory constraints. Builders Reciprocal Insurance Exchange may step in to support affected customers, pending regulatory approval. As the insurance landscape shifts, policyholders face new challenges in securing coverage.
California
QBE Insurance Corp. has announced its decision to exit the U.S. home insurance market, a move that will directly affect over 37,000 policyholders in California. This decision comes on the heels of QBE ceasing to write new homeowners’ policies in the state as of the previous month, indicating a significant contraction in its business operations.
As of April 2024, QBE was responsible for providing coverage to 37,774 homes across California. This withdrawal is part of a broader strategy by QBE to narrow its market focus and improve its financial health. The company accounted for approximately 0.36% of California’s home insurance market in 2024, a small yet notable share.
In response to the exit by QBE, Builders Reciprocal Insurance Exchange, a Texas-based insurer, is poised to potentially take over most of QBE’s customers. However, this transition is contingent upon receiving the necessary regulatory approval to operate in California, an essential step that will dictate the future of affected policyholders.
QBE’s withdrawal reflects a troubling trend in California’s home insurance landscape, which has seen several major insurers, including State Farm and Allstate, also reduce or entirely halt new business operations. These actions have been largely driven by increasing risks associated with wildfires, rising inflation-fueled repair costs, and regulatory pricing constraints that make it difficult for insurers to operate profitably in the state.
This year alone, other insurers have made similar moves. In April 2024, subsidiaries of Tokio Marine Holdings announced their decision to exit the home insurance market, which impacted 12,556 homes. They later arranged with Mercury Insurance to transition most of those customers. Meanwhile, Crestbrook Insurance Co., a subsidiary of Nationwide, began its exit strategy in June, offering customers a transition option to Acceptance Casualty Insurance Co., which operates as a non-admitted carrier.
The withdrawal process mandated by California regulations requires insurers to give affected customers a notice period of 75 days before nonrenewal takes effect. Typically, the entire withdrawal process spans one year, aligning closely with existing policy renewal dates. Furthermore, in scenarios where a state of emergency is declared, insurers are prohibited from nonrenewing impacted customers for a duration of up to two years.
QBE intends to commence issuing nonrenewal notices after Builders Reciprocal Insurance Exchange secures the necessary approval to begin writing homeowners’ policies in California. This will set the stage for a significant transition for thousands of current policyholders as they seek new coverage options in an increasingly challenging insurance landscape.
FAQ
What is QBE Insurance Corp.’s recent decision regarding the U.S. home insurance market?
QBE Insurance Corp. has decided to exit the U.S. home insurance market, which will impact over 37,000 policyholders in California.
How many homes were covered by QBE in California before their exit?
As of April 2024, QBE was covering 37,774 homes in California.
What are the reasons behind the withdrawal of QBE and other major insurers from the California market?
The withdrawal is driven by rising wildfire risks, increasing inflation-driven repair costs, and regulatory pricing constraints that make it difficult for insurers to remain profitable.
Will affected QBE policyholders be able to transition to another insurance provider?
Yes, Builders Reciprocal Insurance Exchange may take over most of QBE’s customers, pending regulatory approval to write homeowners’ policies in California.
Key Features Chart
| Feature | Details |
|---|---|
| Company Exiting | QBE Insurance Corp. |
| Impact | Affects over 37,000 policyholders in California |
| Current Coverage | 37,774 homes in California |
| Market Share in 2024 | 0.36% |
| Notice Period for Nonrenewal | 75 days |
| Regulatory Approval Needed | For Builders Reciprocal Insurance Exchange to take over customers |
Deeper Dive: News & Info About This Topic
- Insurance Business: QBE to Exit US Home Insurance Market
- SF Chronicle: Home Insurance – QBE to Leave California
- Newsweek: California Ruling Could Force Change in Home Insurance Rules
- SF Chronicle: California Home Insurance Tool – State Farm
- State Farm Newsroom: Understanding the Issues in California
- Wikipedia: Home Insurance
- Google Search: California Home Insurance Crisis
- Google Scholar: California Home Insurance
- Encyclopedia Britannica: Homeowners Insurance
- Google News: California Home Insurance News
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles 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 the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
