I’m pretty sure State Farm with 30% of the business, will also have much higher losses than Allstate. I still would not be surprised if Allstate non renews a lot (maybe half) of the policies in CA. That’s what they did in FL, after 5 hurricanes hit the state in ’04-’05.
Apparently all the algorithms in the world could not save Allstate from stupid underwriting in California.
They haven’t written new homes in any of these wildfire areas in over 10 years. How is that stupid underwriting? Farmers had a $2.1 Billion loss.
I’m pretty sure State Farm with 30% of the business, will also have much higher losses than Allstate. I still would not be surprised if Allstate non renews a lot (maybe half) of the policies in CA. That’s what they did in FL, after 5 hurricanes hit the state in ’04-’05.
Mayhem really is everywhere.