News: Trans Pacific Insurance Company and Tokio Marine America Insurance Announce To Leave California

California: Trans Pacific Insurance Company and Tokio Marine America Insurance Co. announced their plan to leave the insurance market in California. As the news stated, both companies would stop their offering in California but continue to serve the existing insurers to the validity of their plan.

2 More Insurance Companies Announce To Leave California

According to the director’s statement, the Department of Insurance has passed new rules so that both companies stop providing their services in the Golden State. Also, Trans Pacific Insurance Co. & Tokio Marine America Insurance Co. are owned by Tokio Marine Holdings Inc.

The companies have together provided 12,556 homeowner policies with a whopping amount of $11.3 million. As mentioned in the company documents, Tokio Marine has more than 2.7K umbrella policies covering assets worth $400 thousand.

When asked the companies don’t provide any withdrawal reason in their press meeting and the ongoing policies will be non-renewable from July 1, but these will be in effect till 1 Aug 2025.

AdinErmie team reached Trans Pacific Insurance Co for an interview but their management didn’t respond to it. Both the Japanese Companies Trans Pacific Insurance & Tokio Marine Insurance are growing companies and their decision to withdraw from California makes it harder for users to obtain good insurance coverage for homes and accessories.

In March, State Farm General Insurance stopped its services in California. This decision impacted more than 72,000 policyholders. Moreover, companies like Farmers Insurance, Allstate, and Hartford also have announced a similar decision. Why these insurance, companies are leaving California? Does the Department of Insurance need to intervene in this matter?  

Tell us your thoughts in the comment section.

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