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 decision follows a strategy to focus on more profitable sectors and comes amid rising risks from wildfires and inflation. Builders Reciprocal Insurance Exchange is expected to take over most of QBE’s customers, pending regulatory approvals. This move mirrors a larger trend among insurers in the state, highlighting ongoing challenges in the California home insurance market.
California
QBE Insurance Corp. has announced its decision to exit the U.S. home insurance market, a move that will directly impact over 37,000 policyholders in California. This significant withdrawal comes after the company ceased writing new homeowners’ policies in California last month. As of April, QBE was insuring approximately 37,774 homes across the state.
The exit from the home insurance market aligns with QBE’s strategy to narrow its market focus and concentrate on more profitable sectors. Following regulatory approval processes, Builders Reciprocal Insurance Exchange, a Texas-based insurer, is expected to take over the majority of QBE’s customers in California, should they receive the necessary permissions to operate within the state.
Impact on the Market
QBE’s share of California’s home insurance market was relatively small, accounting for about 0.36% in 2024. This move comes at a time when several major insurers, including State Farm and Allstate, have also reduced or ceased writing new policies in the state. These actions are primarily due to escalating risks from wildfires, increased repair costs driven by inflation, and various regulatory pricing constraints.
In addition to QBE’s exit, other insurers have made similar moves. In April 2024, Tokio Marine Holdings announced its withdrawal from the home insurance market, affecting more than 12,556 homes. That same month, Tokai Marine arranged with Mercury Insurance to transition most of their customers. Furthermore, the Crestbrook Insurance Co., a subsidiary of Nationwide, began its exit from the market in June, offering its clients a chance to transition to Acceptance Casualty Insurance Co., a non-admitted carrier.
Regulatory Requirements for Insurers
The withdrawal process from the California home insurance market is governed by specific regulations. Insurers must provide affected customers with a notice of 75 days prior to nonrenewal. The entire process of exiting typically spans a year, correlating with the timing of policy renewals. In instances where a state of emergency is declared, insurers are prohibited from nonrenewing policies of affected customers for up to two years.
QBE is poised to begin the process of issuing nonrenewal notices to its customers once Builders Reciprocal Insurance Exchange secures the proper approvals to operate in California.
Why Insurers are Exiting
In recent years, the California home insurance market has faced significant challenges. The increasing frequency and intensity of wildfires have contributed to heightened risk assessments by insurers. Coupled with inflation-driven increases in repair and rebuilding costs, as well as the impact of regulatory constraints on pricing, many companies are retreating from offering new policies or completely exiting the market.
Conclusion
The exit of QBE Insurance Corp. from the home insurance market underscores a troubling trend for property insurance in California. With over 37,000 residents set to be impacted, the situation highlights the ongoing challenges faced by insurers and policyholders amid environmental and economic pressures.
FAQs
What is QBE Insurance Corp.’s recent decision regarding its home insurance market?
QBE Insurance Corp. has decided to exit the U.S. home insurance market, impacting over 37,000 policyholders in California.
How many policyholders in California will be affected by this move?
The exit will impact more than 37,000 policyholders in California.
What is the expected timeline for QBE’s withdrawal process?
The withdrawal process is expected to take up to a year, with customers receiving a 75-day notice before nonrenewal.
Is there another insurer taking over QBE customers?
Yes, Builders Reciprocal Insurance Exchange may take on most of QBE’s customers, pending regulatory approval to operate in California.
Key Features Summary
| Feature | Details |
|---|---|
| Insurer | QBE Insurance Corp. |
| State Affected | California |
| Number of Policyholders Affected | 37,000+ |
| Current Home Coverage | 37,774 homes |
| Market Share in CA (2024) | 0.36% |
| Official Withdrawal Notice Period | 75 days before nonrenewal |
| Expected Transition Insurer | Builders Reciprocal Insurance Exchange |
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle: California Home Insurance Tool
- Insurance Business: QBE to Exit US Home Insurance Market
- State Farm Newsroom: Understanding the Issues in California
- Newsweek: California Ruling Could Force Change in Home Insurance Rules
- Wikipedia: Home Insurance
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, 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 the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
