QBE Insurance Exits California Home Insurance Market

California, September 8, 2025

News Summary

QBE Insurance Corp. has announced its exit from the U.S. homeowners’ insurance market, impacting over 37,000 policyholders in California. This withdrawal aligns with a trend of major insurers reassessing their operations amid rising risks linked to wildfires and inflation. Existing customers may transition to Builders Reciprocal Insurance Exchange, pending regulatory approval. The exit process will officially begin with nonrenewal notices expected to be sent out soon. This significant shift in the insurance landscape raises concerns for affected homeowners as they seek alternative coverage.

California is set to see a significant shift in its homeowners’ insurance landscape as QBE Insurance Corp. announced its decision to exit the U.S. home insurance market. This withdrawal will affect more than 37,000 policyholders across the state, marking a noteworthy development in a sector already grappling with complications.

QBE has ceased writing new homeowners’ policies in California as of last month, and as of April 2024, their coverage extended to 37,774 homes. This decision is part of the company’s broader strategy to narrow its market focus, responding to challenges that have led to increased scrutiny and potential risks associated with property insurance in the region.

In context, QBE’s presence in California has been minimal, accounting for only 0.36% of the state’s home insurance market as of 2024. The decision to withdraw comes amid a troubling trend where other major insurers, including State Farm and Allstate, have either ceased new business or scaled back existing operations in California. These companies cited rising risks related to wildfires, increasing costs for repairs driven by inflation, and regulatory pricing constraints as significant factors influencing their business strategies.

Potential Solutions for Policyholders

As QBE transitions out of the market, its existing customers may have a potential alternative. Builders Reciprocal Insurance Exchange, a Texas-based insurance provider, has expressed intent to take on most of QBE’s policyholders, provided it secures regulatory approval to operate in California. This transfer could provide a smoother transition for affected homeowners looking for new insurance solutions.

Withdrawal Process and Timeline

The official process for QBE’s exit will begin when Builders Reciprocal Insurance Exchange receives the necessary approvals. Once this occurs, QBE is expected to start sending nonrenewal notices to its customers. According to California regulations, insurers are required to provide affected policyholders with a minimum of 75 days’ notice before nonrenewal, and the complete withdrawal process typically unfolds over the course of a year, aligning with each policy’s renewal date.

Importantly, during periods of declared state emergencies, insurers are legally prohibited from nonrenewing affected customers for a duration of up to two years. This regulation aims to protect consumers from sudden coverage loss in times of crisis.

Wider Impacts on the Insurance Market

QBE’s exit is part of a broader trend where various insurers are reevaluating their home insurance offerings in California. In recent months, subsidiaries of Tokio Marine Holdings planned to leave the market, which would impact 12,556 homes, but later negotiated with Mercury Insurance to transfer most of these customers instead. Additionally, Crestbrook Insurance Co., a Nationwide subsidiary, began its exit in June, offering policyholders a transition to Acceptance Casualty Insurance Co., a non-admitted carrier.

The current environment in California illustrates persistent tensions as insurers seek to balance risks with the regulatory landscape, all while facing the realities of natural disasters such as wildfires frequently affecting the region.

Conclusion

The decision by QBE Insurance Corp. to exit the California home insurance market will have implications for tens of thousands of current policyholders. With existing options dwindling, the potential for Builders Reciprocal Insurance Exchange to absorb many of the displaced customers will be closely monitored as the regulatory process unfolds.

FAQs

Key Features of QBE’s Withdrawal from the Home Insurance Market

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 Issues in California
• Newsweek: California Ruling on Home Insurance Rules
• Wikipedia: Home Insurance
• Encyclopedia Britannica: Homeowners Insurance

Author: STAFF HERE LOS ANGELES WRITER

LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of 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 from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana