California’s Massive Wildfires Push Travelers to Seek Higher Premiums
California’s deadly wildfires are raising the specter of higher insurance premiums for homeowners in the state.
After “two significant years in a row of losses, I think the discussion and the debate about the environment is pretty broad and pretty public,” Michael Klein, president of personal insurance at Travelers Cos., said Tuesday in an earnings call with analysts. The New York-based company is in discussions with the state’s Department of Insurance about a filing to increase prices for homeowners in California, Klein said.
The insurer is also talking with regulators about the possibility of not renewing some business in the state. It expects to add new underwriting procedures and further pull back on its appetite for new business after starting to restrict it in 2017.
The fires led to the planned bankruptcy filing of California utility PG&E Corp. and have heightened the focus on the intensity of the state’s wildfire seasons. Travelers reported catastrophe losses, including the fires and Hurricane Michael, of $610 million before taxes in the fourth quarter, an increase of 22 percent.
Related:
- Travelers Grew Q4 Profit Despite California Wildfire, Hurricane Michael Losses
- Trump, California in Battle Over Wildfire Relief Funds
- 5 Lessons to Take Away from the California Wildfires