More Layoffs Coming in Insurance Industry Without Reform

San Francisco might not be the only California colossus in a so-called ‘doom loop.’ The property and casualty insurance market is experiencing a crisis of its own, and the consequences are dire for the entire state economy.

Here’s one recent example. In August, California-based Farmers Insurance laid off 2,400 people, about 11-percent of its workforce. Not coincidentally, Farmers announced in July that it would limit its exposure to the California homeowner’s insurance market, shortly after State Farm and Allstate announced they would no longer be writing new homeowner’s policies in the state.

These companies don’t see California’s regulatory environment, forest management and wildfire risks, and sky-high building costs as a winning formula for their businesses right now. They are acting accordingly.