F
armers Insurance Group is lifting restrictions on new homeowner policies in California, ahead of expected insurance reforms next year. The Los Angeles-based insurer will resume writing home and renter policies at a higher rate than previously capped, with a monthly limit of 9,500 new customers. This includes condo owner and renter insurance, which was previously unavailable.

    Farmers had slowed down new policy issuance in July last year due to record-breaking inflation, severe weather events, and rising reconstruction costs. However, the company now recognizes that the state's insurance market has improved. "With the impending implementation of Commissioner Ricardo Lara's Sustainable Insurance Strategy, we want to be well-positioned to provide more coverage options," said Behram Dinshaw, Farmers' president of personal lines.

    Farmers controlled 15.5% of California's homeowner market last year, ranking second behind State Farm. Allstate, which stopped writing new home insurance policies in November 2022, will also begin taking new customers after Lara's reform strategy is implemented. State Farm, however, has not sent similar signals and may need major rate hikes to avoid insolvency.

    The upcoming reforms are expected to increase prices for many customers but make insurance more available in wildfire-prone areas. Insurance companies will be required to write more policies in high-risk zones as part of the reforms. Farmers had already re-opened new applications for certain commercial insurance types and plans to begin writing personal umbrella insurance policies later this month.