Wednesday, June 26, 2024
Liberty Mutual in California ditches business owner's policy.

Liberty Mutual in California ditches business owner’s policy.

Property and Casualty Insurer Liberty Mutual to Stop Offering BOP in California

July 26 (Reuters) – Property and casualty insurer Liberty Mutual will stop offering its business owner’s policy (BOP) product in wildfire-prone state California from Oct. 1, in a sign that cost inflation and higher catastrophe losses are pounding insurers’ profits.

A spokesperson for Liberty Mutual also told Reuters in an emailed statement that the company “will not renew its current book of this line of business beginning in December.”

BOP is an insurance product usually required by business owners that bundles all major property and liability risks into a single package.

Global insurers are seeing an erosion in their profitability as they struggle to price the heightened catastrophe risk into premiums amid an environment already fraught with high inflation and regulatory hurdles.

Liberty Mutual joins a growing list of major insurers retreating from California. In May this year, State Farm said that it would stop selling new insurance policies to homeowners in California.

The continued retreat of larger insurance carriers from the California residential property insurance market, signals ongoing regulatory constraints, rising cost inflation and higher catastrophe losses, credit rating agency Fitch said in a note earlier this year.

Impact on California Insurance Market

Reporting by Jaiveer Singh Shekhawat and Manya Saini in Bengaluru; Editing by Shailesh Kuber

Conclusion

Our Standards: The Thomson Reuters Trust Principles.

Source

About Eamon Connor

Meet Eamon Connor, a master of all things business, entrepreneurship, finance, and investing! With a passion for leadership and management, he shares invaluable insights on how to excel in the online business space, make money online, and stand out in the world of marketing and advertising. With Eamon's guidance, you'll be well on your way to startup success!

Check Also

Indigo Physiotherapy welcomes you for business.

Indigo Physiotherapy welcomes you for business.

Open for Business: Indigo Physiotherapy Frederick The Frederick News-Post invites new storefront businesses in Frederick …

Leave a Reply

Your email address will not be published. Required fields are marked *