In a further blow to California's insurance market, two more companies have announced their plans to withdraw from the state. According to the filings from the Department of Insurance in California, Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., both subsidiaries of Japanese company Tokio Marine Holdings Inc., will be pulling out of the homeowners and personal umbrella insurance markets in the Golden State.

The withdrawals by these two entities will impact a significant number of policyholders. Together, they currently provide coverage for 12,556 homeowner insurance policies, with premiums totaling $11.3 million. Additionally, Tokio Marine holds 2,732 personal umbrella policies for liability, amounting to approximately $400,000. Those affected by the withdrawals will start receiving nonrenewal notices from July 1, with the proposed effective date set for August 1, 2025.

Unfortunately, the documents filed did not disclose the reasons behind these withdrawals. Despite reaching out to Tokio Marine for comment, KTLA, a local news outlet, did not receive a response before publication.

This latest development comes as California continues to witness a growing number of insurance companies scaling back or exiting the state altogether, creating challenges for residents in obtaining home coverage. State Farm General Insurance Company made headlines in March when it announced its plans to non-renew around 72,000 policies in California, affecting property insurance and commercial apartment policies. Last year, the insurer also stopped accepting new insurance applications for both personal and business property in the state.

Other insurers, including Allstate, Farmer's Insurance, and The Hartford, have made similar moves in recent times, further exacerbating the situation for Californians in need of insurance coverage.

As the insurance landscape in California undergoes significant changes, affected policyholders are advised to explore alternative options and to diligently research other insurance providers that offer coverage in the state.