As seen at Insurance Journal:
Allstate Insurance Co., continuing its reappraisal of its hurricane loss exposure along the East Coast, has decided to stop writing new property insurance policies in all areas of Connecticut, New Jersey and Delaware.
The stoppage applies to the writing of new homeowners, condominium, mobile home and landlord policies. It does not affect policies for renters. It also does not affect renewal business on homeowners or any of these lines.
The underwriting change goes into effect in January in Delaware and February in the other two states.
Allstate has been feeling cat-exposure pain since Katrina forced them to rethink both their cat management philosophy and their thoughts on reinsurance. As a result, the good hands folks have been finding themselves with less capacity to offer.
In Connecticut, at least, this move timed so close to the DOI’s report on coastal insurance availability and just as the state legislature is polishing its 2007 legislative agenda could give rise to a rather entertaining winter and spring, I suspect.