Major California Insurer Could Drop More Than One Million Policies [Video]

Insurance company State Farm projects it could drop more than one million California policies over the next five years due to impending financial instability.

June filings submitted to the California Department of Insurance found that if the insurance company continues to decline, its sector involving property insurance, comprised of homeowner’s insurance and business liability, could face a total policy count drop from 3.1 million to under 2 million in just five years, the San Francisco Chronicle reported.

Founded in 1922, State Farm is the third most popular insurance brand in the United States, according to YouGov. It serves more than 91 million policies and accounts in industries including auto, fire, life, health, commercial, and financial services.

The insurance company is California’s largest home insurer. It serves more than 1.2 million homeowners in residential or business properties and has additional customers in condo homeowners associations.

The policy drop reflects a decline in customers staying with the company, …