Safeco said today it will increase its presence in California–an announcement that comes 12 days after Allstate revealed it would stop selling homeowners insurance in the state.
"California remains one of our key markets. Not only do we remain committed to our existing customers throughout the state but, with our more than 1,700 independent agents in California, we are determined to expand our presence there," said Mike Hughes, insurance operations executive vice president for Seattle-based Safeco.
The company said it will be particularly active in the area of homeowners insurance and noted that earlier this year it had reduced its homeowners' insurance rates by an average of 20 percent in California.
Safeco also mentioned that its customers can purchase identity theft coverage for $12 a year, which includes a case manager to work closely with the policyholder, and it offers additional rate reductions of up to 30 percent for new homes.
Mr. Hughes said Safeco is very competitively positioned in California, has been a provider of auto and home coverage "for decades, and we're working hard to stay at the top of the list in this competitive market."
The Safeco move appears to support the forecast of California Insurance Commissioner Steve Poizner, who said after Allstate's announcement it would not seek new business that he expected "there will be no shortage of insurance companies that will be more than happy to compete to serve more than one million Allstate customers."
Mr. Poizner also called Allstate's decision "shortsighted" and ordered the carrier to prove it is not charging excessive rates. He noted then that, in addition to Safeco, companies such as Farmers, State Farm, AAA and The Hartford have reduced insurance rates for California customers by more than $1 billion.
Amongst all property-casualty insurers in California, Safeco currently ranks 17th in the state, according to National Underwriter's Highline Data Service. In the personal lines market the company ranks 12th.
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