List of bankruptcies of insurance companies in USA (2024)

FAQs

How many insurance companies go out of business? ›

In recent years, that number has been less than 10 annually. For policyholders, though, even one failure a year is too many if it's their insurer that goes under.

Earlier in July, Farmers Insurance announced that it is no longer offering new business or renewing any of its auto, home and umbrella policies in Florida. In mid-2022, Bankers Insurance Company reported its exit from Florida, only to be followed by AIG and Lexington Insurance, a subsidiary of AIG.

Since 2017, eleven property and casualty companies that offered homeowners insurance in Florida liquidated. Five of those companies liquidated in 2022, and United Property & Casualty Insurance Company liquidated in 2023.

Executive Life Insurance Company (1991) - One of the largest life insurance companies in the US, it went bankrupt due to investment losses in junk bonds.

In simple terms, insurance companies are leaving Florida because it's best for their bottom line. When an insurance company is paying out more in claims than it's taking in, they run the risk of not being able to pay out any claims at all.

Between their various companies, State Farm and Allstate occupied five of the top 10 spots on the most-sued list. Also on the list are Safeco, a defendant in 880 cases; Scottsdale Insurance Company, 855; Liberty Mutual, 831; GeoVera Speciaty Insurance Company, 687; and Lexington Insurance Company, 585.

WASHINGTON, D.C. (NewsNation) — Days after a major insurance provider announced it was pulling out of Florida due to environmental risks, State Farm Insurance announced Thursday it is recommitting itself to the residents of the state, NewsNation has learned.

Is Progressive pulling out of Florida? Progressive said it has no plans of leaving Florida. A spokesperson told WFLA that this rebalancing would help the company continue writing business in Florida in a “meaningful” way.

The Auto Club Insurance Company (AAA) of Florida has announced that it will not renew a “very small percentage” of auto and home insurance package policies in Florida. But, the insurer stressed, it is not leaving the state — it's just trying to manage its risk. In fact, it plans on growing its business in the state.

Newsweek: "Florida Could Soon Become Uninsurable—and Other States Will Likely Follow" RFF Fellow Penny Liao is quoted several times in an article about the increasing risks of insuring properties that often face the brunt of climate-related disasters.

What major insurer is leaving Florida? ›

Farmers Insurance is now among Bankers Insurance, Centauri Insurance and Lexington Insurance, a subsidiary of AIG, in withdrawing from the Florida market since last year. The Florida Department of Financial Services website lists 14 companies that are currently in liquidation in the receivership process.

The skyrocketing cost of home insurance in Florida is causing some residents to sell their properties and relocate, according to a survey by real estate brokerage Redfin and data available on Zillow.

Though this circ*mstance is uncommon, insurance companies have been known to fail. This can happen for a number of reasons, each leading to problems for policyholders. However, you are not without protection. In the event that an insurer goes bankrupt, your state's guaranty association steps in.

If an insurance company is not well-managed, it may take on too much risk or make poor investment decisions, leading to financial losses that it is unable to recover from. This not only becomes worrisome for the policyholders but also increases the risk of making the company bankrupt.

People are leaving the insurance industry

The insurance industry will lose half its workforce between now and 2036 as almost 400,000 employees retire.

Dear Friends, Somewhere around 80% of new insurance agents hired by independent marketing organizations fail and quit within their first 12 months of getting their license. And then within 5 years, 80% of the remaining new insurance agents will struggle and quit! That is a 90% failure rate for new agents.