State Farm's Decision: Dropping 72,000 Home Insurance Policies in California

State Farm, the leading insurer in California, is set to stop renewing approximately 72,000 homeowners, renters, and commercial property insurance policies over the next year, with a focus on high fire danger areas. The company's decision is attributed to financial strain from wildfire damage payouts and a significant drop in available capital. State regulators and lawmakers are expressing concern and considering changes to stabilize the insurance market and address the impact of wildfires and climate change on insurance calculations.