The cuts at the Los Angeles-based insurance company amount to 11% of its workforce. They come as insurers have shown increasing reluctance to write policies for Californians.
As State Farm and Allstate hit pause on writing new policies in California, Farmers says it won’t pick up the pace.“Given the existing conditions of the insurance industry and the impact they are having on our business, we need to take decisive actions today to better position Farmers for future success,” Raul Vargas, president and chief executive of Farmers Group, said in the layoff announcement Monday.
The “existing conditions” and “macroeconomic challenges” that Vargas refers to are the same rising costs for reconstruction and risk of severe weather events, including fires, floods and tropical storms, that State Farm pointed to earlier this year. Those factors also have driven up the costs of the reinsurance policies that insurance companies take out to cover their own losses in case of major catastrophic events.
Farmers also said it would stop selling new homeowners policies in Florida earlier this year, and plans to pull back further in that state, according toDespite these negative trends, Farmers has been faring better than most of its competitors in California. State Farm’s home and auto lines lost more than $2 billion in the first three months of 2023, with $1.8 billion in losses coming from its car insurance division alone. Farmers, by comparison, lost about $150 million in the same period.
While the major players in California insurance have pulled back from the market, insurance industry groups have been clamoring for reforms to the state’s regulatory system. Since 1988, when California voters approved Proposition 103, insurance companies have only been allowed to increase their rates with the approval of the California Department of Insurance, currently led by Insurance Commissioner Ricardo Lara, according to a strict set of transparency and financial requirements.
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Farmers Insurance says it is cutting 2,400 jobs in bid to ensure long-term profitabilityFarmers Insurance says it will lay off 11% of its workforce — about 2,400 employees — as part of a corporate restructuring aimed at increasing its efficiency and long-term profitability.
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Farmers Insurance says it is cutting 2,400 jobs in bid to ensure long-term profitabilityFarmers Insurance says it will lay off 11% of its workforce — about 2,400 employees — as part of a corporate restructuring aimed at increasing its efficiency and long-term profitability
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Farmers Insurance says it is cutting 2,400 jobs in bid to ensure long-term profitabilityFarmers Insurance says it will lay off 11% of its workforce — about 2,400 employees — as part of a corporate restructuring aimed at increasing its efficiency and long-term profitability.
Weiterlesen »
Farmers Insurance says it is cutting 2,400 jobs in bid to ensure long-term profitabilityFarmers Insurance says it will lay off 11% of its workforce — about 2,400 employees — as part of a corporate restructuring aimed at increasing its efficiency and long-term profitability.
Weiterlesen »
Farmers Insurance says it is cutting 2,400 jobs in bid to ensure long-term profitabilityFarmers Insurance says it will lay off 11% of its workforce — about 2,400 employees — as part of a corporate restructuring aimed at increasing its efficiency and long-term profitability
Weiterlesen »
Farmers Insurance to cut about 2,400 jobs to improve profitabilityFarmers Insurance said Monday it will lay off 11% of its workforce — about 2,400 employees — as part of a corporate restructuring aimed at increasing its...
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