Mercury General Corp. has announced that it is crafting a plan with Tokio Marine America (TMA) and Trans Pacific Insurance Co. which will allow it to offer policies to thousands of new personal lines customers in California.
According to Mercury General chief executive officer Gabe Tirador, the California Department of Insurance and Commissioner Ricardo Lara have been taking the steps needed to modernize the insurance market, which will help in stabilizing the market as well as lead to the creation of a transparent and sustainable model that will be beneficial to consumers in California.
“We believe very strongly in California’s future,” said Tirador.
The proposed move includes plans that will allow forward-looking rate models in rate filings as well as tightening regulatory language to speed up the rate-filing process.
As such, Mercury General has announced it will partner with independent agents which also represent Tokio Marine and has offered additional appointments to more than a dozen TMA agents to help with the transition, according to an AM Best report.
“Innovative solutions surface during challenging times. A diverse group of entities worked together on this project with the common goal of providing coverage for California insurance consumers,” said Tirador.
According to Mercury General, the plan involving Tokio Marine was made with the help of agents as well as CDI leaders.
“We are pleased to have reached an agreement with Mercury Insurance Group... Tokio Marine America remains committed to commercial lines in California — and across the country,” said Tokio Marine America CEO Daisuke Ugaeri.
Tokio Marine America previously announced that it was planning to exit all its personal lines in California by mid-2026 and that it will cease to write new non-automobile personal lines. A CDI filing said that non-renewal notices will take effect on July 1.
Barring any wildfire moratorium notices this year and in 2025, non-renewals may be completed by the beginning of the second half of 2025 while outstanding endorsements should be completed a month after that time period.
Mercury chief sales development officer Brandt Minnich said that customers of the carriers share the same coverage needs as well as insurance agent relationships.
Have something to say about this story? Let us know in the comments below.
