Payam Javan: California is grappling with an unprecedented crisis in its insurance industry as several major insurance companies have reduced or completely ceased operations in the state. This situation has raised widespread concerns among homeowners and businesses, who now face limited options and higher costs for insurance coverage.

Insurance giants such as State Farm and Allstate have announced that they can no longer provide extensive services in California due to rising costs associated with climate change, widespread wildfires, and other natural disasters. The companies also cited strict government regulations on insurance rates, which they say make it difficult to adapt to new economic realities.

As a result, many residents and business owners are now forced to seek insurance from smaller companies, which often offer higher premiums or more limited coverage. In response, the California government is working to address the crisis by introducing new legislation and easing conditions for insurance companies.