GEICO has closed all 38 of its California offices.
Within the last few days, GEICO has suddenly shut down ALL offices across the state of California.
According to the California Department of Insurance, GEICO closed all of its brick-and-mortar stores but continues to sell insurance policies online and through its app.
GEICO is part of Berkshire Hathaway, the publicly traded company run by legendary investor Warren Buffett.
GEICO will no longer sell insurance through phone agents in the state.
Californians who wish to purchase insurance policies from GEICO can do so through the computer or a mobile phone, which might be a struggle for those who aren’t technologically savvy.
“The benefits of having a physical location in California with actual offices and physical agents is that it’s easier for the Department of Insurance to make sure those individuals have a license and meet California’s very stringent standards – consumer protection standards for the sales of insurance,” said former California Insurance Commissioner Dave Jones.
This includes offices in Sacramento, Roseville, and Modesto. The GEICO office in Roseville recently opened in July of 2021, only to be shut down a year later.
SUDDEN LAYOFFS
Two people with family members employed by GEICO said their loved ones were suddenly laid off last week and given only about a week’s notice.
LET THE LAYOFFS BEGIN!
Hundreds of workers are being laid off across California, according to a company message.
Other media outlets have reported that customers may not be able to purchase GEICO coverage over the phone.
“We continue to write policies in California, and we remain available through our direct channels for the more than 2.18 million California customers presently insured with us,” GEICO said in a statement.
While GEICO closed down its stores in California, they currently remain open in other states.
Why Is This Happening??
California State Regulations…
Steve Young, a lawyer for Independent Insurance Agents & Brokers of California, said California state regulations have made it increasingly difficult for insurance companies to conduct business.
“There’s a very complicated insurance rating law that is in effect here, that makes it very difficult for insurers to have confidence that they can get the rate that they need from an actuarial perspective to ride these risks going forward,” Young said.
“It’s kind of emblematic of what’s happening as far as the service industry,” said Congresswoman Doris Matsui (D). “It was the banks at first where the counters were shut down and all of that. I’m just hoping they provide the best service possible because that’s important for the customer.”
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ABOUT THE WRITER:
Elena Patestas is a journalist and writer for Valuetainment media. She attended Pepperdine University in Malibu, California, and Adelphi University on Long Island, New York. She was born and raised in Roslyn, New York, and currently lives in Miami, Florida.
Elena is passionate about bringing positive change to our world and believes education is the root to solving many societal problems. After overcoming a chronic health condition, Elena became passionate about health and believes food is the key to preventing dis-ease and achieving optimum health.
Amongst her many goals, she hopes to bring positive, impactful change to our world to create a healthy, financially sound, and unified society.
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