GEICO shuts California offices and lays off employees

US auto insurer GEICO has reportedly closed all 38 of its California agents’ offices and laid off hundreds of its employees.

A report by Insurance Business revealed that agents selling auto, home and other lines of insurance are affected.

GEICO continues to write business in the state however, which was confirmed by a spokesperson, it just means they are unable to write new policies.

“We are monitoring to make sure consumers are protected,” California Deputy Insurance Commissioner Michael Soller said in a statement shared with the publication the The Sacramento Bee.

Earlier this year, it was reported that GEICO was facing a potential $5.2m payout to a woman who claimed she contracted a sexually transmitted infection whilst having sex in the car of a man insured by the company. The claim prompted Tesla’s Elon Musk to call for legal action against law firms pursuing such “crazy” claims.

Copyright © 2022 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.