The Thomas Fire rages in Ventura County in this 2017 photo. Wildfire is one of the reasons why the largest insurers in the country are pulling away from new business in California. U.S. Forest Service photo

A division of Farmers Insurance is the latest carrier to exit California’s topsy-turvy insurance market.

Farmers Direct Property and Casualty Insurance Co. has filed with the Department of Insurance to withdraw operations in California, including home, auto and renters policies.

Most of the tens of thousands of Farmers Direct policyholders in California will get “soft-landing offers,” reported the San Francisco Chronicle, which will resemble renewals in another Farmers company.

An estimated 2,800 Farmers Direct policyholders may not get an offer, Michael Soller, deputy insurance commissioner, told the Chronicle.

Farmers Direct will continue to service existing policies, but began sending out nonrenewal notices to those with active policies, according to the Chronicle.

Allstate and State Farm have also discontinued new policies in California, citing wildfire damages as a key factor.

In September, California’s insurance regulator announced it would let insurance companies consider climate change in setting their prices.

Unlike other states, California does not let insurance companies consider current or future risks when deciding how much to charge for an insurance policy. Instead, they can only consider what’s happened on a property in the past to set the price.

At a time when climate change is making wildfires, floods and windstorms more common, insurers say that restriction makes it difficult to truly price the risk on properties. It’s one reason why, in the past year, seven of the top 12 insurance companies doing business in California have either paused or restricted new business in the state.