U.S. Coastal Zones Seeking Stable Hurricane Insurance Rates
Travelers Companies Inc. is leading a number of companies representing eastern coastal states in the pursuit of hurricane home insurance coverage rate regulations. The hope is that with the addition of rate regulations, both homeowners and insurers can breathe a financial sigh of relief as the states try to manage the home insurance crisis that is battering budgets as destructively as hurricanes have battered coastlines. It seems as though no one is able to find affordable home insurance rates.
Toward the end of July, Travelers issued a formal white paper asking for an independent federal commission to regulate rates for hurricane coverage. The report was distributed at the Southeastern Commissioners’ Conference, “Catastrophe Preparedness & Insurance Forum” in Biloxi, Miss. Travelers president and COO, Brian MacLean, hoped that his white paper would effectively move the authority for such regulation from the state level to one that would allow thefour U.S. coastal zones, reaching from Maine to Texas, to be overseen federally. This, he believes, could create a more stable market for insurance and homeowners.
Mississippi Gov. Haley Barbour was one of several officials the plan that was presented to at the conference. Barbour was noted as saying that the probability of receiving help at the federal level is slim to none. This means that regional efforts would likely have to be made to help regulate insurance along the coastal states. He feels just as strongly as MacLean that something needs to be done sooner than later. Unfortunately, the solution may not come as soon as they hope.