News and Press Releases for April 2007

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4/24/2007

Governor, Insurance Director Outline Coastal Insurance Efforts

Columbia, S.C. - Governor Mark Sanford and Department of Insurance Director Scott Richardson today outlined the positive impact their approach to addressing the coastal insurance issue is making on the availability of homeowners' insurance.

In recent weeks, Companion has announced plans to write additional homeowners' insurance on the South Carolina coast, and Allstate has pulled back on plans for policy cancellations, in part due to Director Richardson's one-on-one work with those companies. Director Richardson has also recently concluded productive talks with another insurer that is interested in beginning to write coastal policies specifically for condo owners. As well, the director expects tiered wind pool coverage to be approved within the next several weeks. Legislation aimed at impacting rates and availability - proposed by the governor and the director -- is also currently being deliberated in a House subcommittee, with indications being that the legislation will receive a floor vote in time to head to the Senate this session.

"Our approach to addressing the coastal insurance issue is ultimately about three things," Gov. Sanford said. "One, it's about Scott's continued one-on-one interaction with insurance companies in aggressively marketing our state. Two, it's about comprehensive insurance reform, not just with the wind pool, but with the legislation currently being considered in the House. Three, it's about avoiding knee-jerk reactions like what we've seen in Florida and the problems that come with that. By doing these three things, we believe we'll create an environment that will result in lower rates and increased access for homeowners along the coast."

The legislation would create a number of tax incentives aimed at directly impacting the cost to homeowners, for things ranging from disaster mitigation measures to incentives for carrying higher-deductible insurance plans. It would also require that private insurers give premium discounts to homeowners who have made their structures more storm resistant, and would require that insurers give greater notice regarding cancellation of policies.

"The data is becoming more and more clear that South Carolina's focus on increasing the supply of insurance is the right track, versus what's been done in Florida where insurers are fleeing left and right," Richardson said. "We're creating an environment in South Carolina that's going to lead to lower rates and greater availability. I look forward to working with the governor and the members of the General Assembly to continue pushing for these important changes aimed at giving homeowners on the coast some much-needed relief on their property insurance rates."