Commissioners Debate Regional Solutions to Gulf Coast Insurance
At a May 30 forum hosted by America's Wetland Foundation, Louisiana Insurance Commissioner Jim Donelon and Mississippi Insurance Commissioner Mike Chaney acknowledged the difficulties of developing a regional solution to the Gulf Coast's insurance issues, mainly because the most hurricane-prone states are all located on the Gulf Coast with large coastal populations and increased property risk. Chaney also noted that it is unclear which state laws would govern hurricane claims involving policies purchased out-of-state. Both commissioners agreed that constructing elevated, stronger homes away from wetlands and flood plains makes policies more affordable, that reinsurance spreads risk and makes communities more insurable, and that new hurricane models elevate risk and provide the justification insurers need to hike rates.
Commissioners Discuss Gulf Disaster Insurance (New Orleans Times-Picayune 5/30/12)