Fairhope, Alabama
SOUTH FAIRHOPE HOMEOWNERS INSURANCE INITIATIVE
Michelle Kurtz of Ecumenical Ministries and the local Hurricane Insurance Initiative group (HHII) gave a report to the city council about their efforts to lower home insurance costs for coastal Baldwin County residents. She said the same presentation had been made to the Governor and County Commission.
Kurtz said their study, using industry data, found that insurance company finances and lack of competition aren't the problem -- as the industry claims.
Kurtz: "The industry is the richest its ever been ... they're in good shape."
DEPT. OF INSURANCE THE PROBLEM
Kurtz said the crisis started in 2006 when the Alabama Dept. of Insurance began allowing insurance companies to use "wildly experimental" hurricane catastrophe models to set rates -- resulting in tens of thousands of policies being dropped and other premiums to increase.
Kurtz: "That leads to unfair price discrimination against coastal counties ... premiums are 225% higher in coastal parts of the state."
She said the problem is really that the Alabama Dept. of Insurance has a lack of information and is biased: homes in coastal counties are not 300% more expensive to repair than other parts of the state -- as the new models indicate.
"CLARITY ACT" THE SOLUTION
Kurtz went on to urge citizens and local governments to put pressure on Governor Bentley to enforce the recently-passed Property Insurance Clarity Act, which will compile and make public previously confidential insurance company information.
Kurtz: "This is the silver bullet ... a regional solution ... we need everybody to make it clear to the governor ... he needs to get this data and enforce it"
(The Property Insurance Clarity Act, which would compile information from insurers on how many policies they write, how much they charge for premiums and the losses they incur. The information would be aggregated into a statewide, public database, searchable by ZIP code.)
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SOUTH FAIRHOPE HOMEOWNERS INSURANCE INITIATIVE
Michelle Kurtz of Ecumenical Ministries and the local Hurricane Insurance Initiative group (HHII) gave a report to the city council about their efforts to lower home insurance costs for coastal Baldwin County residents. She said the same presentation had been made to the Governor and County Commission.
Kurtz said their study, using industry data, found that insurance company finances and lack of competition aren't the problem -- as the industry claims.
Kurtz: "The industry is the richest its ever been ... they're in good shape."
DEPT. OF INSURANCE THE PROBLEM
Kurtz said the crisis started in 2006 when the Alabama Dept. of Insurance began allowing insurance companies to use "wildly experimental" hurricane catastrophe models to set rates -- resulting in tens of thousands of policies being dropped and other premiums to increase.
Kurtz: "That leads to unfair price discrimination against coastal counties ... premiums are 225% higher in coastal parts of the state."
She said the problem is really that the Alabama Dept. of Insurance has a lack of information and is biased: homes in coastal counties are not 300% more expensive to repair than other parts of the state -- as the new models indicate.
"CLARITY ACT" THE SOLUTION
Kurtz went on to urge citizens and local governments to put pressure on Governor Bentley to enforce the recently-passed Property Insurance Clarity Act, which will compile and make public previously confidential insurance company information.
Kurtz: "This is the silver bullet ... a regional solution ... we need everybody to make it clear to the governor ... he needs to get this data and enforce it"
(The Property Insurance Clarity Act, which would compile information from insurers on how many policies they write, how much they charge for premiums and the losses they incur. The information would be aggregated into a statewide, public database, searchable by ZIP code.)
The Times is having video difficulties.
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