from 1891 to 2009 54 major hurricane strikes on the east coast of the u.s. nine major hurricanes hit...
TRANSCRIPT
From 1891 to 2009 ◦ 54 major hurricane strikes on the east coast of
the U.S. Nine major hurricanes hit GA/SC protected
coast Of these nine, six major hurricanes hit SC 120 year period for Beaufort County
◦ Only eight total hurricane strikes◦ One major Class 3 - Hurricane Gracie in 1960
Beaufort County’s most damaging storm◦ The Great Sea Island Hurricane of 1893 ◦ Downgraded to a category 2 or 1 by the time it
hit the county
Here are the facts
The NHC gives its risk ratings in the form of a projected number of years .
This rating is based on the number of hurricane strikes that have hit Beaufort County, and South Carolina, over the last 100 years.
What is our hurricane risk rating?
South Carolina Property/CasualtyDirect Premiums Written ($000)
2011 6,728,444
2010 6,515,790
2009 6,522,233
2008 6,706,1112007 6,841,951Total 33,314,529
2011 4,375,5252010 3,690,0112009 3,459,9732008 3,496,3332007 3,325,582Total 18,347,424
Direct Losses Incurred ($000)
$14,967,105
Direct Premiums minusDirect Losses
Chairman Hayes has appointed a Coastal Insurance Subcommittee to address the questions raised during the hearing.
Chaired by Senator Luke Rankin. Senator Tom Davis will serve on this subcommittee.
Fall as % of Summer
Increase inDirect TourismExpenditures
(000)
Increase in Total
EconomicImpact(000)
Charleston
65 - 85 %
$440,558. $642,682.
Beaufort County
35 - 75 %
$386,752. $680,684.
$827,310. $1,323.
If we could improve FALL TOURISM in four years…
Storm of Money How insurance companies rigs the system by Tony Bartelme with the Charleston Post & Courrier.It was just annouced that Tony Barleme was a Pulitzer finalist for these series of articles.
They are stored on his blog at http://bartelme.blogspot.com/
Thank you Tony
Wall Street Journal report.
“In high-risk hurricane zones, insurance brokers say wind coverage (which may not come with basic insurance but instead is sold as a separate policy”
“Complicating matters, a home’s location could make it ineligible for certain types of coverage”. “experts say some insurers won’t provide wind coverage in risky markets, such as Palm Beach FL, and Hilton Head, SC”.
To require SC DOI to hold bi-annual public hearings on property insurance across the state.
Coastal Insurance Companion Bills S. 569 / H. 3903
S.569 and H.3903 are identical companion bills. Both are linked below. http://www.scstatehouse.gov/sess120_2013-2014/bills/569.htm
http://www.scstatehouse.gov/sess120_2013-2014/bills/3903.htm
In 2006 the SC coast was facing a crisis as the number of coastal insurers was declining.
Most of the insurers were considering reducing or halting sales of property & casualty insurance in the coastal zone.
In 2007 the General Assembly passed sweeping legislation to address the exodus of insurers.
The pro-market legislation worked as the number of insurers increased by over 25% in the next 6 years, and the number of policies in the SC Wind Pool (market of last choice) declined.
Availability of insurance has increased
Concern over strengthening the state’s coastal insurance market by: ◦Increasing competition ◦Increasing affordability
Legislation has been introduced by Senator Tom Davis (Beaufort) that would enhance and build on the 2007 legislation.
Incentivize insurers to participate in the coastal market ◦Additional 25% tax credit on premium tax
◦Insurer’s coastal market share must equal 80% of the insurer’s state market share
Increase Competition
Incentivize citizens to better prepare their homes for storms by participating in the SC Safe Home program.
Funding for mitigation programs will be increased by an additional 1% of premium taxes admitted and non-admitted insurance companies.
Increase Mitigation
Require insurers to provide their policy holders a recap of coverage provided
Summary of discounts that they might be able to use, replacement cost of home, options to increase deductible, etc.
Additional information to help consumers will be added to the DOI website. ◦Additional premium comparisons◦Mitigation discounts ◦List of insurance companies by line of
business◦ Info on catastrophe savings accounts.
Increase Information
Director of Insurance must hold an annual public hearing on the coast
Prepare an annual report for the SC General Assembly
Initiate a multimedia campaign to raise awareness of steps home owners can do to mitigate storm damage and lower insurance premiums.
Increase Transparency
Builds on the 2007 market-oriented legislation. Designed to help the 2007 legislation reach its full potential – many competitors, affordable insurance, and a more storm-resistant coast.
Increases the knowledge base of consumers by showing them how they can make their homes more storm resistant, and how they can be more informed insurance buyers.
Strengthens the market-oriented approach to coastal insurance, and rejects the use of massive state government intervention that has proved so unsuccessful in other states.
Key Points
The South Carolina Department of Insurance will hold a public hearing in accordance with the requirements of Section 38-75-310(7),Thursday, May 9, 2013, 5:30-7:30 p.m. at Buyer Auditorium, 2nd floor of Mark Clark Hall. Mark Clark Hall is located on the campus of The Citadel, The Military College of South Carolina which is located at 171 Moultrie Street, Charleston, SC 29409.
The purpose of this hearing is to provide an opportunity to discuss and offer input concerning the status of the coastal property insurance market in South Carolina. The telephone number for general information for The Citadel, The Military College of South Carolina is 843-225-3294. For questions concerning the hearing, please contact the SC Department of Insurance 1-800-768-3467.
NOTICE OF PUBLIC HEARING
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3. National Hurricane Center 2010
4. National Hurricane Center 2010
5. National Hurricane Center 2010
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7. National Association of Insurance Commissioners – www.naic.org
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9. Russ Dubisky, SC Insurance New Service
10. Russ Dubisky, SC Insurance New Service
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15. Wall Street Journal, February 15, 2013. Annamaria Androitis: Protecting Your Home from Earth, Wind & Fire
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