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NAIC Launches Nationwide Homeowners Data Call as Market Pressures Intensify

NAIC Launches Nationwide Homeowners Data Call as Market Pressures Intensify

The National Association of Insurance Commissioners is launching a nationwide homeowners market data call that will collect ZIP code-level data across the United States. Regulators described the effort as the most comprehensive collection of homeowners insurance policy data undertaken to date.

Announced at the NAIC’s spring national meeting, the initiative aims to give state regulators a detailed view of how homeowners coverage is priced, underwritten, and maintained across different geographies and perils. Availability and affordability remain key areas of focus.

Scope and Timing of the Data Call

Insurers writing at least $50,000 in relevant homeowners premiums must submit data by June 15. The submission will cover policy years from 2018 through 2025, with a public report expected in early 2027.

The NAIC is requesting detailed information, including policy type, premiums, claims and losses by peril, deductibles, cancellations and nonrenewals, coverage limits, valuation methods, and mitigation discounts.

Regulators plan to use the data to assess how policy terms and deductibles affect cost and access. They will also evaluate mitigation efforts, monitor carrier financial strength, and review consumer awareness of insurance coverage.

Florida Insurance Commissioner Mike Yaworsky, chair of the NAIC’s Homeowners Market Data Call Task Force, said the effort will provide regulators with additional tools and resources to support preparation ahead of severe weather events.

The initiative builds on a 2024 agreement between the US Treasury’s Federal Insurance Office and the NAIC to standardize and share homeowners insurance data. Treasury previously warned that climate-related events were increasing costs and reducing availability in several regions.

Market Conditions Driving the Initiative

The data call comes as pressures continue to affect the homeowners insurance market. A January 2025 Treasury report found that costs are rising while availability is declining, particularly in areas exposed to wildfires, hurricanes, and convective storms.

From 2018 through 2023, insurers of last resort in California, Florida, and Louisiana saw policy counts roughly double as private carriers pulled back. Florida’s Citizens Property Insurance Corporation grew to about 1.4 million policyholders, becoming the state’s largest home insurer.

Carrier actions have also shaped the market. In 2023, State Farm and Allstate paused new homeowners business in California, citing wildfire risk and inflation. State Farm later sought a double-digit rate increase in 2025 following major wildfire losses.

In Florida, legislative reforms have spurred some new capital investment. However, Citizens still holds more than 1.3 million policies, and estimates indicate that about one in five homeowners in the state has no insurance coverage.

Weiss Ratings analysis of NAIC data showed that Florida and California recorded the highest rates of policyholder drops in 2024, while Louisiana experienced the sharpest increase in nonrenewal rates over the past five years.

Industry Perspective on Data Collection

Industry groups said the data call will require significant reporting effort but acknowledged its role in improving transparency.

Erica Weyhenmeyer, policy vice president for market regulation and workers’ compensation at the National Association of Mutual Insurance Companies, said the design reflects progress in transparency and execution. She added that the focus on affordability, availability and catastrophe risk aligns with current regulatory discussions.

Parallel Focus on Artificial Intelligence Oversight

At the same meeting, the NAIC provided an update on its Artificial Intelligence Systems Evaluation Tool, which is being piloted with volunteer insurers in 2026.

The tool is designed to help regulators evaluate how insurers govern and monitor AI systems used in underwriting, claims and marketing. The NAIC plans to refine the tool based on feedback and release it for public comment later in 2026, with formal adoption targeted for the fall national meeting.

This work builds on the NAIC’s 2023 AI Model Bulletin, which established principles for responsible AI use in insurance.

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Hurricane Planning Tool Faces Uncertain Access Ahead of 2026 Season

Hurricane Planning Tool Faces Uncertain Access Ahead of 2026 Season

Emergency planners across the United States may soon face uncertainty regarding access to a key hurricane planning tool, according to a recent CNN report.

HURREVAC, a web-based platform used by meteorologists and emergency managers, supports critical decision-making before and during hurricanes. FEMA owns and funds the tool, while the U.S. Army Corps of Engineers administers it through an interagency agreement. That agreement has not been renewed, which has delayed the contract tied to the system.

Officials within FEMA, along with external meteorologists and the International Association of Emergency Managers, have warned that access to the system could be interrupted in the near term.

HURREVAC allows users to simulate both historical hurricanes and potential future storm scenarios. Emergency planners rely on these simulations to evaluate evacuation timing, storm surge impacts, and response strategies. The system also supports joint training exercises between the National Weather Service and emergency management agencies.

The platform integrates storm surge data through the National Weather Service’s SLOSH modeling tool. Access to that data could also be affected by the same contract lapse.

The timing of the situation coincides with the period when many agencies begin hurricane preparedness training. The 2026 Atlantic hurricane season is about three months away.

Brian LaMarre, a former chief meteorologist for the National Weather Service in Tampa and now a private consultant, said the tool plays a central role in preparedness efforts. He noted that planners use HURREVAC to simulate storms of varying intensity and direction to assess how surge levels and evacuation needs may change across different communities.

The simulations help local officials evaluate evacuation routes, timing, and other logistical factors. These exercises are designed to support decision-making based on both forecast data and historical trends.

In a March 18 statement, the International Association of Emergency Managers said disruption to the tool would limit access to storm surge visualizations, training modules, and transportation modeling. The organization represents more than 6,000 emergency managers nationwide and noted that the current contract was set to run through late March.

A FEMA spokesperson stated that the contract will be extended and that the system remains operational. The agency said there is no interruption in service and emphasized that HURREVAC remains available to emergency management partners.

However, LaMarre said he was not aware of any confirmed extension at the time of reporting.

During hurricane season, officials also use HURREVAC to analyze real-time data. The platform allows users to overlay the hurricane track cone of uncertainty onto local maps, helping planners assess how potential shifts in a storm’s path could affect specific areas.

According to LaMarre, if access to the system is interrupted, it could reduce the time available for training and limit the tools available for interpreting incoming storm data.

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California Considers Construction Insurance Role to Support Factory-Built Housing

California Considers Construction Insurance Role to Support Factory-Built Housing

California lawmakers are exploring a new approach to address the state’s housing shortage. A recently introduced legislative package focuses on expanding factory-built housing, including a proposal that would involve the state in construction insurance.

Per Cal Matters, Assemblymember Buffy Wicks of Oakland, along with a bipartisan group of legislators, introduced several bills to encourage cost-cutting construction methods. The package places particular emphasis on factory-based building, where homes are constructed off-site and transported for installation.

Supporters of factory-built housing point to several potential benefits. These include faster construction timelines, safer working conditions, and lower overall costs. These efficiencies are expected to help make housing more affordable. However, despite long-standing interest in the concept, the industry has not reached large-scale adoption. Industry advocates cite regulatory and financial barriers as key challenges.

One proposal, Assembly Bill 2166, takes a different approach from the rest of the package. Authored by Wicks and Assemblymember Juan Carrillo of Palmdale, the bill aims to provide insurance guarantees for developers and lenders working with factory-built housing. While details remain limited, the bill would position the state as a reinsurer in certain situations.

This approach would mark a departure from previous housing policy efforts in California. Tyler Pullen, a researcher at the Terner Center for Housing Innovation at UC Berkeley, said the concept is new at the state level. He noted that similar ideas have emerged in discussions with industry stakeholders, though the proposal remains complex and open-ended.

Construction projects often carry significant financial risk. Cost overruns, project delays, and legal disputes are common concerns. To manage these risks, stakeholders rely on financial tools such as surety bonds. These arrangements allow an insurer to guarantee payment if a contractor or subcontractor fails to meet obligations.

Surety bonds provide reassurance to developers and lenders. According to Michael Merle, business development director at Autovol, a bonded project reduces financial exposure if a part of it fails. However, obtaining a bond can be difficult for factory-based builders, especially newer companies without an established track record.

The bill identifies a “self-reinforcing cycle” affecting the industry. Developers and lenders often require bonding due to concerns about factory reliability. At the same time, factories struggle to secure bonding without proven financial performance. This dynamic can limit opportunities for newer manufacturers and restrict industry growth.

Under the proposed legislation, the state would partially back surety bond payouts in certain extreme cases. The goal is to increase insurer confidence, which could lead to broader bonding availability. In turn, developers may feel more comfortable engaging with factory-built housing providers.

The concept resembles existing guarantee programs in other sectors. Federal entities such as the U.S. Department of Veterans Affairs, Fannie Mae, and Freddie Mac guarantee mortgages to encourage lending. The Small Business Administration provides surety bond guarantees for small businesses. California currently operates a loan guarantee program for health care facility construction, though it does not extend to housing.

Industry response to the proposal has been mixed. Some stakeholders view the measure as a way to support emerging manufacturers. Others question whether it addresses the most pressing barriers.

Ryan Cassidy, vice president of real estate at Mutual Housing California, expressed skepticism about the approach. His organization already uses factory-built housing and works with established manufacturers. He suggested that direct financial support for projects may be more effective than insurance-related incentives.

Merle noted that larger, established factories often have fewer challenges obtaining coverage. However, newer companies with limited project history face greater difficulty securing bonds. The proposal could primarily benefit those newer entrants.

Lawmakers will consider the bill in a legislative committee hearing scheduled for late April. Several details remain unresolved, including the extent of the state’s financial exposure.

Pullen said the proposal is intended to support early adoption of factory-built housing. Over time, he indicated that private insurers may become more willing to provide coverage without state involvement. For now, the approach's effectiveness remains uncertain.

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Hawaii Kona Storms Drive at Least $1 Billion in Losses, Aon Reports

Hawaii Kona Storms Drive at Least $1 Billion in Losses, Aon Reports

Back-to-back Kona storms that impacted Hawaii between March 10 and March 24 have resulted in total economic and insured losses of at least $1 billion, according to Aon’s weekly catastrophe report, citing state officials.

The storms produced extreme rainfall and widespread flooding across much of the state. Aon noted that loss estimates remain preliminary and could rise in the coming weeks and months as additional damage assessments are completed.

Agricultural Losses Contribute to Total Damage

Aon’s report includes significant agricultural impacts within the overall loss estimate. Recent surveys identified more than $9.4 million in farmland damage across the state. Of that total, more than $2.7 million occurred on O‘ahu alone.

These figures reflect early assessments, and further evaluations may lead to higher reported losses.

O‘ahu Among Hardest-Hit Areas

O‘ahu experienced some of the most severe impacts, particularly in northern regions such as Waialua and Haleiwa. Flash flooding and landslides damaged hundreds of homes, agricultural areas, and roadways.

The storms also affected critical infrastructure, including schools, hospitals, and airports across the state.

Storm Timeline and Rainfall Intensity

The first Kona storm occurred from March 10 to March 16, followed by a second system from March 19 to March 24. Kona storms are slow-moving low-pressure systems that typically form between late fall and early spring.

Heavy rainfall from the first storm increased the risk of flooding during the second event. According to Aon, the most intense rainfall occurred overnight between March 19 and March 20. Some locations in northern O‘ahu recorded nearly a foot of rain during that period, which contributed to severe flooding and landslides.

Over the full two-week period, Hawaii experienced its heaviest rainfall event since 2004. Maximum rainfall totals exceeded 52 inches at mountain summits, including Kaala on O‘ahu and Puu Kukui on Maui.

Emergency Response and Evacuations

The storms prompted a significant emergency response. Authorities rescued approximately 230 people from floodwaters, while at least 5,500 residents received evacuation orders.

Officials also issued warnings regarding a potential failure at the Wahiawa Dam. However, water levels have stabilized in recent days.

Aon stated that the full scope of insured and economic losses will become clearer as additional data becomes available.

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